borrowers. In the past, lenders assumed children looked askance when their parents broached the idea of a reverse mortgage. However, AAG surveys show that adult children are becoming more financially savvy, Robinson says. Facing their own financial challenges, they want to help their aging parents be financially prepared. According to AAG, 60 percent of adult children say they are in favor of their parents using home equity to fund their later years. However, they may not know their parents are even looking at a reverse mortgage, Robinson says. “The more that they are aware and involved with their parents and able to have the conversation about tools that can help them navigate their financial future, the better off we are,” Robinson says. Robinson also sees continuing efforts to integrate financial advisers and tax planners into the process of distributing reverse mortgages. “Making sure there are people outside of our industry who are singing the praises of the product is a crucial factor in making sure seniors know this is a viable product that can help them protect their financial futures,” he says. More forward brokers may lean into the reverse space, as they seek to make up for declines in the refinance business, he adds. AAG plans to help them make the pivot. “Given the reduction in the volume of loans originated in the forward space, there’s definitely an appetite for more brokers to lean into the reverse,” Robinson says. “They’re starting to see the value of the product.” Other changes in store at AAG include the introduction of its own private-label product in 2023, Robinson says. The company initially set a 2022 rollout but held off due to market conditions. Macerato says it is difficult to say what might happen in the year ahead. Longbridge is seeking new and different ways to bring new reverse mortgage borrowers into the space through partnerships and product innovation. “This is key to the growth and success of the industry going forward,” she says. The proprietary product market has also seen unprecedented volatility due to the rising rate environment and overall uncertainty, she adds. “We continue to be committed to our Platinum suite of products and are working hard to differentiate our program by making sustainable enhancements in order to demonstrate a commitment to our borrowers and our wholesale partners,” Macerato says. Other Dynamics at Play During the pandemic, Americans became accustomed to online interactions for everything from banking to education to healthcare. Seniors were no exception. As a result, the reverse mortgage industry can no longer afford to look at older Americans as loath to engage with online tools. At AAG, just over 70 percent of customers are using e-signatures for their applications, Robinson says. “That was unheard of just two or three years ago.” AAG also is seeing more of its marketing leads coming through its web-based channels, Robinson says. “What have historically been TV ads with Fred Thompson or Tom Selleck or direct mail are rapidly shifting to an online environment.” Awalt expects the market to be somewhat slower in 2023, which he sees as an opportunity to focus on the business itself. At Allegiant Reverse, which provides title and settlement services to reverse mortgage lenders, the to-do list includes projects that boost efficiency and enhance customer experience. Technology will play a key role in both efforts, Awalt says. But he doesn’t want to lose the valued input of experienced professionals, either. “We’re not pivoting toward a more automated environment,” he says. “We’re just going toward a more efficient environment.” Employee training will be another focus next year, Awalt says. Given the challenges in hiring and recruiting in 2022, the company has been hiring people with less experience but with a strong aptitude for the work and matching them with the company’s experienced team leads. The hands-on experience has been valuable for newcomers to the industry, Awalt says. But a slower pace allows the company to undertake more formal training, as well. Other highlights in 2023 likely will include the updated HECM Handbook, which is expected to be completed at the end of this year; the transition to the London Inter-Bank Offered Rate for setting interest rates; and approaches to servicing and service, observers point out. Back to Basics continued from page 21 22 REVERSE MORTGAGE / NOVEMBER–DECEMBER 2022
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