By providing a more cost-effective and transparent alternative, credit unions can fulfill their mission of member advocacy while retaining assets that might otherwise leave the institution.
Broader training and education
For many credit unions, the hurdle to entering the reverse mortgage market is not a lack of desire, but a lack of specialized infrastructure. Because reverse mortgages are highly regulated and distinct from traditional "forward" mortgages, they require a specific set of skills and a different approach to loan counseling.
Mountain America Credit Union, based in Utah, serves as a case study for how an institution can evolve its approach to senior lending over time. The credit union’s journey began with a single specialist. However, when that loan officer passed away in 2011, the institution had to reevaluate its strategy. After hiring a new specialist to maintain the program, Mountain America realized that a siloed approach was limiting their reach.
Starting around 2015, the credit union shifted its strategy toward a more integrated model. They began training all loan officers across their extensive branch network to at least be conversant in the basics of reverse mortgages. The goal was not necessarily to turn every employee into a specialized reverse mortgage underwriter, but to ensure that every "front door" of the credit union was open to the conversation.
Today, Bartholomew explained, the training extends beyond just the mortgage department. Branch employees and tellers are trained to identify the "triggers" or life events that might make a reverse mortgage a viable solution for a member. When a member expresses concerns about rising property taxes, medical expenses, or the desire to renovate their home for "aging in place," employees are now equipped to direct them to the appropriate internal resources.
Kamler emphasized that this holistic approach is essential for solving the "disconnect" that often occurs at the point of contact. He shared anecdotes of members calling their credit union’s main service line to ask about reverse mortgages, only to be told by a call-center representative that the institution did not offer the product—even when they did. In other instances, members were simply told to "look it up online," effectively pushing them into the arms of aggressive national lenders.
For older homeowners, such interactions can be damaging to the long-term relationship. If a member has spent decades banking with a credit union, they expect that institution to be their primary partner in retirement. When the credit union fails to provide guidance on home equity, it creates a fracture in the relationship that can lead to the member moving their entire portfolio elsewhere.
From Last Resort to Strategic Tool
A significant portion of the presentation focused on the changing perception of reverse mortgages within the broader financial services industry. Historically, these loans were viewed with skepticism and often seen as a "last resort" for homeowners who had exhausted all other financial options.
Kamler noted that this stigma is rapidly fading as financial planners and retirement experts begin to see the strategic value of home equity. “Twenty years ago, it was only for someone who’s out of money,” Kamler said. “It was a last resort program. Today, reverse mortgage is completely different. We’re serving members that are using it as a financial planning tool.”
