Mazonas has worked in the reverse mortgage industry for 35 years, and in a previous role at Transamerica HomeFirsthe initiated the first housing advice program in partnership with San Mateo County Area Office on Aging.
According to his LinkedIn account, Mazonas “founded and operated the first successful major private reverse mortgage company operating in 17 states [and] created the first proprietary lifetime reverse mortgage products and developed the methods to securitize reverse mortgages as the first longevity-rated asset class.”
He wrote that federal reverse mortgage laws, as well as several state-level laws, are designed with multiple safeguards since senior homeowners are widely considered a protected class. One of these safeguards is mandatory housing counseling for all persons named on the title of a property before an application for a Home Equity Conversion Mortgage (HECM) can be funded.
Under current rules, HUD-certified housing counselors meet with potential borrowers to assess their financial circumstances, explain how a reverse mortgage works and assess whether the product meets the borrower’s needs, Mazonas said.
Advisors also explain how a reverse mortgage affects home equity and long-term financial obligations. A certificate of completion is only issued after the advisor has determined that the loan is appropriate.
“Eliminating the HUD-certified housing counseling requirement would also strengthen the end strategy for unregulated ‘real estate investment’ contracts, home equity line of credit (HELOC) term loans, and negative amortization line of credit products to use deceptive marketing to prey on senior borrowers who need access to their home equity,” Mazonas wrote.
Mazonas pointed to the financial crisis of the late 2000s as an example of the risks associated with negative amortization loans and HELOC resets. These led to higher monthly payments for many homeowners, including seniors, and contributed to widespread foreclosures.
New viewing advisors recently suggested that the counseling requirement could be removed from the HECM program if the “dizzying array of product choices” were limited. The company wrote that many borrowers are confused by the numerous options available and that “the guidance has been substantially watered down, making it more of a check-the-box step than a more serious safeguard.”
Mazonas made separate comments on HUD’s assessment of whether to restructure or eliminate the government-insured HECM program after requesting public comment.
In response to warnings that the reverse mortgage system relies too heavily on federal guarantees to absorb losses, Mazonas said the HECM program’s design and service standards have weakened over time, leaving HUD responsible for poorly maintained homes when loans are returned to the government.
Mazonas argued that the HECM program should continue but be redesigned to better reflect the needs of senior homeowners — including financing for deferred maintenance, providing predictable cash flow and reducing reliance on optimistic home price assumptions.
Mazonas urged HUD to strengthen property oversight and limit HECM loans to the Federal Housing Administration‘s conforming loan cap and direct higher-value homes to private programs.
HUD is expected to announce its decision in 2026.
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