Bridging the Gap: Reverse Mortgage Experts Meet Forward Lending Allies
In the ever-evolving landscape of the mortgage industry, there’s a fascinating movement underway. Over the past year, professionals from the reverse mortgage sector have been stepping up their game, actively seeking to forge stronger connections with their counterparts in the forward mortgage realm. This growing collaboration hasn’t gone unnoticed—forward mortgage companies, especially amid the current high interest rates, are beginning to recognize the immense potential of incorporating reverse mortgages into their offerings.
While some forward lenders have made bold moves to acquire reverse mortgage divisions and seamlessly integrate them into their operations, others are focusing on enhancing their existing reverse mortgage programs. Meanwhile, dedicated reverse-only firms are striving to establish solid partnerships with the much larger forward mortgage industry.
At this year’s Mortgage Bankers Association (MBA) Annual Convention and Expo, a notable gathering of reverse mortgage experts showcased their dedication to deepening ties with forward professionals. We had the chance to chat with some of these industry leaders to explore their insights and experiences.
Building Bridges at the Conference
One key player in this initiative is Jim Cory, the managing director of reverse mortgages at Guild Mortgage. His unique position as the newly elected co-chair of the National Reverse Mortgage Lenders Association (NRMLA) amplifies his influence. Cory shared that NRMLA is set on prioritizing the visibility of reverse mortgages, with outreach at industry events being a crucial part of their strategy.
When asked about the willingness of forward mortgage professionals to engage on reverse mortgage topics, Cory expressed optimism. “The atmosphere is much more receptive than it has been in years,” he noted. “We’ve got a new wave of influential players stepping in, and that’s fostering a more open dialogue. The MBA’s growing interest in reverse mortgages is a perfect match for this mission.”
This year, the MBA event in Denver marked a significant increase in reverse mortgage representation. Cory pointed out that last year, reverse lenders were noticeably absent from the exhibit hall, but this time around, one prominent reverse lender showcased their offerings, and another sponsored the event, highlighting a meaningful step forward.
Finance of America (FOA) made waves with their booth presence. Ashley Smith, the company’s senior vice president of brand marketing and strategic communications, remarked that conversations around home equity were prevalent, making it easy for FOA representatives to engage attendees.
“We’ve definitely observed a surge in interest,” Smith stated. “Our booth attracted considerable foot traffic, and our account executives engaged in impactful discussions. Attendees were particularly intrigued by our HomeSafe Second product, which many were hearing about for the first time.”
HomeSafe Second stands out as FOA’s proprietary reverse mortgage product, currently the only second-lien reverse mortgage on the market. Since its reintroduction earlier this year, it has been a focal point of FOA’s outreach efforts.
“It’s the only closed-end second on the market that eliminates the need for monthly payments, effectively meeting numerous consumer needs,” Smith explained. “The novelty of discussing a product that fills existing gaps in mainstream offerings has certainly piqued interest.”
But it’s not just reverse lenders who are eager to make connections. Smith noted that forward mortgage companies are also keen to engage with this previously niche product. “The atmosphere suggests a newfound openness to exploring reverse mortgage options,” she said.
Broadening the Network
Longbridge Financial took a proactive approach at this year’s MBA event, stepping up with a sponsorship presence. The company, which is committed to strengthening its broker partnerships, aimed to spark conversations with major forward lenders.
“Our objective at the MBA is to connect with as many of these lenders as possible,” said Adrian Prieto, senior vice president of wholesale at Longbridge, during an on-site interview. “Whether it’s a basic overview of reverse mortgages or discussing potential opportunities within their servicing portfolios, every conversation matters.”
Despite the positive strides, there remains a noticeable gap in reverse mortgage representation at the event, attributed to various challenges. Prieto acknowledged that securing meetings with key industry players is highly competitive but emphasized that these initial interactions are crucial for establishing lasting relationships.
Smith echoed this sentiment, recognizing that while their booth generated productive discussions—especially around FOA’s unique product—the reverse mortgage sector still has work to do to capture more attention from the forward mortgage side. “Our presence at the event was about fostering new relationships and initiating deeper, strategic conversations about how our products can be integrated into the growth strategies of lenders across the country looking to diversify,” she concluded.