September-October 2024 Volume 17, No. 5
The official magazine of the National Reverse Mortgage Lenders Association
NRMLA Annual Meeting Focuses on Improving Your Sales SHARPENING YOUR SAW
INSIDE: Working With Legislators: Lenders in Massachusetts Offer Example of Playing the Long Game Servicing Corner: How to Prepare Borrowers and Their Heirs for the Death of the Last Borrower
P.24
P.28
September-October 2024 Volume 17, No. 5
Contents
Features 20
From the Top Marion McDougall, CEO, Celink By Darryl Hicks 10
PUBLISHER Peter Bell pbell@dworbell.com SENIOR EDITOR Thomas A. Barstow thomas.barstow@theYGSgroup.com ASSOCIATE EDITOR Darryl Hicks dhicks@dworbell.com MANAGING EDITOR Therese Umerlik therese.umerlik@theYGSgroup.com MANAGING EDITOR, DWORBELL, INC. Jessica Hoefer NRMLA PRESIDENT Stephen Irwin NRMLA EXECUTIVE COMMITTEE CHAIR Michael Kent, PHH Mortgage Corp. dba Liberty Reverse Mortgage
Sharpening Your Saw NRMLA Annual Meeting focuses on improving your sales By Thomas A. Barstow Working With Legislators Lenders in Massachusetts offer example of playing the long game By Joel Berg Servicing Corner How to prepare borrowers and their heirs for the death of the last borrower By Celink
24
28
Columns 2
Those We Help Reverse mortgage lessens fear of running out of money By Darryl Hicks 32 Senior Vice President of Reverse Lending, Fairway Independent Mortgage Corp., Arvada, CO By M. Diane McCormick 14 CRMP: Across the Kitchen Table A chat with Christine Jensen, CRMP,
DESIGNER Tara Smith
In Reverse Saws must be sharpened By Thomas A. Barstow
ADVERTISING SALES Natalie Matter Bellis
natalie.matterbellis@theYGSgroup.com Reverse Mortgage is the official publication of the National Reverse Mortgage Lenders Association. The magazine is published every two months. For inquiries regarding association membership and/or magazine subscriptions, please call Darryl Hicks at 202-939-1784. Advertising and editorial inquiries should be directed to Natalie Matter Bellis ( natalie.matterbellis@theYGSgroup.com ) and Therese Umerlik ( therese.umerlik@theYGSgroup.com ), respectively. Association & Subscription Contact: National Reverse Mortgage Lenders Association 1400 16th St., NW, Suite 420 Washington, DC 20036 202-939-1760 lross@dworbell.com Industry: www.nrmlaonline.org Consumers: www.reversemortgage.org Advertising & Editorial Contact: National Reverse Mortgage Lenders Association 1400 16th St., NW, Suite 420 Washington, DC 20036 202-939-1760 ©2024 National Reverse Mortgage Lenders Association
4 6
Steve Irwin: Moving Forward Embrace the unanticipated changes ahead
Board Room HECMs are more than loans By Mike Kent
Departments 8
Hey, Members A roundup of issues and news for NRMLA members
34 36
Member News Who’s who in reverse mortgage
By the Numbers ACL releases 2023 profile of older Americans
In Reverse
Saws Must Be Sharpened You Can Get Better by Learning From Other Masters of a Craft By Thomas A. Barstow
AS A WRITER, I have been trained to avoid cliches, the threadbare phrases that lose meaning over time: “The best thing since sliced bread.” “All that glitters isn’t gold.” “Cat got your tongue?” It usually is better to find a fresher way to say something. For me, though, one saying has kept a strong mean- ing: “Sharpen your saw.”
As an amateur carpenter, I have had the pleasure of working with individuals who have spent their careers in a profession where the phrase takes on a daily meaning. If you ever tried to cut through wood, metal or anything with a dull blade, you know exactly what that expression means. The job is much easier if your tools are sharp, and that takes maintenance, upkeep and attention.
2 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
In Reverse
In this issue, we spend a lot of time talking about how professional lenders can continually become better— sharper—at what they do. That is one focus of NRMLA’s Annual Meeting & Expo planned for September 2024 in San Diego, CA. One way professionals can learn is by listening to how other experts go about their craft through tips and ideas that help them constantly improve. That is the con- cept behind the loan officer roundtable that will be held on the morning of Tuesday, September 24, 2024, a few hours before the Annual Meeting begins. And there will be an opportunity to ask questions, too. “It’s an open discussion for everybody. Anyone can pipe up,” says Bruce Simmons, CRMP, a reverse mort- gage specialist with American Liberty Mortgage based in Colorado. Simmons will be among those who will lead the discussion. “That is the best way to find out who is doing what.” More details about the Annual Meeting can be found in the article Sharpening Your Saw (p. 20). Navigating Legislatures Another article in this issue examines how loan experts in Massachusetts collaborated with lawmakers to update the rules that required in-person counseling for people seeking a reverse mortgage. While allowing people to conduct the counseling remotely made sense during the COVID-19 pandemic, the effort to change the law took years. The stakehold- ers in Massachusetts had to navigate the legislature and changes in administrations to see the effort through. “What we found through our experience here is that, as the saying goes, ‘It takes a village to make things happen,’” Brett Kirkpatrick, a reverse lender and vice president at The Federal Savings Bank, tells writer Joel Berg in the article Working With Legislators (p. 24). Readers nationwide can learn from the experiences in Massachusetts, even though each state will have its own rules on legislation. And you shouldn’t let the complex nature of lawmaking deter you from trying to influence policy, Scott Norman, CEO of the Texas Mortgage Bankers Association, says in the article.
