Social Security Planning Could Open The Door For Reverse Mortgage Conversations

Reverse mortgage professionals struggling with consumer hesitation may find their most effective entry point isn’t home equity, but rather Social Security.

That was the message from Thomas Drapala, director of strategic partnerships at the National Association of Registered Social Security Analysts (NARSSA), who on Thursday led a webinar hosted by the National Reverse Mortgage Lenders Association (NRMLA).

Rather than leading with product, Drapala urged reverse mortgage originators to start with education, specifically around Social Security claiming strategies, to build trust and uncover housing stability goals.

“Social Security is a universal topic,” Drapala said. “Almost everyone is going to claim it. Not everyone will get a reverse mortgage, but many of the same clients qualify for both conversations.”

The webinar drew roughly 160 registrants from 47 companies across 35 states, according to NRMLA President Steve Irwin, who spoke at the start of the webinar.

Drapala, who brought up the lack of education around Social Security, said during the webinar that the confusion creates a natural opening for advisers to engage retirees who may otherwise be resistant to reverse mortgage discussions.

He claimed that 51% of Americans don’t know how much of their retirement income will come from Social Security, while 42% don’t know their expected monthly benefit and 33% are unsure of their full retirement age. Online Social Security estimates can be unreliable and vary depending on the scenario, creating distress for seniors.

Drapala, who isn’t a reverse mortgage professional, said that when speaking with clients about their Social Security, homeownership naturally comes into play.

“When I help my clients with Social Security, aside from Social Security itself as their main retirement income, a lot of times the other main asset that they have is their home,” he said. “And I think it’s all of our jobs as professionals, whether you’re a reverse mortgage agent or whether you deal with Social Security as I do, we’re there to educate clients so that they can live the secure retirement that they’re looking for.”

Chris Downey, senior vice president at Federal Savings Bank and co-chair of NRMLA’s education committee, said the approach aligns with the reverse mortgage industry’s broader value proposition.

“The general theme is enabling someone, at least from a financial standpoint, to stay in their home indefinitely,” Downey said. “You’ve got to do what is best for the client, not for your sales numbers.”

Drapala framed Social Security as a tool for covering fixed retirement expenses with guaranteed income. “The goal is to offset fixed expenses with dependable income,” he said. “Social Security is stable. It doesn’t drop if the market drops.”

He added that reverse mortgage proceeds can also function as a bridge strategy for borrowers who delay claiming benefits to maximize lifetime income.

While emphasizing that reverse mortgages are not suitable for every homeowner, Drapala said Social Security planning provides a less transactional way to identify clients whose primary goal is aging in place.