Episode summary
Preparing for Q1 growth in reverse mortgages
HousingWire Daily
· · 23 min · Hosts: Sarah Wheeler · Guests: Fraser Tod, Courtney Rozell
Summary
Reverse mortgages were presented as a flexible tool for older borrowers who need cash for retirement expenses, debt payoff, home renovations, or family support. The guests argued that loan officers often pigeonhole the product, but it can serve a wide range of borrowers age 55 and older who have home equity and may not qualify easily for conventional financing because of debt-to-income or payment constraints.
A major theme was how the product has changed and why the reverse mortgage label still creates resistance. The guests said the most powerful features are that monthly mortgage payments are not required, borrowers can still choose to make payments, and the loan is non-recourse. They emphasized that safety protections, including financial assessment in 2014, have improved the product, even if stigma remains from older perceptions.
The guests also pushed a proactive strategy for Q1: don’t wait for borrowers to ask. They said loan officers should work with training, marketing, and dedicated sales support from Finance of America, review customer databases, and identify likely opportunities now. They argued that with uncertainty in the market and an aging borrower base, reverse mortgages can help originators build longer-term relationships and create new business.
Key takeaways
- The guests said reverse mortgages can address retirement expenses, high-interest debt, renovations, and even family support for borrowers 55 and older.
- Fraser Tod said the most important feature is that borrowers do not have to make monthly mortgage payments, though they can choose to.
- Courtney Rozell said the product’s stigma is outdated and that financial assessment and other safeguards have made reverse mortgages safer.
- The guests said loan officers should proactively mine databases and start education now to be ready for Q1 business.
- Finance of America said its training, marketing, and dedicated sales teams can help originators get from onboarding to first loan quickly.
Notable quotes
“the flexibility of reverse mortgages and how loan officers can prepare now for business in Q1”
“a lot of them are looking at obviously retirement expenses and maybe things they didn't plan for”
“the reverse products, we have second lien options that don't have payments”
“You do not have to make monthly payments”
“there's a sticker shock cuz it's the correct word, but the the word reverse mortgage still carries some stigma”
How the episode opens
Welcome everyone. My guest today on this sponsored episode are Fraser Todd, vice president of sales strategy and pricing at Finance of America, and Courtney Riselle, manager of partner engagement at Finance of America, to talk about the flexibility of reverse mortgages and how loan officers can prepare now for business in Q1. Courtney and Fraser, welcome to the podcast.
Thank you. Excited to be here. — Us. — I'm so excited about this conversation. You know, um I love reverse and the opportunity that it it gives people, and I feel like, you know, still we are very uh it's underutilized in my opinion. So excited to kind of dive in with you two experts and find out what you're seeing here. So my first question is, where are you seeing loan officers use reverse mortgages most often?
You know, we we actually talk to brokers and loan originators um almost every day because we're in training and and doing things with them. And so they talk with us a lot about where our our borrowers are utilizing these. And you know, a lot of them are looking at obviously retirement expenses and maybe things they didn't plan for or um existing financial obligations, paying down high interest credit card debt, things like that, and other changing financial needs.
But there's also a lot of other people that are using it to build the retirement that they've been looking for for their whole life, right? Maybe they want to do some travel or maybe they want to build an ADU to help um with that monthly income. So we see a lot of diversity in how people are using the funds.
Yeah, and I think, you know, with reverse you similar to how if a veteran borrower comes into your office, um you think, oh, VA loans.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- reverse mortgages
- q1 growth preparation
- loan officer strategy
- sales strategy and pricing
- partner engagement
Companies and tickers mentioned
- Finance of America
Watch the episode
Watch “Preparing for Q1 growth in reverse mortgages” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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