“You don’t have to understand exactly how a bill becomes a law and how the amendment process works,” says Norman, who took the job at the association after years of being a NRMLA member and co-chair of its board. Understanding How Others Fit in A third example of how to get stronger and better at your job by listening to the experts can be found in an expanded Servicing Corner (p. 28). The article written by Celink— How to Prepare Borrowers and Their Heirs for the Death of the Last Borrower —delves into the details of what happens with a HECM loan. The article includes not only important information but also advice for loan officers. “Loan officers should not advise borrowers that they will have 12 months to pay off the loan or sell the home. This is not accurate and leads to misunderstandings,” Celink writes. “Loan officers should advise borrowers that their heirs need to contact the servicer as soon as possible following the borrower’s death or other events of default to find out what is required to obtain an extension.” Carpenters who understand that their work will be preceded and then followed by other tradespeople are sure to build the best possible product and create the best reputations. So, loan officers who know what happens before and after they take applications are sure to succeed much more than those who do not. And the entire pro- fession will benefit. All of that can happen if professionals—even those who already are experts at their craft—understand the importance of continually sharpening their saws. Loan officers who know what happens before and after they take applications are sure to succeed much more than those who do not.
Thomas A. Barstow, senior editor of Reverse Mortgage , is a writer and editor based in Pennsylvania.
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 3
Moving Forward
Embrace the Unanticipated Changes Ahead By Steve Irwin, President, National Reverse Mortgage Lenders Association
“Because things are the way they are, things will not stay the way they are.” —Bertolt Brecht, German theater practitioner, playwright and poet
AS WE COLLECTIVELY anticipate another great year, we continually work to manage our businesses, our opera- tions and our lives so we might find stability. We anticipate and prepare for the strong headwinds we might face. We diligently strive to manage the future through robust analytics and our collective relevant experiences. Naturally, we desire consistent and predictable out- comes. These desires often prove to be futile, however. Of course, we need action plans and contingency plans. This is the responsible and prudent way to operate. We must also collectively recognize change is coming. We can’t control change, and we can’t always predict it. Chaos happens, and we need to anticipate it. We need to look forward to changes that unexpect- edly get thrown our way and embrace them when they happen. We must prepare to be as nimble as possible and mitigate those previously unknown risks. We must understand how unanticipated change impacts our teams, our families and, importantly, the customers we serve. Then, we get to work, adapt, execute and come out stronger. So, we already know the coming year will see changes to our regulatory environment, to the dynamics of the
secondary markets and to the evolv- ing technology we all employ. As I write this column, I don’t know what these specific changes will be, but I do know that change is coming to our critically import- ant marketplace. There are also changes com-
Steve Irwin
ing our way that none of us can anticipate. There will be changes that NRMLA and its membership will lead. There will be changes that we all cause and will do our best to prepare for. I look forward to the opportunity to be creative and innovative in handling unknowns and dealing with situa- tions that need quick reactions. I eagerly anticipate advocating for our members in light of these unanticipated changes. I embrace the opportunity to further our cause as a membership organi- zation that advances the need for responsible retirement financing and supports the mission of enabling older homeowners to safely age in place. I also look forward to celebrating with you all as we come out the other side of those unanticipated changes. We deserve to take a breath, reflect on the outcomes and ask ourselves: What’s next? Onward.
4 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
10 YEARS OF CHANGING LIVES TOGETHER It’s been a decade since HomeSafe, our proprietary reverse mortgage product, expanded your portfolio and the possibilities of what home equity can do for your borrowers. The sky’s the limit with loans up to $4M* and a more inclusive age range of 55+**. Congratulations on 10 years together, and cheers to 10 more years of innovation and wins to come.
LEARN MORE ABOUT HOMESAFE AT FinanceOfAmerica.com/HS10
* Loans up to $4 million available for HomeSafe products. The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program Not all HomeSafe products are available in every state. Please contact us for a complete list of availability. ** For certain HomeSafe products only, excluding Massachusetts, New York, and Washington, where the minimum age is 60, and North Carolina and Texas where the minimum age is 62. For business and professional use only. Not for consumer distribution. | The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. Not all HomeSafe products are available in every state. Please contact us for a complete list of availability. | ©2024 Finance of America is a division of Finance of America Reverse LLC which is licensed nationwide | Equal Housing Opportunity | NMLS ID # 2285 (www.nmlsconsumeraccess.org) | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133 | AZ Mortgage Banker License #0921300 | Licensed by the Department of Business Financial Protection and Innovation under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #23647 | Kansas Licensed Mortgage Company | Massachusetts Lender/Broker License MC2285: Finance of America Reverse LLC | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department where Finance of America Reverse is known as FAReverse LLC in lieu of true name Finance of America Reverse LLC | Rhode Island Licensed Lender | Not all products and options are available in all states | Terms subject to change without notice | For licensing information go to: www.nmlsconsumeraccess.org The company does not do business as Finance of America in CA, NM, NY, and OK.
