Key facts
- Credit unions originated 81 of the nearly 36,000 reverse mortgages closed nationwide in the past 12 months.
- Ron Kamler has 19 years of experience working with credit unions.
- Kamler believes reputational risk and product complexity deter credit unions from offering reverse mortgages.
- Alliance Reverse Mortgage partners with credit unions to offer reverse mortgage solutions.
- Reverse mortgages are increasingly seen as part of retirement planning rather than a last resort.
- A reverse mortgage credit line feature can grow over time, offering financial flexibility.
Credit unions are largely absent from the reverse mortgage market, despite having a significant pool of eligible members. Ron Kamler, president and CEO of Alliance Reverse Mortgage, noted that credit unions originated only 81 of the nearly 36,000 reverse mortgages closed nationwide over the past 12 months. Kamler, who has 19 years of experience working with credit unions, attributes this low adoption rate to concerns about reputational risk and the complexity of the product.
Kamler explained that the reputational risk for credit unions lies in not serving their members who inquire about reverse mortgages, forcing them to seek solutions elsewhere. He emphasized that modern reverse mortgages are not the high-risk products of the past and that partnering with specialists like Alliance Reverse Mortgage allows credit unions to offer the product without developing an in-house department, which is the case for 99.7% of credit unions.
Alliance Reverse Mortgage provides a turnkey solution, handling website integration and member service, which simplifies the process for busy credit unions. The company is currently licensed only in California but plans to expand.
Furthermore, Kamler highlighted a shift in how reverse mortgages are viewed, moving from a last resort to a strategic part of retirement planning. He shared an example of a couple who used a reverse mortgage at age 62, allowing the unused credit line to grow significantly over six years, providing substantial financial flexibility. He also expressed regret for not advising family members to secure a reverse mortgage earlier, as the potential credit line growth could have provided significant financial security later in life.