The National Reverse Mortgage Lenders Association (NRMLA) kicked off its Annual Convention & Expo on Tuesday in San Antonio with some practical advice for originators who are looking to close more deals in a rate-sensitive environment.
Reverse mortgage production has shifted in 2026 as the majority of borrowers are now using proprietary products rather than federally insured Home Equity Conversion Mortgages (HECMs). But regardless of the product being used, experts stressed creative problem-solving, proactive communication, financial planner relationships and next-level education as ways for loan officers to distinguish themselves in a difficult market.
Dan Hultquist on solving short-to-close situations
Dan Hultquist, co-founder of REVERSE plus and director of reverse mortgage communications at Movement Mortgage, focused his presentation on transactions that are short to close — when the proceeds don’t cover the required payoffs and closing costs.
Common reasons why a borrower needs to bring more money to the table include lower principal limit factors tied to higher mortgage rates, borrowers who have refinanced repeatedly and the required life expectancy set-aside (LESA) for HECMs. He advised loan officers to consider different solutions for the level of severity.
When borrowers are short to close by a small amount like a few thousand dollars, a potential solution is to schedule their closing within six months of the borrower’s next birthday, so they “age up” and qualify for additional proceeds and/or a smaller LESA.
For borrowers who are short to close by a larger amount, shifting from a HECM to a proprietary loan or a second-lien product can make more sense as it eliminates the need for an upfront mortgage insurance premium. Additionally, the LO might look to persuade the borrower to dip into their retirement savings or obtain gift funds from a relative, since the elimination of the monthly mortgage payment may help them recover that sum over time.
Hultquist said he’s seen deals that are short to close by more than $100,000 saved in this fashion.
When a borrower is short to close specifically because of the LESA, property tax exemptions may provide a way forward. With HECM transactions, Hultquist noted that the Department of Housing and Urban Development (HUD) does not have a flat discount on taxable assets. While 15% is the default discount, the client’s actual tax rate can be used, potentially saving money.
Shopping for a new homeowners insurance policy with a lower deductible should also be looked at. “Your insurance company, they know that seniors don’t shop. Guess what happens to their insurance premiums every year? They keep going up until they shop,” Hultquist remarked.
John Luddy on the power of questions
John Luddy, senior vice president at Supreme Lending, has spent 25-plus years exclusively originating reverse mortgages. Over the course of thousands of conversations, he’s identified some key questions to ask of borrowers, spouses and lead sources at the start of the transaction.
The first question Luddy asks every client is, “How did you get my name?” The answer can tell him whether paid advertising campaigns are working.
“Advertising is the empty well that will take as many buckets of your money as you want to put into it,” he said. “You might feel good seeing your name on the marquee somewhere, but if it’s not drawing results, you’re wasting money.”
The same question also helps him identify who to call if a borrower stalls. Many clients, Luddy said, hesitate before closing as they look for an alternative. But lead sources like attorneys, financial planners or accountants “can be a little bolder” in their interactions than an originator, so they may be able to nudge the client across the finish line.
With lead sources, Luddy’s key question is, “What can I do to earn your business?” Real estate agents, for example, want their phone calls to be returned and for the LO to demonstrate deep product knowledge, while financial planners want any loan to fit into their existing strategy with a client.
Banks that don’t offer reverse mortgages can be a rich source of leads due to customers who are denied for other types of credit. And Luddy said bank branch managers will send repeat referral business if there’s no surprises in the reverse mortgage process.
He also urged the audience to consider borrower disabilities, such as hearing loss, as a potential hurdle.
“If they were a veteran, if they worked in manufacturing, if they worked in construction, or if they’re over 62, they may be suffering from hearing loss,” he said. “They’re not going to feel comfortable moving forward if they only understand every third word.”
Ryan Ponsford on the psychology of sales
Ryan Ponsford of Equity Wealth Academy, who’s well known to the NRMLA audience, argued that psychology matters more than math in reverse mortgage sales, even when dealing with financial advisers to capture more business.
Originators should discuss voluntary payments and the lack of a prepayment penalty for reverse mortgages. This gives borrowers a better sense of control over their financial responsibilities.
When speaking with business partners, don’t ask for referrals, which Ponsford called “transactional.” Instead, ask for introductions.
“An introduction is different than a referral because an introduction done right is a transfer of trust. Somebody that is trusted is transferring their trust to you,” he explained.
Financial advisers, he said, should leave conversations with an understanding that reverse mortgages apply to more people than they realize and that homeowners should consider them earlier in life.
Ponsford recommended three questions to ask advisers when attempting to forge a referral relationship.
- How do you currently incorporate housing wealth into retirement plans?
- What are your clients’ greatest challenges as they approach retirement?
- What can I do to add value to your business?
And while psychology means a lot, it doesn’t mean everything. For example, the compounding growth feature of a reverse mortgage line of credit is essential for LOs to comprehend before they approach advisers. “If you can’t explain how line-of-credit growth works, you’re a nonstarter in the financial solutions industry,” Ponsford said.
Scott Harmes on the value of the CRMP
Scott Harmes, national manager of reverse at C2 Financial — and his daughter Christina Harmes of Barrett Financial — are on the short list of Certified Reverse Mortgage Professionals (CRMPs), a designation earned through industry experience, a letter of recommendation and passing a complex exam.
He originated his first reverse mortgage about 16 years ago for the parents of a previous client, a deal that “changed their lives, and it changed mine,” he said. He stopped doing traditional forward mortgages about eight years ago to focus solely on reverse,
Harmes said he passed the CRMP exam on his first try and later built a detailed study guide for his colleagues to use that resulted in a “virtually 100%” pass rate. The designation, he said, has helped him to solidify more referral partnerships, to the point where he said he rarely loses deals except for when retail shops offer pricing he can’t match.
At C2 Financial, Harmes has constructed a mentorship model in which an experienced LO and a novice LO work together on three reverse mortgage files, with the trainee gaining additional responsibilities with each file. After that, they’ve typically gained enough knowledge to do the work on their own.
When it comes to borrower education, Harmes stressed that the process works best when information is offered in bite-sized chunks, rather than loan proposals accompanied by dozens of pages. Counseling is a key part of that process and there are pitfalls to be aware of.
“My policy is, I never tell them to look for a free session or a session paid for by a grant, because honestly, I think that’s too much work. We’re (sometimes) giving them three pages of counselors. I don’t want them dialing for dollars for four hours,” Harmes said.
“I originate in California, and there’s a state law that you can’t order the appraisal or any services that would cost the borrower until the eighth day after counseling. So we want to get that counseling session as soon as possible.”
