EDUCATION HAS LONG been seen as a key to unlocking the market for reverse mortgages, with an emphasis on potential borrowers and referral partners, such as financial planners and real estate agents. Lenders aim to dispel lingering myths about reverse mortgage products and demonstrate the value they can bring to older homeowners, efforts that are starting to bear fruit, executives say. “I think the next five years are going to be very interesting for the reverse mortgage industry,” says Chris Downey, a senior vice president at The Federal Savings Bank and co-chair of NRMLA’s Education Committee. But reverse mortgage companies also are directing their educational efforts inward as they seek to broaden the ranks of originators and ensure their staff members are up to date on the latest products and technology. “Whether someone has been in the industry for over a decade or whether they are new to selling reverse mortgages, training and education are vital parts of their success,” says Laura Hanna, national director of change implementation and sales development at Finance of America Reverse (FAR). “They foster and grow their expertise, build trust with clients, help with career advancement and ensure we are all up to date on market changes, regulations and new products.” Companies also see training and education as integral to their efforts to recruit and retain staff, while creating a bigger salesforce for reverse mortgages. Several companies, for instance, have ramped up programs that expose forward lenders to the reverse world and build their comfort with the product. “There is a very good chance that a forward loan originator is going to be contacted by a previous customer who says, ‘Hey, I’m approaching retirement. I’m interested in learning more about a reverse mortgage. What can you tell me?’” says Amy Smith, senior vice president of reverse support and training at Fairway Independent Mortgage Corp. “If they don’t have at least the information to speak about it as an option, then their borrower may go someplace else.” Shifting to Reverse Knowledge of reverse mortgage products is critical for success in the industry. However, knowledge of the customer is equally, if not more, important, say executives involved in training. Reverse lenders serve a unique demographic, one protected by law. Effective training programs need to focus at least part of their attention on the characteristics of older borrowers, whose complex needs don’t always fit easily on a loan application. “You almost universally will run into estate planning questions, healthcare questions, so you need to be something of a jack-of-all-trades and know enough to identify an issue and bring in the right experts,” says Downey, who joined Chicago-based Federal Savings in July 2023 when it merged with his reverse company, Harbor Mortgage Solutions in Braintree, MA. Many lenders pick up those skills through direct experience. The Federal Savings Bank encourages forward originators to refer potential reverse clients to reverse Preparing for Now and the Future continued on page 22 Chris Downey Laura Hanna Amy Smith “You really need to make sure that you are providing all reverse team members with a steady stream of training on product and policy updates, on an equal level to any forward products. To retain reverse LOs, we need to show them they are valued as much as forward LOs.” —Amy Smith, senior vice president of reverse support and training at Fairway Independent Mortgage Corp. REVERSE MORTGAGE / JULY-AUGUST 2024 21
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