Podcast: One-On-One With Patrick Halonen Of Longbridge Financial

As retirees decide how to ensure their financial well-being for the long term, reverse mortgages are getting a second look from homeowners in their 60s and 70s.

With a reverse mortgage, people can convert their home’s equity into income while continuing to live there. That extra money can be used for renovations, to combat inflation, pay for health care, and maintain a good quality of life, according to Patrick Halonen.

Halonen was recently named head of credit policy, underwriting, and quality control at Longbridge Financial in Paramus, New Jersey. Longbridge, founded in 2012, is a national reverse mortgage lender that specializes in working with seniors.

Halonen recently sat down with The Mortgage Note’s Scott Kimbler to talk about stepping into his new role at the company.

Halonen has 25 years of expertise in the financial services industry. He worked at TD Bank, where he helped influence lending operations as the senior vice president and head of underwriting for retail mortgage, home equity, personal loans, and credit lines.

Previous roles at Citibank and US Bank equipped Halonen with leadership expertise, as he managed high-performing teams across various mortgage operations, including processing and closing.  

Halonen said a recent conversation with his uncle drove home the importance of financial options for seniors as they age.

“He had come to visit, and we were talking about retirement, just in general, he’s entered retirement. He’s in the early stages, and I’m still in my working years, and we were talking about how in your working years, you attempt to accumulate wealth and accumulate assets,” Halonen said.

“And then as you enter into retirement, it kind of flips on its head. You’re starting to then leverage the assets that you’ve accumulated over your lifetime, your retirement savings, the equity in your property, and other ways that you may have saved money or accumulated wealth to then pay for your retirement.”

He went on to explain the difference between a home equity loan and a reverse mortgage.

“I think home repairs are a good conversation around home equity versus reverse mortgage,” Halonen said. “If you’re okay with having a monthly payment, it could be a substantial monthly payment that you’re going to have to pay back on a regular basis, then a home equity loan might be a good option for you. But in many circumstances, I’d say the majority of circumstances, being able to tap the equity in your home without having to make a payment against that loan is going to be beneficial.”

Halonen said that since starting at Longbridge in March, he’s learned new ways the financial industry can help people through all of the stages of their lives, and he is excited to go to work every day to help them.

“I really do appreciate a person’s home being at the center of their life. I’ve had so many experiences where I’ve been able to help a person become a homeowner who didn’t think they could potentially become one. Now, I help a person stay in their home who felt like there was no option, that they were going to have to live a much different lifestyle than what they’ve been accustomed to throughout the majority of their life,” he said.    

In May, Longbridge introduced a new proprietary reverse mortgage feature that preserves equity for heirs.

Leaders at the National Reverse Mortgage Lenders Association in Washington, DC, estimate that home equity for people 62 and older is about $13.9 trillion.

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