Board Room
HECMs Are More Than Loans By Mike Kent
I’VE SPENT THE past 43 years in the mortgage origina- tion business. I’ve been a broker and a
a way to pass opportunities to the next generation. It is more than the vacation of a lifetime. The HECM loan is all of that but much more—it is a “mission.” Today, millions of eligible HECM borrowers do not even know about this product. Millions of seniors could potentially change their lives with a HECM loan, even with current principal limit factors and higher interest rates. Spreading the Word In addition to serving our customers in a caring, profes- sional and ethical manner, we should all be working to expand the reach of the HECM product. We should be reaching out daily to other professionals in the financial industry and offering to educate and train them to become proficient in the HECM program. The Federal Housing Administration and Ginnie Mae have done a great deal of work this year in improv- ing the program, primarily to help ease the liquidity needs of issuers. Hopefully, these changes will encourage more compa- nies to offer the HECM product.
mortgage banker. As a broker, my company offered many different loan products, including fixed- and adjustable-rate conventional loans, jumbo A-paper loans, subprime loans, construction loans, fix-and-
Mike Kent
flip loans and straight-up equity lending. As a mortgage banker, I have been involved in conventional A-paper, subprime and Alternative A-paper products. Every loan has a borrower, and every borrower has a story worth understanding and considering in how you serve that client. Satisfying borrowers’ needs, hopes and dreams is a big part of the business I have chosen as my profession. A HECM Is More However, the HECM program is more. It is more than just a loan. It is more than hopes and dreams. It is more than a financial tool. It is more than an affordable pathway to access home equity. It is more than
6 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
Board Room
As important and valued members of our profession, join me in teaching, educating and bringing new loan officers into our community. And join me in working to engage the millions of eligible HECM borrowers who can benefit from the HECM program. Together, let us make expanding our community our mission. Mike Kent is senior vice president of corporate develop- ment and investor relations for PHH Mortgage/Liberty Reverse Mortgage. Many of these new companies entering the reverse space will bring new customers and new opportunities to increase the distribution of the HECM product.
Many of these new companies entering the reverse space will bring new customers and new opportunities to increase the distribution of the HECM product. As chair of NRMLA’s Board of Directors, I am excited at the prospect of new companies bringing potentially hundreds and even thousands of new HECM-eligible customers into our space. I invite every company that decides to offer the HECM product to join NRMLA and tap into our exten- sive resources for learning about the HECM program. Each of us who believes in this product and loves to witness the life-changing power this product offers must become ambassadors for the HECM program. The bottom line is we need more companies and more loan officers trained in this product and out in the public square teaching seniors and other professionals the value and life-changing benefits of a HECM loan.
Partnership you can trust.
Dedicated to never competing with you - your success is our success.
Deep Industry Experience
96% Borrower Satisfaction Rating
Reverse Mortgage Is Our Core Competency
Independence and Alignment with Clients
Robust Specialized Technology
Ready to experience the difference? Visit Celink.com
© Celink. All rights reserved. NMLS #3020 - http://nmlsconsumeraccess.org. Compu-Link Corporation dba Celink (WA license# CL3020 and 603 018 607)
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 7
Hey, Members A Roundup of Issues and News for NRMLA Members By Darryl Hicks
IN THIS ISSUE, we highlight news from the second quar- ter of 2024, with links to more information. If you have any questions, email me at dhicks@dworbell.com . • Ginnie Mae published a term sheet June 27, 2024, for its proposed HECM Mortgage-Backed Securities 2.0 program, which seeks to address liquidity con- straints in the reverse mortgage sector by providing a new capital markets execution for older vintage HECMs. Comments were collected from stake- holders, including NRMLA, through July 31, 2024. ( https://bit.ly/3zo0g6i ) • Vanguard released the 23rd edition of its How America Saves report, which found that employees are contributing record amounts into their 401(k)s: 7.4 percent in 2023—almost 12 percent if you include employer contributions. ( https://bit.ly/3XJ09wh ) • The Federal Housing Administration (FHA) pub- lished a draft Mortgagee Letter in mid-June 2024 to update its defect taxonomy guidelines to include fraud or material misrepresentation involving a third- party originator (TPO) as a Tier 1 severity defect. ( https://bit.ly/4ckMn7p ) • The Consumer Financial Protection Bureau issued an order on June 18, 2024, to permanently ban Sutherland Global, its subsidiaries Sutherland Government Solutions and Sutherland Mortgage Services, and NOVAD Management Consulting from servicing reverse mortgages and to pay restitu- tion to reverse mortgage borrowers. ( https://bit.ly/45G1d65 ) • Adults ages 65 to 74 hold an average of $134,950 in debt, while individuals 75 and older hold an average of $94,620, according to Federal Reserve data ana- lyzed by MarketWatch. ( https://bit.ly/4bpq6nV ) • The U.S. Department of Health and Human Services, through its Administration for Community
