In Reverse Help for Older Americans Comes in Many Forms By Thomas A. Barstow LESSONS FROM THE past two years are too numerous to count, especially because the lingering effects of the pandemic will be felt for a long time. Plus, it is difficult to analyze and reflect when the nation is in perpetual realignment mode, jumping from one crisis to the next. It isn’t easy, in other words, looking into a rearview mirror when the view from the front windshield stays cloudy. And maybe, just maybe, some of those lessons weren’t lessons at all. For example, parents, pundits and planners have been telling us for generations that most of us need to do a better job saving, but it took the pandemic to force the issue. American families socked away a record amount of cash during the crisis from a variety of sources. Some money came from stimulus checks but also from the mere fact that there wasn’t much to do during the lockdowns. Some people who kept working figured they might as well keep rolling over the vacation kitty. And then the stock market reached new heights, as did property values, which certainly made folks feel richer. Regardless, as noted in Saving Increases Nationwide, p. 24, much of that “excess saving” will dissipate soon, as people get back into their spending habits or just plain need the money to make ends meet. Already, the nation has been returning to the low saving rates that have existed since at least 1960. Understanding these dynamics means that equity release products remain a viable option for people to supplement Social Security and retirement plans. To paraphrase Loren Riddick, national director of reverse lending for Thrive Mortgage in Alcoa, TN, even if you have some money stashed away, the unknown is the unknown. So, it is better to have a reverse mortgage and not need it, he suggests in the article, than to need it and not have it. While many were saving, others were surviving. That situation is where safety nets created generations ago provide critical assistance to seniors. Oftentimes, these programs operate behind the scenes, with the people doing the work going unnoticed while keeping seniors from suffering during dire times. In Understanding the Older Americans Act, p. 20, writer Joel Berg outlines how policies and programs have been in place for decades to keep our elderly neighbors from becoming hungry, cold or lonely. As several people tell Berg, loan officers who specialize in reverse mortgages need to be aware of these programs and how they are used in their communities. That knowledge can prevent a reverse mortgage from hindering a client’s ability to fully tap into a program with limited eligibility based on income criteria. Ellen Skaggs, CRMP, national reverse mortgage sales manager for New American Funding, recounts just such a case with one of her clients, telling Berg that last-minute adjustments to the loan allowed the client to get the reverse mortgage while preserving the benefits. The Older Americans Act, which passed in 1965, forms the foundation for many programs, from Meals In Reverse continued on page 4 REVERSE MORTGAGE / MAY- JUNE 2022 3
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