Written by Jessica Guerin, as originally published in The Reverse Review.

FHA’s recent revisions to the HECM program launched the industry into overdrive, igniting a frenzy of discussion about the effectiveness of what some considered drastic change and giving way to a deluge of questions directed at HUD regarding proper implementation.

In the wake of the announcement, some expressed discouragement while others chose optimism. Whatever your take, the fact is the new rules will substantially impact industry participants across the board. Business as usual will not be the same.

In this issue, our team sought to explain the changes and shed some light on how the reverse mortgage space might be affected by talking to seasoned professionals with varying perspectives on the new guidelines. But our synopsis is just a fragment of the conversation that needs to be had. There is so much more to be said. We intend to continue the discussion—analyzing how to market this revised product, detailing tips for successfully navigating the new rules and assessing how the industry can bring this product to a wider audience.

When we look back on these changes five or 10 years from now, I believe we will see FHA’s recent move as a pivotal turning point for the industry, a historical moment for the reverse mortgage product that will forever alter the way people utilize home equity to support their retirement goals. With these changes, there is great hope that the negative image that has shrouded the product will dissipate as the public begins to recognize the HECM as the important financial planning tool that it is.

In the meantime, the road may be somewhat bumpy as the industry adapts to new guidelines. It’s important that we don’t lose sight of the possibilities senior consumers are afforded with a government-insured product that grants access to home equity. While business may not be the same as it once was, with a bit of creativity, there is great opportunity to take the HECM to the mainstream marketplace.