The National Reverse Mortgage Lenders Association (NRMLA) concluded the 2024 edition of its Annual Meeting and Expo on Thursday afternoon. Those in attendance told HousingWire’s Reverse Mortgage Daily (RMD) that the event provided ample opportunity for networking and educational content while boosting hopes that the industry can grow in the coming years.
Different kinds of attendees — including loan originators, brokers and vendors — came away from the event with different messages. Vendors were pleased at the engagement with current and potential business partners, while originators and brokers lauded the educational content and the presence of housing leaders from the U.S. Department of Housing and Urban Development (HUD).
But others, including longtime industry veterans, also said they detected an energy at the event.
‘Insightful and inspiring’
“The conference here in 2024 in San Diego has had a new mood and a new energy, kind of a renewed energy to take new ground in the mortgage base,” said George Morales, national sales director with Mortgage Cadence. “You can feel it amongst the attendees and the leadership at NRMLA, and amongst the lenders that are being represented here. It’s really been insightful and inspiring to be part of this conference.”
Christina Harmes Hika, a San Diego-based reverse mortgage professional with Reverse Loan Solutions, found herself energized by the conference material.
“It’s always really great to connect with others in the industry,” she said. “For example, in the session we just attended with underwriters, it was encouraging to hear how they approach their work with the mindset of approving files that should be approved, rather than trying to disqualify them. Coming from the forward world, where underwriters often operated similarly, it’s refreshing to see that approach here as well.”
Harmes Hika also singled out the presence from HUD, as Federal Housing Administration (FHA) Commissioner Julia Gordon and housing counseling division head David Berenbaum addressed the audience on-site.
“It’s always valuable to gain clarity on what’s actually a HUD guideline versus other requirements,” she said. “Some people in the room might think, ‘That’s just the way they do it,’ but in reality, these are HUD guidelines we all have to comply with.”
Educational material
Glen Smart and Robin Loomis are a husband-and-wife duo of Arizona-based reverse mortgage professionals who were previously profiled by RMD. Each of them approached the event from the perspective of originators and found value in the educational content.
“We always enjoy coming here because meeting with our vendors gives us valuable insights,“ Smart said. “Even though we’re long-time veterans of the industry, every time we attend, we pick up little nuggets of information that we can take back and apply in our day-to-day operations.”
Loomis concurred, specifically pointing out content related to servicing as particularly helpful for her business.
“One of my favorite aspects is everything related to servicing. I really enjoy learning how to better communicate with both our clients and the servicers, so we can identify and address potential issues early on, preventing problems for our clients down the road,” she said.
Connection opportunities
Megan Awalt, vice president of reverse title and escrow company Allegiant Reverse Services (ARS), took the most value from connecting with business partners. This is particularly helpful for her since remote work has become so much more common.
“The conference has been great,” she said. “It’s always a great opportunity for us to reconnect with industry partners and customers, and to see people face to face, especially since we don’t get to visit offices or travel much anymore with so many people working remotely. This really feels like our best and only chance to see everyone in person.”
Tane Cabe, a former reverse mortgage division leader and current proprietor of the educational product HECM Toolbox, said there are few other opportunities to communicate with such a potentially receptive audience.
“I didn’t know what to expect since this is actually my first NRMLA conference, and I’ve been in reverse mortgages since ’04 and mortgages since ’93,” Cabe said. “The receptivity has been amazing. The decision to come here, have an exhibit table, and talk to people about what we’re trying to accomplish in the industry has been awesome.”
Room for growth
Ryan Ogata, who leads the reverse mortgage operation at Rate, said he found the event productive but hopes for more growth in the future. He also appreciated what he called the “coopetition” of other lenders in the space, with whom he is competing but who also are providers of good information.
“Yes, we are competitors, but at the same time, even a big player like us at Rate only accounts for a fraction of the forward mortgage market,” he said. “So, while we’re a huge player, there’s still a vast market opportunity out there. The independents cooperate while competing because they’re all going after that remaining 97% of business.”
The reverse mortgage dynamic is different, however, since even longstanding players understand the need for some kind of catalyst to kick the business into a higher gear.
“Interest rates might help in the short term, but they won’t save the industry,” Ogata said. “We need to sell the product to more customers. A HECM-to-HECM refinance may generate immediate revenue, but it’s still targeting the same customer who already has the product.
“We need to expand beyond the current 2% market penetration, as recycling that percentage over and over doesn’t move the needle for long-term growth.”
While I could not attend, reports are coming in about the Convention. If true, one myth presented at the convention was that last year, H4P endorsements did not hit 5,000. The listener said that the statement made it seem like H4P endorsements normally are annually greater than 5,000. In what fiscal year has H4P ever been over 2,654? It seems like H4P is not a sleeping giant but a mythical giant of immeasurable proportions.
As to its potential, H4P has been overblown from its start over 15 years ago. H4P growth potential is like the fish that got away, the Loche Ness Monster, Big Foot, and the Three Amigos prequel; you want to believe all the stories but “they are a bridge too far.” But boy, the H4P lore is terrific and the great thing about it, it grows year by year. Too bad the facts will not line up with the breathtaking lore.
In 11 months so far this fiscal year, the H4P endorsement total is 1,540 which is an average 140 H4P endorsements per month. If my crystal ball is working correctly that means the likelihood of total H4P endorsements reaching 1,800 is about the same as the Chicago White Sox winning the World Series in 2024. The only question is if September 30, 2024 will end with the all-time H4P endorsement total exceeding 31,999. Right now it sits at 31,811 and yet the highest total H4p endorsment count for any month in this fiscal year is October 2023 with 179 H4P endorsements. Last month that total was just 136 H4P endorsements.
While the H4P endorsements for this fiscal year will exceed the total H4P endorsements for the first four fiscal years of H4P existence, it is most likely to end up as the fifth worst year for H4P endorsements out of its almost 16 fiscal year existence. Fiscal year 2017 is its all time high at 2,654 H4P endorsements.