Nov/Dec 2021 RMM

based on the client’s individual needs and circumstances, Downey says. The reverse mortgage may not be the best fit compared to other options. “The bottom line is to do the right thing for each client every time,” he says. “In my opinion, there should be a separate license or certification to originate reverse mortgages,” Downey adds. “Clearly, the logistical complications of licensing make this impractical, but private certification may provide a path forward. NRMLA’s Certified Reverse Mortgage Professional (CRMP) designation requires experience, exam testing and commitment to the association’s Code of Ethics and Professional Responsibility. While this is not a formal licensing requirement, it raises the bar of professional standards and accountability as a violation could result in a loss of the certification.” A reverse mortgage does not work in every situation, and lenders should not encourage people to take one out if it is not a good fit, Downey says. “In my opinion, this is a product that should not be sold. It is a product that needs to be explained, and it has to be carefully evaluated to meet the situation,” says Downey, who has been offering HECMs alongside forward mortgages for 20 years. Making an Investment Accola sees the addition of reverse mortgages as part of a broader mindset change for forward originators. In short, he believes loan officers should see themselves as mortgage planners, which entails greater attention to how a mortgage fits into a client’s broader financial picture, not only at 62 but also at 32 and 42. A mortgage buys shelter, Accola says. “But it’s more than that. We’re also buying a home as an investment.” As a result, Accola says originators should be looking at a mortgage as a nest egg that clients can draw from as they age, just like any other investments. Originators could then help younger clients position themselves for a reverse mortgage as they age. That translates into a slower sales process, one that entails gathering more details on a client’s situation. Do they have children? Do they have other investments? Do they have life or long-term care insurance? When do they plan to retire? “We have an exhaustive interview process for clients at Fairway,” Accola says. Clients and forward originators often push back, he says. Clients expect a speedier process, while originators see the longer application process slowing them down and impacting their compensation. A planning-focused approach does take more time, and originators may see a short-term dip in income, Accola acknowledges. Indeed, the reverse origination process often requires more patience, in general, particularly for borrowers who may not be as tech savvy, says Lori Erskine, CRMP, vice president, wholesale at Mutual of Omaha Mortgage, Dripping Springs, TX. “The loan originator may need to meet with the borrower in person, possibly multiple times, to assist them in getting copies of documents, obtaining all pages of statements and getting the correct time/date ranges,” she says. “With older borrowers, and a product that they are not as familiar with, it is important to take the time to make sure the borrower fully understands how it works and what their end result will be.” But if they are willing to invest the time, loan originators end up better positioned for the long term as trusted advisers to their clients, Accola says. “There is no question in my mind that being a trusted adviser in the mortgage business is way more valuable than being focused on transactions.” The value includes a higher volume of referrals, as well as greater access to financial planners, a group that many lenders see as key to reaching potential clients. Many loan originators expect financial planners to hand over leads when the loan officers have no value to add and really don’t understand financial planning specifics—that is actually a negative and will lead to no loans and a worsened view from the financial planning community, according to Accola. A mortgage planner, on the other hand, can discuss how a given mortgage may aid a client, which can help people overcome the concerns they might otherwise have about reverse mortgages, Accola says. People may think they don’t want a reverse mortgage, says Accola. But they want the things a reverse mortgage can deliver. “Everybody wants lifetime income. Everybody wants security,” he says. “The most important step— which is not easy or simple and there is no shortcut—is to be sitting down with a borrower and asking questions about their hopes and dreams.” Going Reverse continued from page 23 24 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2021