Reverse

Last Word: So Many Shades of Gray

Written by Anneta A. Pope, as originally published in The Reverse Review.

Reverse mortgages are characterized by some as a product and by others as a service. Whatever your position, there is one important question all of us must ask: How well do we really know our client?

Let’s begin with a term that refers to the study of people of a certain age: gerontology. This is defined by Merriam-Webster as “the scientific study of old age and the process of becoming old.” The word “gerontology”—and its relative, “geriatric”—is derived from the Greek word geros, which means “old man,” able bodied, upstanding and strong. Interesting how only a portion of this meaning is associated with the modern definition of “geriatric” and the stereotypes attached to it.

But it’s not just the terminology that’s an issue; underlying attitudes about aging need to be addressed. Culturally, we can’t seem to achieve a synthesis of the positive aspects (wisdom, life experience, worldliness, spiritual growth) and negative aspects (physical decline, the greater possibility of illness) of aging. Longevity carries with it many benefits, but as a director for AARP once noted, “Everyone wants to live longer, but no one wants to be old.”

For many, conventional mortgages elicit positive images of the American Dream realized—the start of a family, dreams for the future, a new home for gatherings with family and friends. Reverse mortgages, on the other hand, are often viewed as a solution—and a solution implies a problem.

But I believe reverse mortgages are more than that. I think they represent another dimension of the American dream—one that depicts a comfortable and fulfilling retirement. Older Americans today are vibrant, young at heart and full of life. For them, a reverse mortgage is the start of a new chapter. As professionals who cater to an older demographic, it’s important that we recognize this and rid ourselves of ageist prejudices. We must understand how aging Americans live in today’s world.

For one, they are increasingly tech-savvy. A Pew Study reports that 59 percent of people over age 65 use technology regularly. Nearly 60 percent are active online, and approximately 71 percent of seniors between 65 and 75 log on daily. After all, the very technology we are using was developed by baby boomers Steve Wozniak and Bill Gates.

Another reality for this demographic is divorce. Divorce rates in the U.S. are declining for couples in their 30s and 40s, but they have jumped for couples in their 50s and 60s. Researchers attribute this to several factors including human longevity and vitality, women’s increased financial independence, and new drugs and therapies that allow for healthy, continued sexual activity and intimacy.

The rise of what has been coined “gray divorce” has led to a boom in online dating sites for older adults, increased participation in physical activities, sports and travel programs for singles. But for our purposes it’s important to note that divorce later in life can lead to the splitting of assets and creation of debt. As earning years come to an end and the comfort of a joint retirement fund is abolished, some divorced seniors can experience angst over what their financial picture will look like in retirement.

Older Americans today face challenges and participate in activities that were unknown to previous generations. By developing a greater understanding of what of their experiences, and greater empathy for the struggles they face, reverse mortgage professionals will be better equipped to serve their borrowers.

Remember that our borrowers are the same hope-filled people who once signed for a conventional mortgage as they began their journey through adulthood. They do not want to be defined by their age, but by their accomplishments, contributions and character. They still have dreams and goals as they navigate life ahead, and it’s our job to help make sure they are realized.

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