NAF’s Shannon Robinson on home equity’s central role in retirement planning

New American Funding (NAF) is ramping up its push into reverse mortgages. It has grown its dedicated reverse division from three loan officers to 85 in the past three years as more senior homeowners look to tap into record levels of housing wealth.

Shannon Robinson, senior vice president of NAF’s reverse division, is building a national sales footprint to capture demand from aging borrowers who seek flexibility in retirement. The ultimate goal, she told HousingWire‘s Reverse Mortgage Daily, is to make home equity a mainstream part of retirement planning, positioning reverse mortgages as a tool for financial independence rather than a last-resort debt solution.

Editor’s note: This interview has been edited for length and clarity.

Sarah Wolak: When you think about reverse-focused companies, NAF hasn’t been part of that conversation until more recently. Can you talk about how you’d characterize the state of the reverse mortgage business today and any trends you’re seeing, whether at NAF or across the industry as a whole?

Shannon Robinson: The state of reverse mortgages in the industry is really being driven by two powerful realities right now. One is that more than 11,000 Americans are turning 65 every day, and homeowners over the age of 60 to 62 years old hold over $15 trillion in housing wealth.

When you just sit there and think about that statement, it’s extremely powerful. So, as active adults are looking for ways to navigate inflation and create financial flexibility, home equity is becoming an increasingly important part of the retirement conversation, and NAF is very much focused on that.

You mentioned that you’re not hearing a lot about NAF until maybe over the past year or so. That’s because NAF took a really strong step into looking into the business and said, as a top 10 independent mortgage banker, we have a suite of products that we offer to our larger organization, and we really need to step into and explore additional options in the way of reverse mortgages.

So, about three years ago, NAF set out to grow this footprint and bring more solutions to our homeowners, especially in this space. Our database is getting older, and there are opportunities that we can offer this group, and so we set out to build a national sales division.

We had a very small division already at NAF. It was Patty Arvielo, our CEO, who said, “We really have got to step into this and take advantage of where we’re seeing this pent-up home equity and where we’re seeing people wanting to age in place.” So, why not set forth and build this out?

Wolak: Were you previously at NAF before the reverse division was created or were you brought on to lead? What was your journey into the space like?

Robinson: I was not at New American Funding up until about three and a half years ago. I joined in January 2023, but I have over 20 years of experience being pretty much exclusively in the reverse mortgage space.

I started in traditional forward lending and was a loan officer assistant, and then there was an opportunity to go and start something new in the reverse space, and so I started at Liberty Home Equity Solutions about 20 years ago, and was there for a good stint. Then I went on to American Advisors Group and was there for probably nine years.

So I wasn’t part of the original build of everything at NAF, but I did start the entire growth of the reverse division nationwide. We took it from three loan officers to 85 loan officers, which is where we stand today.

Wolak: Many of the professionals we talk to in the reverse space have been doing it for a while and have come from the forward lending side. What do you think has kept you in the reverse space?

Robinson: The people. It’s all about the people and the opportunity, and I have been in this industry, like you said, for a long time. There are a lot of us that are veterans in this space, and I think that’s what I love, is that you see people still staying in this decades later that have the same passion for educating and bringing opportunities to referral partners, financial advisers, Realtors, etc.

My opportunity is bringing this to the broader audience of our traditional loan officers. We have over 1,500 retail loan officers here at New American Funding, and another 450 in consumer direct. So what really drew me in — not only to New American Funding and its mission — was the opportunity where we could really educate and lean into our forward lending loan officers, educate them in this and just show how you can really set people up for a successful retirement.

A lot of people look at this and think it’s just a “get-me-out-of-debt” solution, but it really is becoming a part of retirement planning. Being in this space is all about the people I’ve been around, but it’s also an opportunity where I can continue to spread a little bit of education, talk about the opportunity and get rid of some of those myths around this product.

Being in front of these wonderful loan officers here at NAF, that’s what’s kept me going. I could go back into forward lending and do all of that, but I have a mission and a purpose, so I want to continue to talk about this product for years to come.

Wolak: You mentioned the misconceptions around reverse mortgages and the areas where the space could benefit from some education. What do you think the biggest challenges are that older homeowners face? Does NAF have specific offerings for these borrowers?

Robinson: Older homeowners continue to feel the pressure from rising living costs. Health care expenses continue to be on the rise, and then the big concern is people outliving their savings. We’re living longer, medicine is incredible, people are getting healthier, and unfortunately, they are outliving their savings. There are concerns around that.

A reverse mortgage can bridge that gap by allowing homeowners to access a portion of their home equity without making a required monthly mortgage payment. The funds can be used for supplementing their retirement income, covering the unexpected expenses, health care costs, a new roof that needs to be put on the home. A reverse mortgage can just provide that simple peace of mind.

At NAF Reverse, we focus on providing solutions that fit each client’s goals. In addition to the HECM product, we also offer proprietary solutions for homeowners with higher home values and options that help everyone from purchasing a new home to preserving their retirement assets.

We just really stay focused here at NAF on helping homeowners and their families to fully understand their options and determine whether home equity can play a meaningful part in providing a comfortable retirement.

Wolak: You mentioned proprietary loans, which are the “hot products” for many companies. Are they having a big impact at NAF?

Robinson: It’s had a pretty big impact at NAF and I think it’s exciting to see new products enter this space. I will always be a No. 1 fan of the traditional HECM, I mean, there’s nothing like that. But opening up reverse mortgage options expands options for homeowners who don’t fit the traditional guidelines of a HECM.

One thing I’m excited about is that we do offer so many of the proprietary products that don’t fit the traditional guidelines. There are so many that we see in the jumbo markets — you see a lot of larger home equity opportunities that they can tap into, where maybe a HECM couldn’t but these proprietary products can.

The folks that we work with on these products are constantly asking questions: What are we seeing? What are your homeowners telling you? They’re exploring how we can keep having holistic conversations, talking with borrowers about their financial future and offering these types of solutions. So it’s become a big part of our business over the last couple of years.

Wolak: Considering your history of experience in the reverse space and the developments that are happening today, what are you paying attention to when thinking about how the environment is going to look like in the next few years?

Robinson: I believe we will continue to see reverse mortgages become a more mainstream part of retirement planning. I think that as more Americans reach retirement age, financial advisers will look for ways to help preserve clients’ assets.

Home equity will play a much larger role in these conversations, as I said. Financial advisers are there to protect assets under management but are also looking for other solutions. How else can we tap into more income streams? Why not look at the opportunity of using housing wealth?

Obviously, we’re watching product innovation around proprietary. What other products are going to come to the table and open up opportunities for our active adult homeowners? But look at the advancements in technology. My goodness, we’re seeing 10 new things every single day. Look at AI, which plays a prominent role.

Also, we need stronger partnerships with financial professionals and ongoing efforts to educate consumers. We still have to educate and bring this conversation to the table. The more that people can understand their options, the better position they’re going to be in to make an informed decision about their retirement.