Reverse Mortgage magazine Nov-Dec 2020

Editor’s Note: This article is part of a series through 2020 in which Reverse Mortgage is examining different regions of the country. This issue focuses on the West. THE COVID-19 PANDEMIC has accelerated many trends that were under way before the virus ever struck the U.S., and one of those trends was the flow of people out of California . Reverse lenders in the western U.S. say Golden State retirees have been looking to escape higher taxes and embrace a lower cost of living in places, like Arizona and Idaho. Many transplants are leaning on the HECM for Purchase, which allows them to put down less cash and still afford the homes they want. The regional trend has helped keep reverse lenders busy despite an initial slowdown in the early days of the COVID-19 pandemic. Lenders also have seen greater interest from adult children looking for ways to finance home care for their parents—another trend that has gath- ered speed during the pandemic. Among the biggest wildcards in the market is the presidential election. Elections typically spur caution among borrowers. But people also may be looking to HECMs as a tool for insulating their portfolios against stock market swings that follow the election results, just as they did during the market seesaw of the spring. While at times it has been difficult to meet with clients, the trends are likely to fuel continued growth in HECMs, says Desmond Lenz, director of American Pacific Reverse Mortgage Group, a division of American Pacific Mortgage based in Roseville, CA. His company was aiming for 20 percent growth this year. Despite a slow spring, it is on pace for 11 percent and adjusting to the pandemic-influenced sales process. Lenders continue to carry masks, gloves, wipes, sanitizer and extra pens. “We’ll follow the protocols for the rest of the year and into next year until you can definitely say it is safe to meet under the old, normal circumstances,” Lenz says. “Clients for the most part are okay with it. You want to do what you can to protect them.” Eyes on Growth American Advisors Group also rang in 2020 with plans to grow, hinging, in part, on hiring new loan officers, says Melanie Parks, vice president of national field sales cov- ering the western U.S. for AAG. COVID-19 delayed the addition of new professionals. But it did not slow growth. “We’ve been outperforming and increasing production exponen- tially so far in 2020, starting really in March through June,” Parks says, citing the ups and downs of the stock market as a leading cause. The company also resumed hir- ing, though training and coaching now takes place via Zoom calls, Parks says. “We’re looking to continue that growth through the end of the year.” For Kyle Buck, a CRMP for Mutual of Omaha Reverse Mortgage in Idaho, the pandemic complicated face-to-face meetings, the method preferred by him and his clients. “A lot of people in our area like to work with local lenders, not somebody over the phone,” says Buck, who is based in Eagle, a suburb of Boise. Closing Time Deals Increase as Borrowers Seek Security in the West By Joel Berg Desmond Lenz Melanie Parks 28 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2020