In
today’s
economy,

mortgage
rates
and
housing
expenses
have
consistently
risen.
As
a
result,
older
citizens
are
tapping
into
their
retirement
savings
to
cover
costs—if
they
have
it.
However,

homeowners
have
a
unique
advantage
with

home
equity
products—designed
to
let
residents
tap
into
their
home’s
equity
for
cash.  Mortgage
professionals
must
keep
up
with
the
new
demand
for
home
equity
products
in
the
new
market.

In
an
exclusive
executive
conversation,
HousingWire
sat
down
with
Jonathan
Scarpati,
senior
vice
president
of
Wholesale
Production
at

Finance
of
America,
to
explore
home
equity
products,
opportunities
for
mortgage
professionals
to
leverage
them,
and
more.

This
interview
has
been
edited
for
length
and
clarity.

HousingWire:
How
did
you
get
into
Finance
of
America
and
the
industry?

Jonathan
Scarpati:
I
started
with
Senior
Lending
Network
out
of
New
York.
I
had
a
pretty
unique
path
into
the
space,
and
I
started
out
selling
leads
from
national
TV.
Later,
I
joined
Urban
Financial
Group.
They
were
a
customer
of
mine,
and
I
made
the
transition
there.

HW:
What
do
you
see
as
the
biggest
opportunities
for
mortgage
professionals
in
leveraging
home
equity
products,
especially
as
senior
homeowners
become
such
a
large
and
growing
demographic?

JS:
The
home
equity
wealth
of
our
senior
homeowners
now
exceeds
14
trillion,
reflecting
a
growing
market.
That
growth
presents
an
opportunity
for
reverse
mortgages
and
home
equity
loans.
Life
expectancy
is
also
increasing,
with
the
average
sitting
around
77
and
a
half,
although
many
live
into
their
90s.
Retirement
planning
has
shifted
to
longevity
planning,
making
home
equity
access
essential
for
financial
security.

Senior-friendly
financial
products,
like
those
from
Finance
of
America,
allow
seniors
to
age
in
place
while
leveraging
their
home
value
to
cover
retirement
healthcare,
daily
expenses,
and
more.
These
products
address
the
unique
needs
of
that
growing
demographic.

HW:
How
do
you
envision
home
equity
products
evolving
to
meet
the
needs
of
both
traditional
loan
originators
and
underserved
borrowers
in
the
coming
years?

JS:
We’re
seeing
more
home
equity
products
in
the
marketplace,
and
they’re
serving
a
wider
range
of
borrowers,
including
those
from
underserved
communities.
I
think
the
additional
features
and
optionality
grants
more
access
to
helpful
solutions.
Technology
will
also
play
a
big
role
in
simplifying
and
speeding
up
the
process
for
everyone.

A
great
example
would
be
our

HomeSafe

Second

mortgage,
the
only
second-lien
reverse
mortgage
product
that’s
ever
been
available.

HW:
How
can
mortgage
professionals
best
position
themselves
to
capitalize
on
this
growing
market?

JS:
The
key
for
most
mortgage
professionals
today
is
educating
themselves
and
customers
about
the
different
product
types,
like
reverse
mortgages.
We
offer
several
free
educational
resources
that
explain
the
pros
and
cons.

Also,
many
loan
originators
go
against
the
grain.
They
think
they
need
to
go
out
and
find
new
customers
to
sell
reverse
mortgages.
Truthfully,
the
biggest
opportunity
for
them
is
returning
to
past
customers.

HW:
Can
you
talk
a
bit
about
how
equity
can
be
a
proactive
financing
tool?

JS:
Home
equity
can
be
strategically
used
to
manage
financial
challenges,
debt
consolidation,
home
improvement,
and
health
care
costs,
particularly
for
aging
homeowners.
Promoting
home
equity
as
a
proactive
financial
strategy
for
retirement
planning
and
significant
life
events
helps
clients
plan
beyond
needs
and
emergency
use.
I
think
a
great
example
is
something
called
portfolio
sequence
of
returns.
When
interest
rates
and
other
investments
are
down,
a
homeowner
can
tap
into
home
equity
instead
of
selling
investments
when
they’re
down.

HW:
How
is
the
broader
mortgage
industry
adapting
to
the
demand
for
home
equity
solutions,
and
what
role
does
innovation
play
in
driving
this
change?

JS:
The
industry
is
focused
on
home
equity
products
in
response
to
the
increase
in
demand.
Also,
senior
homeowners
face
unique
financial
challenges,
including
a
widening
retirement
savings
gap
due
to
higher
interest
rates,
inflation,
and
rising
healthcare
costs.
The
traditional
retirement
dependent
on
pensions
or
social
security
is
becoming
less
viable,
making
home
equity
a
more
critical
alternative.

Innovative
lending
models
are
driving
more
accessibility
and
efficiency
in
home
equity
financing
options.
That
is
something
that
Finance
of
America
wants
to
focus
on.
We’re
going
to
expand
our
portfolio
with
our
proprietary
reverses,
including
our
HomeSafe
suite
of
products,
and
our
second
mortgage
with
reverse
mortgage
features.

HW:
What
do
you
believe
is
the
long-term
impact
of
home
equity
products
on
the
mortgage
market,
and
how
should
professionals
or
LOs
prepare
for
the
future
of
lending?

JS:
I
think
they’re
here
to
stay.
It’s
going
to
become
a
core
component
for
mortgage
offerings
delivering
sustained
value
to
borrowers
and
lenders
alike.