MBA launches forum for reverse mortgages, senior lending

The Mortgage Bankers Association (MBA) on Tuesday announced the launch of a new member forum dedicated to reverse mortgages and other senior-focused mortgage products.

The Senior Mortgage Solutions Network (SMSN) will provide MBA members a venue to discuss emerging trends, policy developments and business challenges tied to lending to older homeowners. Its scope includes Home Equity Conversion Mortgages (According to Cory, the network is intended for companies already active in, or evaluating entry into, the senior-lending segment. “The challenges and opportunities in this segment are immense, and this network will play a key role in advancing solutions that make a real difference for borrowers and lenders alike,” he said in a statement.

Broader than just reverse

Mayer added that the group was intentionally not branded as a reverse-mortgage forum because it is designed to address the senior demographic broadly, not a single product. He pointed that 1.5 million people age 62 and older applied for a mortgage last year, and 29% — about 450,000 — were rejected, often due to income-related qualification hurdles despite significant home equity.

Mayer also emphasized that SMSN is meant to complement, not compete with, the National Reverse Mortgage Lenders Association (NRMLA). Mayer sits on NRMLA’s executive committee, while Cory co-chairs NRMLA.

“NRMLA does a really good job supporting reverse mortgages, and what MBA is able to bring to the table, that’s additive here, is institutions that don’t offer reverse mortgages,” Mayer said. “This is sort of: ‘How do we grow the pie? How do we bring people in?’”

Participation in SMSN will require MBA membership, and operational details are still being finalized. MBA said the network will meet quarterly — primarily virtually — with at least one in-person meeting each year at an MBA conference. A kickoff call is scheduled for July 8.

“