Reverse Mortgage magazine Nov-Dec 2020

At C2 Reverse, a division of C2 Financial Corp., the focus on employees revolves around training. Future plans call for doubling down on that commitment, says Scott Harmes, CRMP, a NRMLA board member and national manager for C2 Reverse. A growing share of its loan officers are becoming Certified Reverse Mortgage Professionals (CRMPs). “I really believe that’s a key,” Harmes says, citing the growing acceptance of reverse mortgage products among financial advisers. “It requires a higher level of profession- alism to work with those kinds of referral sources.” Harmes also envisions further growth in private-sector products across his San Diego-based compa- ny’s footprint, which is centered on California and other western states where home values have been ris- ing, even during the pandemic. The products made up about two per- cent of C2’s volume in 2017 and are on pace to approach 50 percent in 2020. “In a lot of our markets, the HECMs aren’t really appli- cable because the average home value is over $1 million,” he says. He expects home values to continue going up due to the combination of low interest rates and a housing shortage. In many areas of the country, homes have been selling quickly when they hit the market. Many borrowers may want to stay in their homes as a way of avoiding senior-living facilities, which were vulnera- ble to outbreaks of COVID-19. “Often, a reverse mortgage is key to making that aging in place a sustainable solution.” David Peskin, president of Reverse Mortgage Funding, says 2021 will allow RMF to apply many of the lessons learned this year, including an investment in technology, focusing on product development and expanding the company’s Equity Elite® proprietary product line. “We’ve learned a lot over the past year because of COVID-19,” Peskin says. “One of the things we’ve seen is that older Americans are embracing technology and are choosing to do business virtually. To help us adapt to their changing needs, we’re making significant investments in our technology to improve the overall customer experience.” While the year ahead is hard to predict, says Terry Connealy, president of Mutual of Omaha Mortgage, “It would be nice to have a little more stability as we go into 2021.” Whatever the new year brings, Connealy says, he is optimistic about the reverse mortgage market. The pan- demic has helped to demonstrate the product’s value and raise awareness. By the end of the year, the com- pany expects to be rolling out a com- prehensive marketing plan involving digital and direct mail outreach, Connealy says. “We also are looking at new technology that we think will help with a better customer experience but also help our teams be more efficient with the uncer- tainty of continuing to work from home,” Connealy says. The idea is to allow customers to take a more active role in the lending process. AAG’s response to the crisis, along with increasing interest in products, will help the company going into 2021, Jahangiri says. “With an increase in home equity access for retirees, AAG has a healthy pipeline and positive outlook,” he says. “We are in growth mode and investing in the business and our employees. I am grateful our business is solid and stable during this once-in-a-lifetime event. The industry is experiencing a very unique dynamic, with rates being at record lows combined with an increased demand for home equity products, like reverse mortgages. One thing we have realized is that our product is more resilient to economic cycles than other financial products.” Changes Ahead Whether and when employees return to the office hinges on variables that vary from place to place in the U.S., such as infection rates and local rules. “We need to make sure that if we do have the ability to move back into the office that, first of all, we are abiding by all the state and local regulations of what we can and can’t do,” Connealy says. 2021 Offers Potential continued from page 19 Scott Harmes Terry Connealy 20 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2020