because he is celebrating a milestone with NRMLA in 2024. Scheper says he first became involved with NRMLA through another company 20 years ago, making him among the members that will celebrate an anniversary with NRMLA this year. (We are noting NRMLA anniversaries in five-year increments—2019, 2014, 2009 and 2004.) Some of these members discuss how the industry has evolved since they joined and what they see as the opportunities ahead, especially after a difficult 2023. “The reverse mortgage industry, as well as conventional residential mortgage lending and financial services in general, has changed dramatically over the last two decades,” says Chris Downey, senior vice president of The Federal Savings Bank, which bought Harbor Mortgage Solutions in 2023. Harbor Mortgage Solutions became a NRMLA member in 2004. “Most of this has been in response to market and regulatory changes, which I will argue have, overall, improved our industry and product. In fact, without some of these changes and improvements, the reverse mortgage program itself may not have survived.” Changes and Opportunities Scott Harmes, CRMP, national manager of C2 Reverse, agrees that many of the changes over the years have been positive, such as adding protections for nonborrowing spouses and the requirements that borrowers undergo financial assessments before taking out a HECM. “They are important—both in protecting our borrowers and improving the performance of the HECM program,” says Harmes, who first joined NRMLA in 2014. Along the way, the industry also innovated, developing the proprietary reverse mortgage market. “That has greatly improved our ability to serve owners of very high-value homes.” Like Scheper, Harmes sees the demographic shifts as a good place to look for new opportunities. “Demographics are creating a more favorable environment for reverse mortgages,” Harmes says. “By 2026, every Baby Boomer will be 62, making them our primary demographic. A high percentage of Baby Boomers are carrying a mortgage into retirement.” For most people, a mortgage’s principal and interest (P&I) payment is their biggest monthly expense, which can strain budgets, he says. “A reverse mortgage can extinguish that P&I payment and relieve that cash-flow stress.” Milestones continued on page 30 Chris Downey Scott Harmes REVERSE MORTGAGE / JANUARY-FEBRUARY 2024 29
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