Living (ACL), released a report in May 2024 on the coordinated effort to create national recommenda- tions for advancing healthy aging and age-friendly communities. ( https://bit.ly/45Fb8Jf ) • ACL released its 2023 Profile of Older Americans in late May 2024, illustrating the shifting demographics of Americans 65 and older. ( https://bit.ly/4eFveXQ ) • FHA published Mortgagee Letter 2024-10 on May 23, 2024, to implement new procedures for reporting cyberattacks. ( https://bit.ly/4cBiuj5 ) • The U.S. Department of Housing and Urban Development published a revised copy of the Single- Family Handbook 4000.1 on May 20, 2024, with changes to the HECM section. ( https://bit.ly/4chrjPq ) • Florida Gov. Ron DeSantis signed House Bill 7073 in May 2024 that amended existing law by basing the state’s documentary stamp tax on the principal limit of a reverse mortgage instead of the maximum claim amount. The new law, which took effect on July 1, 2024, could save reverse mortgage borrowers thousands in closing costs. ( https://bit.ly/3VLhxxE ) • FHA announced on April 26, 2024, in Mortgagee Letter 2024-06 that it would disallow mortgagees and TPOs from making interested party contribu- tions in HECM for Purchase transactions or allow premium pricing to qualify as an eligible funding source to meet the borrower’s minimum required investment. ( https://bit.ly/3zj3BDR ) • Massachusetts Gov. Maura Healy signed a supple- mental budget bill on April 30, 2024, with provi- sions to authorize reverse mortgage counseling via synchronous real-time videoconference or telephone permanently. ( https://bit.ly/3L2DFPh )
Darryl Hicks is NRMLA’s vice president of communications.
8 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
BECAUSE EVERY C U TS
WE E ERGIZE YURERIGS
• I d y- ad • Z - • w •C mzd
D v h w adva a a h y !
L ’S 866.871.1353 enderSupport@ ibertyReverse.com
h ma a
vd dby,
wa a vdbyh D am H &Uba Dv m HUD byh Fd aH
dm
a FH .©2024 HHM a C a ,dba b y v M a ,2000Mda D.,
410- , M . a , NJ 08054
NM ID # 2726 www. m
ma . Fam
, v
www. b y v /
m .EqaH
d .
From the Top
Marion McDougall, CEO, Celink By Darryl Hicks
FOR TWO DECADES, Celink has been the nation’s leading subservicer of reverse mortgages. Celink’s clients own the servicing rights to the loans they originate but contract with Celink to handle the administration part, whether it’s disbursing loan pay-
Reverse Mortgage magazine sat down with McDougall to learn about the challenges that come with servicing reverse mortgages, technology that has been developed to improve servicing efficiencies and steps that loan officers can take to improve the customer experience. Reverse Mortgage: Since becoming CEO of Celink, what’s the biggest lesson you’ve learned about servicing reverse mortgages? Marion McDougall: The reverse mortgage is poised to become the most critical product in our country. One in six Americans is age 65 and older. Their retirement savings range between $150,000 to $200,000, depending on which articles you read. This is not enough to age in place and effectively main- tain a home. More than 80 percent of seniors’ net worth is tied up in home equity. That tells me reverse mortgages will be viable for a long time. The next big question is, how do we solve that? It’s a vital product. The data supports that. We have plenty of resources in the U.S. to produce the product. But it’s not happen- ing. It’s still a very small volume. That, in my view, can change and should change. At the end of the day, the biggest lesson I’ve learned is that scale matters in
Marion McDougall
ments, handling customer service calls or working with the owners or the estate to pay off the loan once the property is permanently vacated. Marion McDougall has served as CEO of Celink since May 2021. She is also CEO of Compu-Link Corp., which services HECMs that have been assigned to the U.S. Department of Housing and Urban Development (HUD). Before joining Celink, McDougall owned a consult- ing firm. She also held executive roles at Caliber Home Loans, MetLife Home Loans and First Horizon Home Loans. She has more than 30 years of financial services experience in the United States and internationally, focused on mortgage and retail banking with a partic- ular emphasis on servicing, business development and client relations.
10 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
From the Top
“We encourage loan officers to make sure borrowers and heirs know that staying in touch with the servicer, especially if there is a default or when the borrower passes away, is key.”
our business. If there’s not enough scale, this product won’t survive. That’s why I’m focused on this. The product needs to be more prevalent. More loans need to be originated. The need is there. Servicing will only be healthy if there is an origination that’s created. RM: Are there key differences between servicing a traditional mortgage versus a reverse mortgage? MM: The average age of a reverse mortgage borrower in our portfolio is 75, while on the forward side, it’s the mid-40s. Reverse mortgage borrowers require more hands-on assistance. Nine out of ten contacts on the forward side are digital, while five out of ten touch points are digital on the reverse side. That’s a huge improvement from three years ago when we were prob- ably closer to eight or nine touch points through our call center. Now it’s about 50 percent digital, 50 percent through the call center. RM: What are some of the common questions that consumers contact Celink about concerning their reverse mortgage? MM: The most asked question is to confirm their line of credit balance, followed by how much money they can access during the initial year and how to access those funds. The third most asked question revolves around completing the annual occupancy certification, which can now be done verbally by phone through Celink’s IVR, or interactive voice response, system. Number four involves inquiries about property taxes or insurance, while the fifth most asked question involves changes to payment plans. RM: Tell me more about your IVR. MM: Our IVR is predictive. So, for example, if you’re calling, our IVR will recognize it’s you because it does the authentication electronically and predicts why you’re call- ing. The IVR menu is customized to you. If you just got a letter that said we need your occupancy certification, the IVR will start with that. Or, if you got a letter about your taxes, the IVR will start with taxes. We’re predicting why you’re calling, so it’s faster for the borrower. It’s a
—Marion McDougall, Celink CEO
better borrower experience to get that menu in the order that we believe is the reason for the call.
