Written by Reza Jahangiri, as originally published in The Reverse Review.

An industry veteran with two decades of experience in private mortgage capital markets and five years serving as Ginnie Mae President, Ted Tozer eloquently describes how recent policy changes are helping to set the HECM loan program back on track. While the changes may create challenges for borrowers and lenders in the short term, the latest wave of reform strongly positions the product for a bright future. We have heard time and time again that the future of our industry relies on the resolution of issues that have the potential to create sensationalized headlines or generate new headwinds on multiple other fronts. We’ve needed to address these issues head-on, and the good news is that much progress has been made in the past year.

The industry is currently working hard to train staff in preparation for the implementation of upcoming Financial Assessment guidelines. Once we make it through this last major policy change, the industry needs to work aggressively to ensure that our product is cutting its way though the noise and performing as it was intended to on a whole different scale. We’ve had too many years of low penetration, but now we have the tools in place to help us distribute the product on a much broader basis to help American seniors enhance and improve their lives.

I’d personally like to thank Ted Tozer for his efforts and commitment as a strong supporter of our industry. His thoughtful and timely action on the issue of partial-draw, fixed-rate products last year exemplifies his tireless dedication and determination to make the HECM program succeed. It’s refreshing to see someone in government understand the challenges of our business so well and take action to ensure its long-term sustainability.