Finance of America’s Jonathan Scarpati on Shifting Consumer Behavior

Why It Matters

Lenders that realign products and sales practices to meet homeowners’ desire to stay put can unlock a sizable, persistent market for equity access and renovation financing; those that don’t risk ceding business to competitors with more flexible, borrower‑centric solutions. Adapting also differentiates originators in a low‑volume market and preserves long‑term client relationships.

Summary

Jonathan Scarpati of Finance of America Reverse says the mortgage market has shifted from churn to retention: many homeowners are choosing to age in place rather than buy or sell, driven by historically low first‑mortgage rates, high home prices and strong community ties. That change is translating into demand for renovations, debt consolidation and liquidity while keeping existing low‑rate loans. Scarpati argues traditional equity products like cash‑out refinances and HELOCs often don’t fit these borrowers, so originators must move from product‑selling to outcome‑focused advising and offer solutions—such as second‑lien products—that preserve first mortgages while unlocking equity. Top originators are adapting by asking what borrowers want to accomplish, structuring bespoke solutions and using human‑centered conversations to capture this under‑served demand.

Original Description

On today’s sponsored episode, Editor in Chief Sarah Wheeler talks with Jonathan Scarpati, chief production officer at Finance of America, about the shift in consumer behavior that has homeowners staying in their homes longer — and what that means for lenders.

The HousingWire Daily podcast brings the full picture of the most compelling stories in the housing market reported across HousingWire. Each morning, listen to editor in chief Sarah Wheeler talk to leading industry voices and get a deeper look behind the scenes of the top mortgage and real estate.