Unlocking 2025: How Reverse Mortgages Can Thrive with Forward Partnerships!

“Let’s cut to the chase: the easiest way to grasp this revolutionary program is through its purchase aspect,” he exclaimed. “We’ve overlooked that for too long. Many of us in the reverse mortgage game, myself included, have mistakenly labeled the reverse for purchase as challenging, mainly because we were conditioned to think of traditional refinance reverse mortgages.”

However, what makes the Home Equity Conversion Mortgage for Purchase (H4P) stand out is its simplicity, shattering the outdated stigmas that have long clung to this category.

“The reverse for purchase is nothing short of a game-changer,” he continued. “It empowers people to step into homeownership while alleviating most of the headaches families typically face with conventional reverse mortgages.”

Transforming the Narrative

Peter Sciandra, the executive vice president of reverse lending secondary marketing at Fairway Independent Mortgage Corp, echoed this sentiment. He recognizes that while some misconceptions still linger, a growing number of reverse mortgage professionals are stepping up their game, confidently articulating the incredible potential of the HECM product for eligible borrowers.

As a result, certain sectors of the industry have become somewhat insular, leading traditional mortgage professionals to dismiss reverse products as too specialized to warrant their attention.

“Our focus this year is all about simplification—not just for conventional mortgage lenders, but also for the broader public,” Sciandra stated. “Often, seniors navigating through counseling sessions and scrutinizing loan details can feel overwhelmed. This confusion may trigger hesitation, causing them to shy away from a product that could genuinely benefit them.”

He believes the industry has a responsibility to streamline the terminology used when discussing these products, making it easier for conventional lenders to enter the reverse mortgage arena. This might mean extending more support to these lenders than what’s currently on offer.

“Many forward originators are reluctant to dive into extensive training or qualifications for a product they might only handle occasionally,” Sciandra noted. “It’s on us as an industry to pinpoint the necessary changes that will empower forward originators, making them feel more at ease and enthusiastic about participating.”

An Exciting Shift

Shannon Robinson, who leads the reverse mortgage division at New American Funding (NAF), described the evolving collaborative spirit as “thrilling.” She anticipates that this momentum will only grow throughout 2025.

“The synergy is palpable, and we’re committed to nurturing this opportunity in the coming year,” she affirmed. “I’ve been actively engaging in the marketplace, collaborating closely with our forward leaders. I participate in all our monthly and weekly sales meetings with the leadership team, ensuring we maintain a tight-knit relationship here at New American Funding.”

Robinson has also taken part in regional sales rallies, where forward lending professionals gather, and the reverse division plays an active role in these initiatives.

“At these rallies—often attended by 100 or more loan officers—we have the chance to connect personally,” she explained. “We engage in breakout sessions, introduce ourselves, and discuss our clients’ needs and how we can meet them.”

“I’ve delivered numerous presentations at these regional meetings, showcasing our products and the chances for collaboration. It’s been an invaluable opportunity to foster teamwork and cultivate relationships across divisions.”