Celink's Ryan LaRose calls for HECM updates to support growth

"As a subservicer, we are completely subject to the origination volumes of our lender clients. Generally, they are all optimistic that 2026 will generate higher volumes than 2025, but by what amount is not clear. Structural constraints are limiting broader industry expansion, and targeted improvements to the HECM program are needed."

"When we began subservicing reverse mortgages 20-plus years ago, we inherited a portfolio of approximately 5,000 loans, and were able to operate effectively with three staff members and a relatively basic servicing platform. Today, we maintain a highly skilled workforce comprising hundreds of professionals with deep expertise in the complexities and nuances of reverse mortgage servicing."

"As the industry turns the corner and origination volumes increase, the servicing side of the business should experience expansion rather than contraction. Just as the industry benefits from having multiple reverse mortgage products available to originate such as HECMs alongside proprietary options, it will likewise be healthier to see growth and diversification around the critical function of servicing."

Reverse mortgage servicing growth is contingent upon origination volumes from lender clients, with 2026 expected to see higher volumes than 2025, though the magnitude remains uncertain. Industry consolidation is primarily driven by scale challenges, as servicers now require hundreds of skilled professionals and sophisticated, costly technology platforms compared to minimal staffing needs two decades ago. Structural constraints limit broader industry expansion, prompting calls for targeted improvements to the HECM program. The servicing sector should experience expansion alongside increased origination volumes, benefiting from diversification similar to the availability of multiple reverse mortgage products.

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