Improved Education Is Essential to Market Expansion By Joseph DeMarkey RESPONSIBLE MARKET GROWTH is one of the most important goals for NRMLA. After a very successful 2021 for the industry, NRMLA plans to focus heavily on education in 2022 to grow the market. We encourage all NRMLA member companies to follow this path as well. While product innovation expands access to reverse mortgages, pervasive misconceptions must be countered through targeted educational outreach and programs. We can’t innovate our way out of what the general public—including potential borrowers—believe or think they know about reverse mortgages. I always have maintained that a reverse mortgage is the most brilliantly designed residential mortgage loan I have seen in my 36-year career—but it’s also the one that is most misunderstood. There is a significant market need for reverse mortgages, yet a lack of understanding prevents widespread product adoption. As industry leaders, it’s our job to address our products’ misunderstandings head-on through better education. Advisers for senior homeowners are the gatekeepers of our industry’s growth. However, most financial advisers, builders, in-home care agencies, real estate agents and elder law attorneys simply don’t know enough about reverse mortgages to include them in their financial and retirement planning toolboxes. My company, Reverse Mortgage Funding (RMF), is doubling down on its investment in professional education to ensure our partners, potential borrowers, their family members and advisers are well educated on reverse mortgage strategies and product features. Through RMF’s Retirement Experts Network, financial advisers, elder law attorneys, tax professionals, housing counselors and regulators can attend educational webinars, and some earn continuing education credits. RMF also is investing in educational materials for in-home care agencies whose clients want to remain in their homes. As you can imagine, the demand for in-home care services has become even greater throughout the pandemic. Seniors are seeking advice from in-home care agencies on how to finance the services they so desperately need and desire. Lastly, RMF is educating builders about reverse mortgage options, especially those in age-restricted communities. This is particularly important as the industry expands accessibility to younger customers through innovative products, such as RMF’s recent launch of its Equity Elite product for people aged 55-plus in certain states. A key aspect to RMF’s decision to lower the minimum age to 55 is the ability to serve the oldest members of Gen X, a key target demographic of many builders of new age-restricted communities. In conclusion, I strongly believe that when potential borrowers, their family members and advisers are better educated on the product features of reverse mortgages, they will make better informed decisions about their financial well-being. This will undoubtedly lead to the responsible market growth that our industry needs. Board Room Joseph DeMarkey REVERSE MORTGAGE / MARCH-APR I L 2022 7
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