“They take seriously quality information that you bring to their attention; so, be clear about what the issue is, what the impact is, and why it’s good to say yes or no to a particular subject,” Kirkpatrick says. Look for vehicles. The legislative process can be difficult for legislation that addresses a single issue unless it is an issue in the news. “Your best chance for a smaller, specific thing is to get it attached to a larger bill, which is moving,” says Kirkpatrick, adding that this approach is what worked in Massachusetts. Advocates there succeeded in appending the counsel- ing bill to a larger, must-pass spending bill. Work together. Reverse mortgage professionals can count on NRMLA for advocacy at the federal level, a source of the most significant policies affecting the industry. In state capitals, they can find additional allies in state-level associations for mortgage bankers. “We’re the ones who have, or should have, that relationship with the legislators and the regulators,” Sousa says. State associations often host so-called “advocacy days,” when members fan out across a state capitol building to meet with their legislators and discuss their industry. Downey and Kirkpatrick took part in several advo- cacy days for the Massachusetts association, Sousa says. The two men explained the value of reverse mortgages and how the products positively impact seniors. “Whether you are telling the story of a neighbor or a loved one or a borrower, a consumer whom you helped, you’re giving real-life scenarios, and that’s important,” Sousa says. Reverse mortgage professionals also can look for allies. In Massachusetts, counselors proved to be effective advo- cates for ending the requirement for in-person meetings, Kirkpatrick notes. “They were eager to see it revised.” Broaden the debate. Legislation has a better chance of passing if it dovetails with existing concerns. In Massachusetts, for example, advocates eventually came to understand that their issue involved questions of dispa- rate impact, a phrase that indicates a policy negatively affects a protected class.
The requirement for in-person counseling had a disparate impact on people with disabilities. “Looking back on it, if this issue ever comes up again, that would be a strong argument to discourage any type of laws like the one we’ve been talking about,” Downey says. The reverse mortgage itself, meanwhile, aligns with what have been broader worries about retirement savings. In a 2023 Gallup survey of U.S. adults, less than half, or 43 percent, expected to have enough savings to retire comfortably. At the same time, states have been ramping up programs to offer individual retirement accounts to workers who lack access to job-based savings programs, indicating the problem is on state agendas. As of March 31, 2024, 19 states have established such programs, and many of the rest are debating them, according to the Center for Retirement Initiatives at Georgetown University in Washington, DC. “The number one fear across the country, unques- tionably, is the fear of running out of money in retire- ment,” Downey says. A reverse mortgage, which can unlock home equity, should be part of the discussion. “It is the home equity line of the future for older Americans,” he adds. “But we’re not there yet.”
Joel Berg is a writer and editor based in Pennsylvania.
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