Episode summary
Finance of America’s Jonathan Scarpati on shifting consumer behavior
HousingWire Daily
· · Hosts: Sarah Wheeler · Guests: Jonathan Scarpati
Summary
Jonathan Scarpati says the housing market has not simply slowed; it has fundamentally shifted as more homeowners stay put, age in place, and invest in their current homes rather than trade up. He argues that low first mortgages, higher home prices, and emotional attachment to established communities are keeping consumers in place longer than in past cycles.
That change is creating demand for renovation and liquidity solutions, but Scarpati says traditional products often do not fit the borrower’s goals. Cash-out refinances can be unattractive because homeowners do not want to give up low rates, while HELOCs can be limited by debt-to-income and payment concerns. The result, in his view, is a disconnect between the equity borrowers have and the options lenders have offered.
Scarpati says the best originators are adapting by leading with the borrower’s objective instead of a product. He points to solutions like HomeSafe Second, which let homeowners keep their existing first mortgage while accessing equity for upgrades, expenses, or flexibility. The broader takeaway, he says, is that lenders can still grow by meeting demand where it already exists, not by trying to create it.
Key takeaways
- Scarpati says the mortgage market has “fundamentally shifted” from mobility to aging in place and home improvement.
- He says low first mortgages and higher home prices are making many homeowners reluctant to move.
- Scarpati says cash-out refinances and HELOCs often do not fit borrowers who want liquidity without giving up their low-rate first mortgage.
- He argues that originators should start with the borrower’s goal, then match the product to the outcome.
- Scarpati says lenders can still grow by serving homeowners who want to stay, improve, and preserve financial flexibility.
Notable quotes
“it hasn't just slowed, it's really fundamentally shifted. You know, for a long time, the mortgage industry is built around movement, buying and selling”
“today, a lot of homeowners aren't moving like they used to. They're staying and they're aging in place”
“the conversation becomes less about selling alone and more about structuring a solution”
“today's bars, they're looking for both, right? They want to stay and improve their home. They want to keep their low mortgage and access capital”
“there is still a tremendous opportunity in our industry today. It's just tied to different behaviors, right”
How the episode opens
Welcome everyone. My guest today is Jonathan Scarpati, chief production officer at Finance of America Reverse to talk about the shift in consumer behavior that has homeowners staying in their homes longer and what that means for lenders. Jonathan, welcome to the podcast.
Thank you for having me today, Sarah. — It's great to have you on. Um let's start kind of broad, you know, big picture. What are you seeing in the market right now?
So, you know, one of the biggest things that we're seeing right now in the market, uh, is that it hasn't just slowed, it's really fundamentally shifted. You know, for a long time, the mortgage industry is built around movement, buying and selling. But today, a lot of homeowners aren't moving like they used to.
They're staying and they're aging in place. So once you begin to recognize that, you'll start to see that opportunity has not gone away. It's just showing up a little bit different than it has in the past.
I think that's a really interesting observation um and important if you're planning your business, right? So why do you think more homeowners are choosing the state right now?
There there are a few different factors that are driving it. Rates are a really big one. Um a lot of homeowners are sitting on historically low first mortgages and they're not willing to give that up.
and I don't blame them. Um, home prices are another big factor, right? Moving is not necessarily more affordable these days.
But beyond that, a lot of people actually like where they are. They've built equity. They've they're established in their communities.
So, instead of about thinking about their next home, they're thinking about how to make their current home work better for them.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- consumer behavior shift
- homeowners staying put
- mortgage lending
- housing market impact
- mortgage industry trends
Companies and tickers mentioned
- Finance of America
Watch the episode
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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