Financial Assessment will soon be here in full force. No doubt, it’s a big hurdle for the industry, but it’s certainly not draconian, as I’ve heard numerous people say over the last few months. Will FA negatively impact our industry in the long run? No, I don’t believe so.

I believe reactions and responses to the new guidelines have been unreasonably negative. The anticipation during this lengthy waiting period has left people with a lot of time to analyze all the ways that FA will hurt their business. The conversations within the industry have festered, leaving many in an atmosphere of glumness. If the timeline had been quicker, chances are the industry would have faced it head on like we have every other change. We would have adjusted our approach and moved forward in a more constructive manner.

According to many news outlets, delinquencies of taxes and insurance have been a topic of conversation over the last number of years. With FA almost in play, I see this as a significant fix for T&I anxieties. Although the current adjustments implemented through FA may not be the exact solution I would have formalized, I applaud HUD for its robust efforts in this endeavor.

In the long run, FA will benefit all of us by ensuring that borrowers who would benefit from downsizing or considering alternate housing situations do so, instead of taking on a liability they cannot sustain.

In addition to protecting borrowers, FA will level the playing field for responsible loan officers. Those who have always tried to help the borrower make the best decision for their situation have already been asking many of the same questions FA seeks to answer. Those loan officers for whom “get a reverse mortgage” was the right answer for all borrowers, without concern for the individual borrower’s financial situation, will see a direct impact on their business. FA will raise the caliber of reverse loan officers as a whole.

I truly see this as a benefit to career-minded originators. This newly defined reverse mortgage is more professional, and will not disproportionately affect people in it for the long run, even if the short run will be challenging. I believe that improving the reputation of this product, while establishing a healthier industry brand, is a worthy result of FA.

A reverse mortgage is a great creation that has been seriously misunderstood and misrepresented. We have all read how the media sensationalizes any negative aspect of a “reverse mortgage gone wrong” simply because they have deemed it newsworthy without any facts. What about the hundreds of thousands of reverse mortgages that have positively changed people’s lives? That story is rarely told.

The reverse mortgage industry, led by NRMLA, has faithfully worked to resolve issues during turbulent times in our product’s history. They don’t get a fraction of the credit they deserve and that is a disappointment. With the country aging every day, the potential reverse mortgage market is bigger today than it was yesterday, and it will continue to grow. Those of us who truly believe in this industry will continue to thrive, without question. In the coming years, I suggest we work with HUD to tweak new underwriting models and strive to be the best professionals in this industry. If this market is going to take off the way it really should, the next 12 months will be critical.