Reverse Mortgage Jan-Feb 2021

program goes forward as if there has been no election,” says David Horne, a NRMLA lobbyist based in Washington, DC. “And on the margins, ten or 15 percent that rely on policy/political appointees may slow up a little bit.” Horne was joined by fellow lobbyists Melody Fennel of Fennel Consulting LLC in Alexandria, VA, and Scott Olson, of Olson Advocacy Group in Arlington, VA, to offer insights into what the 2020 election will mean this year and beyond. They were panelists at the NRMLA 2020 Virtual Annual Meeting held a week after the November 3, 2020, election that put former Vice President Joe Biden on the path to become the 46th president of the U.S. While a lot of questions will remain until after the swear- ing in on January 20, they suggest that years of NRMLA officials working with elected leaders and career govern- ment workers should help when it comes to staying on top of any legislative changes affecting HECMs. In fact, Fennel, Olson and Horne agree that a Biden administration—like the Trump administration—would be supportive of the HECM program. But they also sug- gest that NRMLA will have to pay attention to the shifting political dynamics. The House While Democrats have retained control of the House, the narrower margins will make it difficult for them to pass sweeping legislation within that chamber, Olson and Horne say. To retain a majority, Democrats needed at least 218 seats, which it attained a week after the elec- tion. That margin was growing in the weeks afterward but not to the level seen after the 2018 election when Democrats won 235 seats. “Their running room has been narrowed,” says Olson. The Democrats would not be able to afford to lose as many votes as before, so that will make it more difficult to be aggressive with legislation. “What that means in prac- tice is it is a numbers game.” That shift also means that the ratios on vari- ous House committees will change, too, Olson adds. Maxine Waters (D-CA) will remain chair of the House Committee on Financial Services, which has oversight of the HECM program. NRMLA has developed strong relationships on the committee with elected officials, as well as career staff members, working closely on draft HECM legislation to ensure that bills stay on track. And he notes that in 2020, with split government, the committee did not produce a lot of legislation that was able to be adopted in the Senate. “We have a pretty good sense that we don’t have a runaway freight train in the House,” Olson says. “We expect them to continue to pay attention to HECM issues, but I don’t think there is anything that we should be worried about. And with diligence, I think that things should be OK.” Horne agrees that Democrats, with a smaller major- ity, will have difficulty being too aggressive but still might try. “There will be huge challenges to pass dra- matic legislation,” says Horne. “Nonetheless, the leader- ship has been very successful in passing legislation even with narrow margins.” He expects that legislation this year will be entered to appeal to both the more liberal wings and centrist wings of the party, and the industry will need to pay particu- lar attention to the details of overarching legislation that might have language on HECMs. “The biggest risk to the HECM program from Congress is if they pass a bigger bill and something small is in that bill that affects the HECM program,” Horne says. “The likelihood of something like that passing in the next Congress is less when the margin is less.” Of course, he adds, the legislation could include details on HECMs that are not opposed by the various sides, which also will be something to monitor. The Senate As for the Senate, Olson says the Republicans are a favorite to retain control, with Republicans having 50 seats going into the special election in Georgia on January 5. The Democrats hold 46 seats before the special election but two independents—Sen. Bernie Sanders (I-VT) and Sen. Angus S. King Jr. (I-ME)—caucus with the Democrats. Therefore, Vice President-Elect Kamala Harris would have the ability to break a tie and give Democrats a working majority—but only if the Democrats win those two seats. Fennel suggests that it might be likely that the Senate will remain in Republican control but that it is in no way a certainty. She suggests that the Georgia election will be like nothing the country has seen before, with the NowWhat continued on page 18 REVERSE MORTGAGE / JANUARY-FEBRUARY 2021 17