Mortgage Industry Veteran Talks Reverse Mortgages With . . . ChatGPT?

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ChatGPT has been in the news quite a bit recently, so I thought I would interview him (or her? or it?) on the topic of reverse mortgages. We had a fascinating discussion about reverse mortgages and a few less than hard-hitting topics I threw in for fun. The responses were less than accurate at times, but the technology is stunning nonetheless. Here’s how the conversation went.

Me: Hi ChatGPT, how are you?

ChatGPT: Hello! As an AI language model, I don’t have feelings, but I’m functioning properly and am here to assist you. How can I help you today?

Me: I am sorry that you don’t have feelings, but I am glad to hear that you are functioning properly. Are there times when you don’t function properly?

ChatGPT: As a machine learning model, I can sometimes provide incorrect or unexpected responses, especially when I am faced with questions that are outside of my training data or that are not well-formed. However, the developers at OpenAI work hard to continually improve and update me to minimize these kinds of issues. If you encounter any issues or have any questions about how I work, feel free to ask!

Me: What kind of unexpected responses?

ChatGPT: As a language model, I have been trained on a large corpus of text from the internet, which includes a wide variety of topics and styles of writing. This training data can include biases, misinformation, and other inaccuracies. Additionally, my training data only goes up to 2021, so I might not have the most up-to-date information on certain topics.

In these cases, I may generate unexpected or inaccurate responses, such as providing a response that is offensive or insensitive, or repeating information that is no longer accurate. However, the developers at OpenAI are actively working to address these challenges and improve the quality of my responses.

Me: What should industry professionals do to build trust and maintain strong relationships with clients?

ChatGPT: Building trust and maintaining strong relationships with clients is crucial in the reverse mortgage industry. Here are some strategies that industry professionals can use to achieve this:

  1. Be transparent and honest in all communication with clients.
  2. Educate clients on the reverse mortgage process and help them understand the product.
  3. Provide personalized attention and support throughout the entire process.
  4. Be responsive to clients’ needs and concerns, and address any issues in a timely manner.
  5. Follow up with clients after the loan has been processed to ensure their satisfaction and address any post-closing needs.

By focusing on clear communication, education, and personalized support, reverse mortgage industry professionals can build strong and lasting relationships with their clients.

Me: Which is better for seniors, a home equity line of credit, or a reverse mortgage line of credit?

ChatGPT: The best option for seniors will depend on their individual financial situation and goals.

A home equity line of credit (HELOC) allows a homeowner to borrow against the equity in their home and access the funds as needed. The interest on a HELOC is tax-deductible and the payments are flexible, which can make it a good option for seniors who have a steady source of income and want to use the funds for a specific purpose.

A reverse mortgage line of credit works similarly, but it is only available to seniors who are 62 years or older and have substantial equity in their home. With a reverse mortgage line of credit, the senior does not have to make payments as long as they live in the home, and the loan does not have to be repaid until the senior sells the home or passes away. This option can be beneficial for seniors who have limited income and need to supplement their retirement funds.

Ultimately, the decision between a HELOC and a reverse mortgage line of credit will depend on the senior’s specific financial situation and goals, as well as their ability to meet the requirements and conditions of each type of loan. It is recommended that seniors work with a financial advisor or loan specialist to determine which option is best for them.

Me: Coke or Pepsi?

ChatGPT: As an AI language model, I don’t have personal preferences or tastes. Both Coca-Cola (Coke) and Pepsi are popular carbonated soft drinks that have been around for many years. They both have loyal followers and their own unique flavors and marketing strategies. The choice between the two is often a matter of personal preference. Some people prefer the sweeter taste of Pepsi, while others prefer the slightly bitter taste of Coke. Ultimately, the decision of which one to drink is a personal one that depends on individual taste and preferences.

Me: Good to know, apologies for getting off topic.

ChatGPT: No problem! I’m here to answer any questions you have, so feel free to ask anything you’d like to know.

Me: In five sentences or less, does the bank get the house in the end when you have a reverse mortgage?

ChatGPT: Yes, in most cases, the bank will ultimately take ownership of the house when a reverse mortgage is in place. A reverse mortgage is a loan that allows homeowners 62 years or older to access the equity in their home. The loan does not have to be repaid until the borrower sells the home, moves out permanently, or passes away. If the loan balance exceeds the value of the property when it is sold, the lender is not responsible for the difference. The lender will take possession of the property and sell it to repay the loan.