RM: HUD has implemented numerous reforms over the past year to benefit consumers. Which of these reforms will most impact improving the servicing process? MM: The most significant change is one I just mentioned, which is the ability to verify occupancy verbally, which HUD announced in Mortgagee Letter 2023-23 this past November. This change allows borrowers to have another avenue than just the mail. It’s a great convenience to the borrower and helps prevent loans from going into due and payable status, which you know, of course, causes concerns and stress that’s not needed. This has been huge. RM: Celink has been at the forefront of adopting tech- nologies that enhance servicing efficiencies. What can you share about these improvements? Is there anything new that’s under development that you can discuss? MM: We modernized our legacy system starting in 2019, which has resulted in some big wins. For example, we’re able to process line of credit (LOC) draw requests 60 percent faster compared with a few years ago. We also implemented a tool to make the loan assignment pro- cess more efficient. Ninety-seven percent of the loans that we service are assigned immediately after reaching 98 percent of the maximum claim amount (MCA), all through a technology tool that we deployed about a year and a half ago that helps us better manage timelines and obtain documents from our clients more quickly. Lastly, we recently expanded our IVR. The enhanced logic offers extensive options for borrowers. I mentioned that the IVR anticipates why the borrower is calling and then
From the Top continued on page 12
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 11
From the Top
From the Top continued from page 11
RM: Even with the education NRMLA strives to pro- vide, many loan officers don’t fully understand FHA’s policies and timelines that servicers must strictly follow. What words of wisdom would you like to share with our readers to help them better understand Celink’s role and responsibilities? MM: Celink wants to work with every borrower and their heirs to deliver the best solution for their situation. However, Celink must abide by program guidelines and timelines set forth by HUD and our clients; failure to do so will result in financial penalties. We encourage loan officers to make sure borrowers and heirs know that staying in touch with the servicer, especially if there is a default or when the borrower passes away, is key. Loan officers can help reiterate that communications from the servicer—mail, phone calls and emails—contain important information regarding their loan that may be time-sensitive and should not be ignored. Responding and acting timely when the servicer reaches out will provide a smoother customer experience and may prevent the loan from going into default unnecessarily. We can’t track if borrowers read their mail, but we do know that 70 to 80 percent of them open their emails. Our goal is to get as close to a 100 percent open rate as possible. Getting borrowers to look at the communications we send is critical. RM: How can loan officers make your job easier? MM: Borrowers often contact their loan officer with servicing questions because they’re considered a trusted adviser. However, loan officers must confirm the answers to borrower questions first and avoid guessing if they’re not sure. Answering servicing questions incorrectly, even with the best of intentions, is harmful and negatively impacts the borrower’s perception of the product and process. It’s best always to refer them back to us. We are the experts. When an event happens, we will know how to guide either the borrower or the heirs through that event.
allows for self-serve options. As of the end of May, 35 percent of the borrowers who call us choose a self-serve option, and that will continue to grow. Sixty percent of LOC draw requests go through a digitization process, meaning we don’t have to talk to the borrower. It’s all done electronically. RM: Where does artificial intelligence (AI) fit into these efforts? MM: LOC draws and the documents that need to be processed are handled through an AI process. In addi- tion, every month, we have 50,000 customer calls going through an AI scoring mechanism. The customer calls in, and the machine goes through all those calls and scores them based on about ten components. The AI assesses whether the call was done well and gives it a score. Any score below the threshold we’ve set, we then manually review. We don’t have the workforce to review 50,000 calls, but the AI machine can do that. We’re looking forward to leveraging generative AI for tasks like pre-call and post-call summarization, which will further enhance efficiency and the borrower experience. RM: What policy changes would you like to see adopted by the Federal Housing Administration (FHA) to help further improve the servicing experience for borrowers? MM: This doesn’t directly impact borrowers, but Ginnie Mae and the industry have been working on HECM Mortgage-Backed Securities (HMBS) 2.0. If it gets adopted, I believe more lenders will enter the market, which then will make the product available to more consumers. Perhaps the most important change I’d like to see adopted—one which I think would be close to your heart because NRMLA has been advocating for it—is to lower the upfront mortgage insurance pre- mium. Volumes would increase and more consumers would embrace the product. ( Editor’s note: HMBS 2.0 refers to a new securitization option Ginnie Mae is work- ing on that would allow HECMs with balances above 98 percent of MCA to be bought out of their existing securities and re-securitized into new pools. )
Darryl Hicks is NRMLA’s vice president of communications.
