The services are generally free, but some may come with a cost-sharing component or a request for donations. To implement the law, Congress created a federal Administration on Aging and called for states to form their own aging-related agencies. Today, those agencies help direct more than $2 billion per year in federal funding to hundreds of local-area agencies on aging and other providers that deliver services, such as Meals on Wheels. During the COVID-19 pandemic, which has hit older Americans particularly hard, lawmakers have funneled hundreds of millions of dollars in extra funding into the law’s programs. The program had been slated for about $2.1 billion in funding in fiscal years 2020 and 2021. But the extra boosts brought the total to $3.22 billion in 2020 and $3.74 billion in 2021. The new money paid for additional home-delivered meals for seniors stuck at home, greater support for caregivers and access to vaccines against the virus. Due Diligence More than 11 million seniors benefit in some way from programs authorized under the Older Americans Act, according to the National Council on Aging. As a result, it is likely that reverse mortgage originators will encounter clients who lean on the law’s assistance. As Skaggs learned, it is important for originators not to endanger the benefits borrowers already receive. She suggests asking clients to check in with any assistance providers to make sure a Home Equity Conversation Mortgage (HECM) will not cause any disruptions in service. In her experience, Skaggs says, clients do go forward with an HECM after evaluating the loan’s impact on their benefits versus the financial cushion created by the loan. Skaggs also recommends that originators get to know the services available in their area. Potential clients may be grateful for whatever assistance they can qualify for, but so will their family members, who may lack the time or expertise to track down the benefits on their own. It may take some time to find providers, Skaggs says, noting that the information is not centralized. “It really is a challenge.” But, she adds, the resulting information is a value-added service that originators can deliver. “And that’s what we’re supposed to be doing,” she says. “We’re advocates for the seniors and the loan product.” For many Americans, the lack of retirement savings likely means they could benefit from both a reverse mortgage and the services provided under the Older Americans Act. Like reverse mortgages, the Act’s benefits help to offset the costs of being retired and allow seniors to stay in their homes. “We feel that the work we’re doing at FAR ties in nicely with the importance of the Older Americans Act,” Norman says. A Funding Issue The Older Americans Act comes up periodically for reauthorization by Congress, which often modifies the program in the process. Over the decades, for example, lawmakers have given local aging organizations greater flexibility in delivering services and revised formulas for how funding is distributed. The most recent renewal took place in 2020 and carries the act into 2024, with some key amendments, according to the Congressional Research Service. The amendments address issues, such as disease prevention. The law, for example, now defines health promotion activities to include screening for immunization status, suicide risk, fall-related traumatic brain injury and social isolation. The reauthorization also modifies nutrition services by explicitly ensuring that programs address the risks of malnutrition, according to the research service. Additional changes strengthen assistance for caregivers. In the meantime, advocates for seniors are pushing for greater funding under the law. They argue more money is needed to cope with aging Baby Boomers, who will more than double the number of older Americans by 2030, according to the National Association of Counties. About 25 percent of the country’s 625 area agencies on aging operate under the umbrella of county government, the association says. An additional 28 percent operate under regional entities that include counties. Outside of the pandemic-era boost, funding has been relatively flat over the last decade, according to the Congressional Research Service. Annual appropriations have bounced between a low of $1.81 billion Older Americans Act continued on page 22 REVERSE MORTGAGE / MAY- JUNE 2022 21
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