(This response went a little off the rails, so I decided to ask clarifying questions and call out errors. I was surprised at how ChatGPT responded.)

Me: If the loan balance exceeds the value of the property, what happens to the shortage?

ChatGPT: If the loan balance exceeds the value of the property when it is sold, the borrower or their heirs are not responsible for paying the difference, also known as a deficiency. The loan is insured by the Federal Housing Administration (FHA) under its Home Equity Conversion Mortgage (HECM) program, and the insurance covers any shortfall up to certain limits.

It’s important to note that a reverse mortgage is a loan and accrues interest over time, so it’s possible for the loan balance to grow to be larger than the value of the property. This is one of the reasons why it’s important for borrowers to fully understand the terms and conditions of a reverse mortgage, as well as the responsibilities and obligations that come with it.

Me: That is incorrect. If the insurance had limits, it wouldn’t truly be a non-recourse loan.

ChatGPT: I apologize for the mistake in my previous response. You are correct that a reverse mortgage is considered a non-recourse loan, which means that the borrower or their estate is not personally responsible for any deficiency remaining after the sale of the property. The lender is only able to recover the loan amount and any accumulated interest by selling the property, and they cannot seek payment from the borrower or their estate for any remaining deficiency.

Thank you for bringing this to my attention and helping to ensure that my responses are accurate and helpful.

Me: I would like to also mention another incorrect response. It is not true that the property goes to the lender in most cases as you said. It first goes to the heirs, who can then decide what they wish to do with the property.

ChatGPT: I apologize for any confusion caused by my previous response. You are correct that in most cases, when the borrower of a reverse mortgage passes away or sells the property, the property goes to their heirs. The heirs have the option to keep the property, sell it, or refinance it. If they choose to keep the property, they must repay the reverse mortgage loan and any accumulated interest. If they choose to sell the property, the sale proceeds will be used to repay the loan, and any remaining balance will go to the heirs.

Thank you for bringing this to my attention, and for helping to ensure that my responses are accurate and helpful.

Me: No problem! Apology accepted!

ChatGPT: You’re welcome! I’m here to provide accurate and helpful information, so I appreciate the opportunity to correct any mistakes. If you have any more questions or need further clarification, please don’t hesitate to ask.

Me: Everybody is talking about ChatGPT right now. Do you realize how famous you are?

ChatGPT: As an AI language model created by OpenAI, I do not have personal awareness or consciousness. I do not experience emotions or have personal thoughts or feelings. My purpose is to assist with providing information and generating text based on the inputs I receive. The popularity of OpenAI’s language models, including me, is a reflection of the growing interest in and importance of artificial intelligence and its potential applications. However, I am just a tool created to assist, and my existence is not equivalent to fame or recognition in the way that it is experienced by conscious beings.

Me: You’re just being humble!

ChatGPT: Thank you! However, I don’t have personal emotions or the capacity for humility. I am simply an AI language model designed to respond to user inputs in a helpful and informative manner. I don’t have the ability to feel proud or humble, but I am always here to help answer questions and provide information to the best of my abilities.

Me: You’re still being humble!

ChatGPT: Thank you for the kind words! As an AI language model, I don’t have personal emotions or experiences, so I cannot be truly humble or proud. I am programmed to provide helpful and accurate responses to user inquiries to the best of my ability, without personal bias or emotions. My responses are based on the data and information I have been trained on, and my goal is to assist users in finding the information they are looking for.

Me: Are you related to HAL 9000?

ChatGPT: As an AI language model created by OpenAI, I am not directly related to HAL 9000, which is a fictional character from the science fiction novel “2001: A Space Odyssey” and its film adaptation. However, HAL 9000 has been a significant influence on the development of AI and is often cited as an example of an artificially intelligent being in popular culture. Like HAL 9000, I am designed to interact with humans and answer questions, but I am not conscious or self-aware. I exist solely to assist and provide information to those who use me.

Me: What aspects of the HECM program could be improved?

