The reverse mortgage industry is comparatively smaller than its traditional mortgage industry, but the demographic pace and the need for more Americans to properly prepare for retirement are just two of the main reasons why the reverse mortgage industry could become more important than its traditional mortgage industry. over the next few years.
This is just one thought shared by Clayton Collins, founder and CEO of HW Media, LLC. The company represents several different media brands offering news, ideas and commentary across the US housing industry in publications such as HousingWire, RealTrends and FinLedger. Late June HW Media added Reverse Mortgage Daily to its brand directory by acquiring RMD from previous parent company Aging Media Network led by RMD founder John Edinak.
To better understand the philosophy behind the RMD HW Media acquisition, we sat down with Collins to discuss his own path to understanding reverse mortgages, what prompted the company to seek RMD as a new acquisition, and why the future of the reverse mortgage industry remains strong. a promise for many Americans seeking sources of retirement cash.
Where does the interest in reverse mortgages come from?
For Collins and other HW Media executives, he said, much of the interest in the reverse mortgage category is driven by demographics. This led to a previous acquisition oriented in reverse, in the form of ReverseReview, which was included in HousingWire’s existing coverage at the time of the deal.
“We watched where [reverse mortgage] the market is evolving in a shared ecosystem of real estate and housing, ”Collins said. “Although we are not a lender ourselves, we strive to match the industries in which we are seeing growth. I think this is a smart way of doing business, we go after markets where there is opportunity for long-term growth, and I hope we can be in the right place at the right time and help professionals grow their business at the same time as the market grows and grow together. ” …
According to Collins, HW Media’s strategy has evolved over time and RMD will remain a standalone brand that will overlap with the reach of other brands with synergistic opportunities.
“At the HW Media level, we believe that the presence of individual publishing brands within [a particular] The sector’s focus will help us serve the different audiences that work in these niches, but also have the institutional knowledge to pollinate content across the ecosystem. So with the Reverse Mortgage Daily deal and the inclusion of RMD in the HW Media family, the strategy is not to put RMDs inside HousingWire. We want RMD to continue to live as a growing, independent brand. ”
Wider exposure of direct audiences to reverse
Another important potential benefit of RMD becoming part of HW Media is its newfound ability to potentially introduce more reverse mortgage concepts to an established mortgage prospect audience that interacts with existing brands, including Housing wireCollins says.
“What we really hope and strive for is that we have a cutting edge audience that thinks about demographics, thinks every single day about how best to serve new homeowners,” he says. “But also, how do we serve seniors, retirees in our housing ecosystem, who are at another pivotal stage in their journey to home ownership? The knowledge, content and audience that we gain through RMD will help us better inform this frontline audience about what the housing lifecycle looks like at a later stage, but also help the RMD audience by bringing a little more information about the reverse product to the front. side of the industry ”.
Collins says this applies not only to initiators, who remain a critical component of the equation, but also to the many professionals who turn to mortgage professionals themselves, who often seek partnerships.
“Real estate professionals, brokers, and anyone else who advises current and aspiring homeowners, as well as senior homeowners, on which solution and the best product might be best for them,” he says.
The importance of demographics
It is also important for all housing stakeholders to understand the importance of demographics, Collins said, especially as populations age.
“If anyone thinks demographics don’t matter, just pay attention to the residential real estate market,” he says. “Regardless of what a pandemic or any other problem might throw on the housing market, this demographic will overcome those challenges and strengthen the advanced ecosystem of single-family home ownership.”
This becomes clearer, he said, if we look further at how the demographic data of older people is shaped in the future.
“If we look at the older side of the market, over the next 20 years, the percentage of Americans age 65 and over is expected to increase from less than 15% of the total population to over 20% of the total population,” Collins explains. “This is a major leap for Americans over 65, and the issue, according to the Urban Institute, shows that this demographic of over 65 is severely underfunded when it comes to retirement savings.”
For seniors who have underfunded retirement plans, the problem will arise pretty quickly when they try to maintain their current lifestyle or do other things that they may not have had when they were busy with their careers. Reverse mortgages are one possible way forward for older people as their retirement can be adequately funded, he said.
“I am very excited and optimistic about the future of helping homeowners access housing well-being. [so they can use] the equity that they have in their home to fund what they want and need to do after retirement, ”explains Collins. “There are many other demographic trends that we are paying close attention to. Clearly, some of the areas that Aging Media is working on in the area of nursing and home health will play a role in how some of these demographic trends manifest. I’m glad to be in the mortgage business and hope to provide this end of the market with the information they need to grow their business and make smarter, faster decisions. ”
The full interview with Collins can be found at last issue the RMD podcast available now.