From his favorite TV show and his first car to his thoughts about the reverse mortgage market, we get the facts from Ted Tozer, President of Ginnie Mae, in this month’s edition of The Hot Seat.
Ten years from now I hope that the changes made at Ginnie Mae that have occurred during my tenure have been institutionalized so that Ginnie Mae continues to be a major factor in the mortgage industry.
My favorite vacation was a week in St. Simons Island, Georgia, to enjoy time with my family away from all the hustle and bustle of the modern work world.
My first car was a 1979 Mercury Cougar.
If I could meet anyone, past or present, it would be Abraham Lincoln. I would enjoy observing how he was able to motivate and unify his cabinet on very divisive issues.
My favorite movie is Goodbye, Mr. Chips, because it shows how you can make an impact in small ways, even if you don’t realize you are making a difference.
I never miss an episode of Jeopardy!
When I was younger I wanted to find a way to make the world a little better.
Every morning I read the paper and have breakfast with my wife.
My first job was as a corporate accountant.
My grandfather taught me how to treat people properly and be a positive influence. He was a community banker and was willing to take a chance on small business owners so they could have a positive impact on the community.
My favorite time of the day is first thing in the morning. Everything is quiet and you can relax and think about the day to come.
The best lesson I’ve ever learned was to treat people like you would like to be treated.
My favorite books are the early ones by Tom Clancy.
For success I have sacrificed time with my family.
If I could time travel, I would like to meet Abraham Lincoln. It’s fascinating to read how he dealt with confrontations and adversaries in order to achieve his goals. His people skills were tremendous, especially in handling then-Secretary of State William Seward. Lincoln and Seward both wanted to be the Republican nominee for President of the United States. However, Lincoln defeated Seward. Initially, the two had a rather contentious relationship, but Seward went on to become one of Lincoln’s staunchest allies.
The biggest challenge in the industry is how to make reverse mortgages more of a mainstream product. That’s important because no organization wants to be perceived as taking advantage of senior citizens or their heirs. You can help prevent this through more education, so that borrowers and their heirs know exactly what they are agreeing to with a reverse mortgage. You have to make the borrowers and lenders feel more comfortable with the product and potential headline risk.
The future of reverse mortgages is interesting. The program could be very important in the future, given that the majority of consumers have little savings for retirement and they are living longer. Their home is often their biggest asset. However, it’s critical that we have a program that makes everyone—lenders and borrowers—comfortable, and that borrowers understand the program and whether or not it’s a good fit for them.
The greatest setback for our industry is borrowers not thoroughly understanding that they have to pay the taxes and insurance on the property. If they don’t take that responsibility, foreclosure is inevitable.
Ten years from now the reverse mortgage industry will be a major consideration in retirement planning.
People should seek a career in the reverse mortgage industry because the reverse mortgage product should become a main part of an individual’s retirement plan.
I am optimistic about the reverse mortgage industry because we have come a long way in terms of understanding how we can make the program better. Now, we just have to move forward and make this a truly impactful program for future seniors.
Reverse mortgage professionals can best support the public image of reverse mortgages by continuing to educate borrowers about the realities of the reverse mortgage program. It’s a good program that can help many, many borrowers, but they need to understand the consequences and the realities of getting a reverse mortgage.
The most important thing seniors should understand about reverse mortgages is that it is a way to use the equity in their home to supplement their other sources of retirement income, but keeping in mind the costs of maintaining and owning their home will not go down. Seniors should seriously look at selling their home instead of taking out a reverse mortgage if they will be in a tough economic situation even with a monthly draw from their reverse mortgage line of credit.