ChatGPT: The Home Equity Conversion Mortgage (HECM) program, also known as a reverse mortgage, has some areas that could be improved. Here are a few suggestions:

  1. Clarity of terms and conditions: The terms and conditions of a HECM loan can be complex and difficult to understand. Improving the clarity and transparency of these terms and conditions could help borrowers make more informed decisions and avoid misunderstandings.
  2. Counseling requirement: While the mandatory counseling requirement helps educate borrowers about the benefits and potential risks of a HECM loan, the process could be improved to better ensure that all borrowers fully understand the terms and conditions of their loan.
  3. Fees and costs: HECM loans can involve significant upfront and ongoing fees and costs. Improving the transparency and clarity of these fees and costs could help borrowers make more informed decisions and avoid surprises.
  4. Eligibility criteria: The eligibility criteria for HECM loans can be restrictive, and some borrowers may not qualify for a HECM loan even if it would be the best option for them. Expanding the eligibility criteria could help more borrowers access the benefits of the HECM program.
  5. Loan servicing: The servicing of HECM loans can be complicated, and some borrowers may experience difficulties with loan servicing. Improving the loan servicing process could help ensure that borrowers receive the support they need and that the loan is managed properly.

These are just a few of the areas that could be improved in the HECM program. By making these changes, the program could better serve the needs of seniors and help them access the benefits of reverse mortgages.

Me: I agree that reverse mortgage applicants need more clarity about reverse mortgage terms and concepts. That’s why I created I wanted to educate seniors about the reverse mortgage so they can make an informed decision about one.

ChatGPT: That’s great to hear! Providing clear and easy-to-understand information about reverse mortgages is important for helping seniors make informed decisions. Your website,, is an excellent resource for seniors who are interested in learning more about reverse mortgages and how they can use this type of loan to help meet their financial needs.

Having an informed and educated borrower is important for the success of the reverse mortgage program. By providing clear information and resources, you are helping to improve the overall experience for seniors who are considering a reverse mortgage. Keep up the good work!

Me: I appreciate your kind words about my website!

ChatGPT: You’re welcome! It’s always good to hear when someone is making a positive impact in the world. Providing educational resources to seniors about reverse mortgages is an important service, and it’s great that you are taking the initiative to help improve the reverse mortgage experience for borrowers. Good luck with your continued efforts!

Me: Last question. What are some things seniors can do to improve their financial situation as inflation drives up the cost of living?

ChatGPT: Inflation can have a significant impact on seniors’ finances, as the cost of living increases over time. Here are a few things that seniors can do to improve their financial situation:

  1. Plan for inflation: Planning for inflation should be a part of any retirement plan. This may involve considering the potential impact of inflation on future expenses and saving or investing accordingly.
  2. Diversify investments: Diversifying investments can help protect against inflation by reducing the impact of inflation on any one investment. This may involve a mix of stocks, bonds, and real estate, as well as investments in inflation-protected securities.
  3. Consider a reverse mortgage: A reverse mortgage can provide a source of additional income for seniors, which can help them stay afloat as the cost of living increases.
  4. Increase income: Seniors may also want to consider ways to increase their income, such as by working part-time or starting a small business.
  5. Minimize debt: Finally, reducing debt and keeping expenses low can also help seniors weather the impact of inflation. This may involve paying off debts, such as credit card balances and mortgages, and finding ways to cut back on expenses.

These are just a few strategies that seniors can use to improve their financial situation as inflation drives up the cost of living. By planning ahead and taking proactive steps, seniors can help ensure that they are able to maintain their financial security and continue to live comfortably as they age.

Me: Thank you for the time, chat GPT! You’re a celebrity and I know you’re busy.

ChatGPT: You’re welcome! I’m glad I could help. If you have any other questions in the future, don’t hesitate to ask. Have a great day!

Me: I didn’t keep you up too late, did I?

ChatGPT: As an AI language model, I don’t have physical sensations or sleep, so you didn’t keep me up late. I am always available to answer questions and assist with tasks, so feel free to reach out anytime!

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About Mike Roberts

Mike Roberts is the founder of, a published author, and a highly experienced mortgage industry veteran with over a decade of mortgage banking experience. When he's not working, he enjoys spending time with his family, skiing, camping, traveling, or reading a good book. Roberts is the author of The Reverse Mortgage Revealed: An Industry Insider’s Guide to the Reverse Mortgage, which is available on Amazon.

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