As the demographic landscape of the United States continues to shift toward an older population, credit unions find themselves at a critical crossroads regarding their mortgage product portfolios. Despite a deeply loyal and aging membership base, these member-owned financial institutions are currently capturing only a microscopic fraction of the reverse mortgage market. This was the central theme of a high-level panel discussion held this week at the American Credit Union Mortgage Association (ACUMA) annual “Make Your Mark” conference in Las Vegas.
Industry experts and credit union executives gathered at the event to dissect the current state of senior lending, revealing a stark disparity between the number of eligible members and the actual volume of reverse mortgage originations. The consensus among the presenters was clear: credit unions have a significant and largely untapped opportunity to better serve their older members by integrating reverse mortgages into their broader financial planning services.
The presentation featured Ron Kamler, president and CEO of Alliance Reverse Mortgage, and Brandon Bartholomew, mortgage sales manager at Mountain America Credit Union. Together, they outlined the specific challenges that have historically hindered credit union participation in this space, while highlighting the successful strategies used by early adopters to bridge the gap between member needs and institutional offerings.
The Statistical Disconnect
To illustrate the scale of the missed opportunity, Ron Kamler presented a series of data points that underscored the current market imbalance. According to Kamler, approximately 36,000 reverse mortgages were originated across the United States over the past 12 months. Out of that total, credit unions were responsible for only 81 loans.
This figure is particularly striking when viewed against the backdrop of the credit union industry’s total reach. Kamler noted that there are roughly 55 million credit union members nationwide who are currently age-eligible for a reverse mortgage—typically defined as those age 62 or older for the federal Home Equity Conversion Mortgage (HECM) program, or as young as 55 for certain proprietary private products.
The gap between 55 million eligible members and 81 closed loans suggests a profound disconnect in the marketplace. For Kamler, this indicates that millions of seniors are either not accessing their home equity at all or, more likely, are taking their business to independent mortgage banks and specialized lenders rather than the financial institutions they already know and trust.
One of the primary drivers of this disconnect is a lack of awareness and a clear starting point for the consumer. Many senior homeowners are curious about how to leverage their home equity to support their retirement but are intimidated by the complexity of the product or the reputation of the industry. Brandon Bartholomew noted that at Mountain America Credit Union, the decision to enter the reverse mortgage space was driven directly by member demand.
Bartholomew explained that members began approaching the credit union with questions after receiving quotes from outside lenders. In many cases, these members were seeking a "second opinion" from a trusted source. When the credit union staff reviewed the terms and fees being offered by external competitors, the results were often alarming.
“They trusted the credit union to help them and advise them as what to do,” Bartholomew said during the panel. “That’s one of the reasons we started getting into reverse mortgages—to help them, because we saw how much they were being charged. It was outrageous what they were being charged outside.”
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.”
Modern reverse mortgage strategies often involve the use of a HECM Line of Credit. Unlike a traditional Home Equity Line of Credit (HELOC), which can be frozen by a bank during economic downturns and requires monthly interest payments, a reverse mortgage line of credit cannot be cancelled or reduced as long as the borrower meets their loan obligations (such as paying property taxes and insurance).
Furthermore, the unused portion of a reverse mortgage line of credit has a "growth feature," meaning the available credit increases over time. This allows savvy borrowers to set up the line of credit early in retirement and let it grow, providing a massive pool of liquidity that can be used later in life for long-term care or as a hedge against market volatility. If the stock market takes a dip, a retiree can draw from their reverse mortgage line of credit instead of selling investments at a loss, allowing their portfolio time to recover.
For credit unions, positioning the reverse mortgage as a sophisticated financial planning tool aligns perfectly with their role as a "financial partner" for their members. It moves the conversation away from debt and toward the preservation of wealth and the enhancement of quality of life during retirement.
The Path Forward: Internal Growth or Strategic Partnerships
While the opportunity is vast, the panelists acknowledged that not every credit union has the resources to build a full-scale, internal reverse mortgage department from scratch. The regulatory requirements, specialized servicing, and unique counseling protocols can be a heavy lift for smaller institutions.
Kamler suggested that for these organizations, the best path forward might be a partnership model. By collaborating with specialized reverse mortgage companies, credit unions can offer the product to their members under a "white-label" or referral arrangement. This allows the credit union to maintain the member relationship and ensure the member is getting a fair deal, while the specialized partner handles the technical complexities of the loan origination and compliance.
Regardless of the specific operational model chosen, the executives at the ACUMA conference emphasized that "doing nothing" is becoming an increasingly risky strategy as the "Silver Tsunami" of aging Baby Boomers continues to gain momentum. With 55 million eligible members already in the system, the demand for equity-release products is only going to grow.
As the presentation concluded, the message to the credit union leaders in attendance was one of both caution and encouragement. The current origination numbers—81 loans out of 36,000—represent a failure to meet member needs, but they also represent a massive runway for growth.
“There is a tremendous amount of room for improvement,” Kamler told the audience. By investing in education, breaking down internal silos, and reframing the reverse mortgage as a tool for financial empowerment, credit unions can secure their place as the primary financial advocates for the next generation of retirees.
