Written by Shannon Hicks, as originally published in The Reverse Review.

The election of Donald Trump exemplifies the contempt many Americans hold for politicians and experienced political operators. If history has taught us one thing, it is that seasoned politicians have somewhat predictable behavior. Today, we find ourselves entering a period with no historical precedent to help shape our expectations as a political outsider takes the reins of power. In addition, another appointee who has never held a political office could be leading one of the nation’s largest agencies.

Many are left to wonder what Trump’s selected HUD secretary, Ben Carson, will focus on as he steers one of the largest bureaucracies in the federal government with a budget in excess of $47 billion. With no prior civil service to draw upon, one is left to consider his early childhood. Carson grew up in the inner city, perhaps a fitting background as HUD oversees programs for low-income families, provides rental assistance and helps struggling families avoid foreclosure. Compassion should be an attribute for anyone whose choices may impact the future housing of millions of Americans. To Dr. Carson’s credit, both critics and supporters regard him as a caring and compassionate man. On a broader scale, let’s hope the administration’s compassion extends out to older homeowners who could benefit from taking out a HECM.

The Mnuchin Connection

Last month Treasury secretary nominee Steven Mnuchin faced the scrutiny that is typical during the confirmation process. Unfortunately, a pointed question regarding reverse mortgage foreclosures served only to promote the false narrative that banks evicted reverse mortgage borrowers without cause. Mnuchin cited the challenges of non-borrowing spouses and the nonpayment of property taxes IndyMac bank faced in their acquisition of Financial Freedom’s HECM servicing. Mnuchin said he would work closely with HUD to address these issues, perhaps not knowing that recent HECM rules already have.

Compassionate Pragmatism

Urban renewal is critical for the improvement of our nation’s long-neglected inner cities. However, less visible is the critical need for seniors to safely access their home’s equity and finance their retirement while maintaining their independence. Will a “business-minded” administration see the value in the federal government’s continued support of the HECM program?

It’s a question worth asking as the recent actuarial report shows a projected negative economic value of the program. If the administration is truly pragmatic, one hopes they will see the savings in subsiding the HECM versus incurring more unfunded liabilities for senior homeowners who may need entitlement programs. Pragmatism can be compassionate, for both low- and middle-income Americans.

Presidential administrations typically set the tone while experienced bureaucrats execute the finer details that fit within the government’s philosophy. Today, more than ever, older homeowners need the assurance that the reverse mortgage will continue to provide a means to fund their longevity.