12 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
Proud Sponsor of NRMLA NATIONAL 2024 San Diego
We look forward to reconnecting at the conference.
Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to Credit Approval. For licensing information, go to: www.nmlsconsumeraccess.org Minnesota Residential Mortgage Originator Exemption MN-OX-1025894
457128253
CRMP: Across the Kitchen Table
Interest in Finance Leads to Career in Reverses A Chat With Christine Jensen, CRMP, Senior Vice President of Reverse Lending, Fairway Independent Mortgage Corp., Arvada, CO By M. Diane McCormick
CHRISTINE JENSEN BEGAN her career in finance after high school graduation as a teller in a financial institution “that you might have read about in the history books.” It was a savings and loan. For Jensen, a lifelong learner, it was a fortunate place to be.
get. I took every class offered. It was a great trajectory to get started on.” Today, Jensen turns her quest for knowledge toward the art of placing reverse mortgages within the bigger picture of retirement planning. By listening, learning and collaborating, she helps guide clients toward their dreams and aspirations. Building a Foundation In her ten years with the savings and loan, Jensen came to realize that banking products could help people
Christine Jensen
“They invested very heavily in educating their employees and giving them opportunities for advance- ment,” she says. “I gobbled up every opportunity I could
14 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
CRMP: Across the Kitchen Table
real estate. She learns and teaches, always intending to understand the intricacies of creating a comprehensive financial plan. As she tells her clients, “I can help you integrate the financing you select with your overall financial plan.” One couple recently came to her for a reverse mort- gage, expecting to stay in their current home. Early in the conversation, Jensen noticed the clues that they really wanted to find a new home, but they felt hemmed in by the price gap between their current home and average homes in their market. Jensen walked them through a HECM for Purchase and sent them to their real estate agent for guidance on pricing their current home and finding a replacement. The nuanced conversation touched on goals, health and finances. “I was able to listen for the clues on estate planning,” she says. “I was able to listen to the clues on pension planning. I was able to listen to the clues for investment advising—not that I am going to give investment advice, but I can pick up on what they are saying and understand the impact it has, and we can bring those other profes- sionals into the conversation.” Working With Reverses Jensen first encountered reverse mortgages after joining Cherry Creek Mortgage in 2001. In the rocky years of 2008 to 2010, while forward mortgages were “implod- ing around us,” she says, reverse mortgages were gaining steam. The Federal Housing Administration-insured HECM, especially, was growing stronger with built-in consumer protections and features that promoted its fit within long-term strategies. “The CRMP brings so much more credibility when people are trying to determine if I’m the one they want to work with.” —Christine Jensen, CRMP, senior vice president of Reverse Lending at Fairway Independent Mortgage Corp.
fulfill their financial plans and their dreams for savings, homeownership and retirement. When the savings and loan closed amid the industry collapse of the 1980s, she gravitated toward mortgage banking—her favorite part of the business because of its power to help clients build wealth through homeownership. “That’s the vantage point from which I approach the industry: helping people meet financial goals and build wealth,” she says. After a stint in mortgage servicing, where she learned the mechanics of mortgage operations, her heart led her to the planning, consulting and origination side. That is where she has been for more than 30 years. To Jensen, every reverse mortgage is a team effort, a huddle with clients, financial advisers, families and real estate agents. “The best decisions are decisions that are made when you have the input of all of the different folks who can bring expertise to the process,” she says. Working with other professionals means learning how their specialties dovetail with hers. She obtains insight by attending industry conferences in long-term care insurance, financial planning, legal issues and
CRMP continued on page 16
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 15
CRMP: Across the Kitchen Table
CRMP continued from page 15
After joining Fairway in 2015, Jensen learned the keys to integrating reverse mortgages into a compre- hensive retirement plan from financial planning experts Dr. Wade Pfau, Dr. Barry Sacks and Jamie Hopkins. She now specializes in reverse mortgages but keeps all options in mind, drawing on her extensive background in strate- gies to customize the ideal approach for each client. Jensen welcomes every client to a “sacred space,” where they can relieve their fears and review their goals. She gets to know them, their stories and their goals. There are open-ended questions, all asked over selections from the fully stocked office beverage center. “We start every consultation with a blank sheet of paper, a pen and a cup of coffee or the beverage of their choice,” Jensen says. “That is strategic. This is something my grandmother taught me. If we are sharing a bever- age together, there is already a social connection. In the American culture, if we are sitting down for a cup of coffee together, we are just going to chitchat.”
