HECM For Purchase Stalling, Not Failing By Itself
The reverse mortgage landscape has long touted HECM for Purchase as a potential hinge for retirement planning, but uptake remains stubbornly low. Industry veteran and leader at American Pacific Mortgage, Michael Banner, frames the issue as an industry problem, not a product flaw. With a March 24 webinar on the horizon, Banner argues that education, collaboration, and a shift in mindset are the keys to unlocking broader adoption.
As the market braces for evolving housing and retirement trends in 2026, the HECM for Purchase program stands as a microcosm of a larger dynamic: promising tools exist, yet market penetration remains a challenge. Banner’s assessment is that the product itself is not the bottleneck; the way the industry sells and supports it is.
Root Causes: Why Adoption Has Lagged
Industry insiders have long pointed to consumer awareness and lender readiness as major headwinds. Banner’s upcoming remarks center on a few persistent hurdles that keep HECM for Purchase on the periphery of mainstream lending:
- Limited outreach beyond a narrow slice of reverse mortgage professionals. Banner notes that the market has often preached to itself rather than reaching out to forward lenders, financial planners, and retirement specialists who could refer clients.
- Misconceptions about ownership and risk. A common misconception is that a HECM for Purchase deal will threaten home ownership, a belief Banner and his peers say is both inaccurate and harmful to adoption.
- Fragmented collaboration with forward mortgage teams. The program’s success hinges on better alignment between reverse and forward mortgage ecosystems to streamline purchase transactions for retirees.
- Educational gaps in retirement planning channels. Banner highlights that many long-term care and financial planning professionals have reservations, often due to limited familiarity with HECM for Purchase specifics.
In a candid assessment, Banner told HousingWire that the industry has not done enough to evangelize the product beyond reverse mortgage circles. He argues that a concerted effort to educate a broader audience could unlock a more meaningful share of the market.
Within this context, a figure from Banner’s own camp—APM’s Michael Banner HECM advocacy—reflects a sentiment shared by many lenders: the product can work, but only if the ecosystem evolves to support it. This stance resonates with a broader call across the sector for more practical training, better referral pipelines, and clearer messaging about how a HECM for Purchase transaction unfolds for seniors and their families.
Quantifying the Challenge: A Small Slice of the Market
Marking the scale of the issue, Banner points to a striking statistic: HECM for Purchase accounts for less than 3% of the reverse mortgage market. In an environment where the overall reverse mortgage book has fluctuated with interest rates and housing demand, that share signals both upside potential and a missed opportunity for retirement planning tools.
The small share isn’t just a reflection of demand; it’s a signal about how the industry communicates, educates, and coordinates with buyers who need a seamless path to purchase a home that supports their retirement plan. Banner’s analysis suggests that without a broader coalition of mortgage professionals who understand HECM for Purchase, the program will remain a sidebar feature rather than a mainstream option.
The March 24 Webinar: What to Expect
The March 24 session hosted by HECMWorld.com will bring together a rounded panel of players from the reverse mortgage space. Banner’s objective is to contrast the current state of the market with a practical playbook for expanding uptake. He emphasizes that the event will focus on collaboration and real-world steps rather than theoretical arguments about product structure.
In discussing apm’s michael banner hecm, Banner frames the webinar as a deliberate push to build bridges between reverse mortgage professionals and forward lenders who historically have been hesitant to incorporate HECM-based purchases into retirement planning conversations. The intent is to demonstrate how a more integrated approach can ease the path for borrowers who want to age in place while leveraging home equity to fund a purchase.
What Needs to Change: The Roadmap
Banner’s thesis for reviving HECM for Purchase centers on three core lanes of change. Each is designed to empower both lenders and borrowers with clearer choices and fewer frictions at the closing table.
- Broad-based education: Expand training for financial planners, real estate professionals, and long-term care specialists about the mechanics, protections, and benefits of HECM for Purchase.
- Stronger lender collaboration: Build referral networks between reverse mortgage teams and forward mortgage lenders to streamline the purchase process for seniors.
- Clearer consumer messaging: Reframe public perceptions by addressing common myths around home ownership, loan repayment, and ownership risk in a retiree-focused context.
From Banner’s vantage point, the shift is less about changing the product and more about changing the channel strategy. He has described apm’s michael banner hecm as a call to rebalance who carries the message and how it’s presented to buyers who might benefit the most.
Implications for Borrowers, Lenders, and the Market
For borrowers, revitalizing the HECM for Purchase option could unlock greater flexibility when purchasing a home in retirement. If executed well, it could represent a tool to preserve savings while maintaining housing quality and lifestyle. For lenders, a more robust ecosystem could create new revenue channels and longer-term client relationships centered on planning for aging-in-place needs.
At the same time, the market must navigate a cautious landscape shaped by regulatory considerations, appraisal standards, and evolving consumer protections. Banner’s framing of these issues places emphasis on practical steps, not political debates, to expand access and understanding. The March 24 webinar is positioned as a milestone event that could set a more ambitious agenda for the year ahead.
Closing Thoughts: The Industry’s Responsibility
The conversation around HECM for Purchase has always been about balancing risk, accessibility, and clarity for senior homeowners. The argument now, as Banner lays it out, is that the product’s potential has been constrained by a lack of cohesive marketing, education, and cross-organization collaboration. If the industry can align around a shared playbook, apm’s michael banner hecm posits, there is a realistic path toward broader adoption and more meaningful retirement planning options for retirees across the country.
Key Data Points to Watch
- HECM for Purchase share of all reverse mortgages: less than 3%
- Upcoming event: March 24, 2026 webinar hosted by HECMWorld.com
- Primary barriers cited: education gaps, cross-channel collaboration, and consumer messaging
As the industry tracks the outcomes of Banner’s upcoming outreach, market watchers will be watching how lenders respond to the call for a more integrated approach. If apm’s michael banner hecm and similar voices succeed in expanding engagement beyond traditional circles, HECM for Purchase could move from a niche option to a recognized retirement-planning tool in the years ahead.
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