Board Room Fond Memories of Reverse Mortgages Prompt Calls for Innovations By Elly Johnson I RECENTLY TOOK a trip down memory lane, reminiscing about my time in the reverse mortgage industry. So many thoughts came to my mind, especially those fond memories of becoming part of a program designed to help our older Americans, a group that has always held a soft spot in my heart. After spending more than 13 years in the forward world, I embarked on a journey that would prove to be more fulfilling than I could have imagined. Helping someone realize a dream of homeownership is rewarding but not nearly as much as being a part of the HECM program that allows so many to remain in their homes. And notice that I said, “their homes,” not “their houses.” You know there is a difference. And if you spend time helping someone obtain a reverse mortgage, you will see that difference. I listened to the stories of how they raised their children in their homes—now some raising grandchildren there—and how they worked hard to make their house a home. Oh, if these walls could talk, what might they say? While traveling down memory lane, thoughts of the product design came to mind. In the early years of the pilot program, few people had heard of the product. Or, if they did hear about it, their first response was, “You mean that loan where the lender takes your home?” I wish I had a dime for every time I heard that. Since the beginning, we have come a long way, but we have far to go. We have seen the HECM product change over the years, specifically with the addition of new safeguards and consumer protections, such as the financial assessment and non-borrowing spouse protections. In addition, we have watched as new proprietary reverse products have entered our space, opening new opportunities for our aging population to remain in their homes. Yet the market penetration for reverse mortgages remains low. Many people say this product seems too good to be true, so why are there not more of them being originated? We have watched as others have developed an interest in this product and have seen many new faces join our exciting industry. Fresh faces and ideas are genuinely welcome, and we encourage anyone to step out of their comfort zone and play a more prominent role in helping to grow our business. Too often, people may sit back and think their ideas are not important, but those ideas will help bring us to a new level in reverse mortgages. A paradigm shift may be needed to help us catapult our industry to the next level and beyond. I challenge each of you to step back and look at your current processes, approaches, thoughts and beliefs regarding reverse mortgages. Then, develop working groups and task forces within your organizations to meet and discuss the product and the reason for the product—our older Americans. Provide an opportunity for open dialogue at every level. William Golding once said, “The greatest ideas are the simplest.” How often have you discovered a simple little invention and said, “Wow, I wish I had thought of that.” Be the one who thought of that next innovation with reverse mortgages. Elly Johnson 6 REVERSE MORTGAGE / JULY-AUGUST 2022
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