Jensen earned her CRMP in 2017, pursuing her passion to “continually invest in improving and enhanc- ing my understanding and my skills so I could be more valuable to my clients. “The CRMP brings so much more credibility when people are trying to determine if I’m the one they want to work with,” she says. “They see this as somebody who is invested. You do not have to be a CRMP to do this work, but I have gone beyond licensing.” That same spirit motivated her to earn the rigorous Certified Senior Advisor credential, building her profi- ciency in Medicare planning, senior care options, estate planning, dementia and Alzheimer’s care, as well as other areas affecting seniors in the United States. She draws inspiration from a lifetime of experience with older adults. She was close to her grandmother, who lived with her family when she could no longer live inde- pendently. To Jensen’s 11-year-old mind, it seemed that all families lived that way. When it was time to buy her own home, she and her husband found one for raising their family and someday accommodating her parents. That day came, and her parents lived with the family for seven years before their passing. “We had a gloriously chaotic life of living with seniors who have challenges and ailments and complications and Medicare plans,” she says. “From there, I wanted to learn better how to serve them.” Using Social Media Jensen’s social media posts and digital communications alert readers and listeners to the retirement planning tools and considerations at their fingertips. One video neatly explains the ebb and flow of retire- ment finances through a “three piggy banks” analogy. A recent blog post offered insights into reverse mort- gages for home repairs. In her Reimagining Retirement podcasts, Jensen con- verses with professionals on topics, including caring for a loved one with Alzheimer’s or finding an insurance agent with the tools to navigate Medicare options. “I want to help you get exposure to all of the dif- ferent ways you could reimagine what your retirement looks like,” she says. “Maybe it’s managing medical issues. Maybe it’s doing the things you didn’t know you
16 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
CRMP: Across the Kitchen Table
Being Active Jensen’s family was civically and politically active, and community involvement remains baked into her DNA. She is active in the local Chamber of Commerce and other business organizations. She founded a discussion group, Logic and Liberty, which talks about the found- ing documents of the U.S. such as the Declaration of Independence and the Articles of Confederation. “We’re a bunch of nerds, basically,” she says. Time will tell whether her work in reverse mortgages has made a difference in the lives of her clients. “I like to think that I have, indeed, had an impact, but that will be for other people and God to decide,” she says. “We start every consultation with a blank sheet of paper, a pen and a cup of coffee or the beverage of their choice. That is strategic. This is something my grandmother taught me.” —Christine Jensen, CRMP, senior vice president of Reverse Lending at Fairway Independent Mortgage Corp.
could do. Maybe it’s finding money to do some of the things you wanted to do. We interview people touching the lives of retirees in so many different categories so we can help our listeners reimagine what their retirement can look like.” Jensen cites the example of the financial planner who called because his client bordered on having a cash-flow problem that would have been exacerbated by putting the entire proceeds from the sale of her home into her next home. A reverse mortgage offered “a classic case of having her cake and eating it, too.” Another client, a freelance journalist in her 70s, wanted financial freedom to pursue projects of her choos- ing. Through a reverse mortgage, she acquired a line of credit from the “lazy asset” of her lovely home. “She has freedom in a way that she never had before,” Jensen says. “She can now do a couple of home projects. She is, interestingly, looking at writing an article about the usage of a reverse mortgage for the senior population, and she’s going to write it from the first-person perspective.” Jensen and her husband have four grown children and four grandchildren. All live in Arvada, CO. Together, they hike, ski, cook good meals and find new restaurants. Her favorite dish is “anything on the grill.” “We grill all year long, even in the snow,” she says.
M. Diane McCormick is a writer and editor based in York, PA.
NATIONWIDE REVERSE MORTGAGE FIELD SERVICE EXPERTS FOR OVER 30 YEARS
Inspections - Preservation - Insurance Loss Inspections - Violation Management - Vacant Property Registrations - Utility Management - REO Services - Special Services
www.nfronline.com
1.800.639.2151
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 17
SHARPENING YOUR SAW
20 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
WHEN REVERSE MORTGAGE professionals gather in San Diego later this month for NRMLA’s Annual Meeting & Expo, the organizers will want to hear what you do to improve your sales and what tips you might have for expanding your market. They also want to listen to and answer your questions as you seek to learn about how others excel at sales. That is the spirit behind much of the three-day meeting, particularly during a roundtable dedicated to taking questions and answers from the people who will be attending. “The loan officer roundtable NRMLA Annual Meeting Focuses on Improving Your Sales By Thomas A. Barstow
will be a discussion with anyone who is an active loan officer to talk about marketing, business tactics, sales, different software and lead-generation tools,” says Bruce Simmons, CRMP, a reverse mortgage specialist with American
Bruce Simmons
Liberty Mortgage, based in Colorado. “It is going to revolve around what people are doing to generate business.” Simmons, who participated in a similar session in 2023, will be one of several panelists who will run the roundtable that is one part of the meeting being held September 24–26, 2024. Over the three days, the meeting will include presentations from top government officials, such as Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon, and vari- ous networking and educational events. The roundtable was held this past year, too, and is expected to be well-attended. “It’s an open discussion for everybody. Anyone can pipe up,” Simmons says about the session that will last about two hours. “That is the best way to find out who is doing what.” As an example, Simmons says he might mention his radio show, Reverse Mortgage Radio , which runs 30 min- utes Saturday mornings in the Denver area.
Sharpening Your Saw continued on page 22
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 21
Sharpening Your Saw continued from page 21
“This year, I’m bringing friends from the AgeTech space to discuss senior housing of the future. Many don’t realize that we are already living in a Jetsons-like world because it looks different than what has been imagined over the years. We will take you on a journey through the home of the future—both inside and out.”
“Roughly half of my business this year is from the radio show,” Simmons says. Others will have stories and tips to offer, creating an opportunity for loan officers to learn what is work- ing in other parts of the country. “I love the roundtable stuff,”
Julia Gordon
Simmons says. “These are things happening across the country, but people might not be aware of them—dif- ferent ways to reach real estate agents or referral partners or direct-to-consumer ideas. We will talk about what is working and what is not.” Artificial Intelligence Simmons expects some discussion to center around arti- ficial intelligence (AI). And AI will be the topic of a sep- arate seminar led by Byron Torres, founder and CEO of Reachality, which focuses on AI solutions for companies. When he gave a talk during the 2023 Annual Meeting, he primarily spoke about what AI is and that it should be embraced and not feared, Torres says.
—Tara Ballman, executive director at the National Aging in Place Council
year, there were a lot of questions,” he says. “And this year, I am expecting a lot of questions, as well.” One question that usually comes up is about security and ensuring the information being used in AI is secure, he says. Despite some of the difficulties with AI, he empha- sizes the need for the reverse mortgage industry to embrace AI and technology to cater to the evolving needs of younger borrowers. “The reverse mortgage industry has to adapt to the new technologies, or Gen X is going to reject the prod- ucts,” he says.
This year, he intends to talk more about how to apply the technology. “Last year, everyone was still consumed with the micro rather than the macro,” Torres says. “This year, I am going to go deeper into it and lay out the potential.” For example, people who work
Underwriting/Operations Audience Q&A
Byron Torres
NRMLA’s earliest conferences featured the industry’s top direct endorsement underwriters who would field audience questions and share information on the most common questions from loan officers. At this year’s Annual Meeting, HUD Issues Committee Co-Chair and All Reverse Pro President Elly Johnson will moderate a session with Sarah Young of Mutual of Omaha Mortgage, Shirley Rand of PHH Mortgage/Liberty Reverse Mortgage, Carmalon Batiste of Traditional Mortgage Acceptance Corp., Laura Almohandis of Finance of America and Kelly McCabe of CrossCountry Mortgage. Elly Johnson
with reverse mortgages can learn to use AI to synthesize complex lending guidelines so they are easier for others to digest, Torres says. “This technology is moving fast. Now, people are seeing how it can help and what it can do,” he says. “How can we use AI to generate leads and qualified leads but also speed up the process for both the lenders and the borrowers to make it easier?” For reverse mortgages, there are opportunities to use AI to educate borrowers by having AI take and answer questions from consumers, he adds. His presentation will be about 30 minutes, with an additional 15 minutes for questions, Torres says. “Last
22 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
You can pre-submit questions to NRMLA’s Vice President of Communications Darryl Hicks at dhicks@ dworbell.com . If the panel selects your pre-submitted question for discussion, you will be entered into a raffle, but you must be present to win. The prizes are as follows: • First drawing: complimentary registration to the 2025 NRMLA Annual Meeting & Expo; • Second drawing: $20 Amazon gift card; and • Third drawing: $10 Starbucks card. Technology Advances and Aging in Place As more people decide to age in place, they can use advances in technology to help. That will be one of the points made during a presentation that will include Tara Ballman, executive director at the National Aging in Place Council (NAIPC). At the 2023 conference, Ballman spoke about senior communities of the future. “This year, I’m bringing friends from the AgeTech space to dis-
More about the Annual Meeting NRMLA’s Annual Meeting & Expo will be held from Tuesday, September 24, 2024, to Thursday, September 26, 2024, at The Hard Rock Hotel in San Diego, CA. The last time NRMLA held its Annual Meeting in San Diego was in 2018. The keynote speaker will be Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. This will be her third consecutive year speaking at NRMLA’s Annual Meeting. The meeting will also include a presentation by David Berenbaum, deputy assistant secretary for the U.S. Department of Housing and Urban Development’s Office of Housing Counseling, said NRMLA’s Vice President of Communications Darryl Hicks. For more information or to register, visit NRMLAonline.org .
cuss senior housing of the future,” Ballman says. “Many don’t realize that we are already living in a
Jetsons-like world because it looks different than what has been imag- ined over the years. We will take you on a journey through the home of the future—both inside and out.” Ballman points out that innovations continue to be developed. “Aging in place technology has come a long way since the ‘I’ve fallen and can’t get up’ systems,” she says. “Fall detection systems are hidden as chandeliers that look like they belong in Architectural Digest . Smart toilet seats can sense the second a person’s balance is off and becomes a fall risk. Toilets themselves analyze waste with every flush and track medical needs. As ‘hospital at home’ move- ments gain popularity, we will see these advances become more and more important for the care and well-being of our older adults.” Tara Ballman
University Bank
JOIN OUR TEAM TODAY
Visit our website to get started
www.university-bank.com/reverse
Thomas A. Barstow, senior editor of Reverse Mortgage , is a writer and editor based in Pennsylvania.
University Bank – Reverse Mortgage Division, Equal Housing Opportunity - NMLS 715685, 2015 Washtenaw Ave, Ann Arbor, MI 48104 – (www.nmlsconsumeraccess.org), Member FDIC that operates in various states. For a complete list of the states University Bank. can operate in please visit https:// www.university-bank.com/licensing.
REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024 23
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40Made with FlippingBook - Online magazine maker