Over the past ten years since I have been specialized in the FHA Reverse loan program, I have done my best to educated Financial planners about the benefits to the senior clients or to their clients who have senior parents.
They have been, very, very resistant to the idea, due to a total lack of understanding about the loan and they have cultivated a bias against it due to a lack of education about how it works the pros, the cons and how it could elevate their image to their clients as a “trusted advisor”.
It seems that this is all about to change. Following is an article from Reverse Mortgage Daily that I will share in two parts.
Financial Planners Consider Reverse Mortgages Now Before Industry Changes
“Despite some industry headwinds, now may be just the right time for financial advisors to recommend reverse mortgages to clients to help fund retirement and lock in home values and claim amounts, says a recent article by the online industry website Financial Planning.
If a reverse mortgage makes sense for a financial planner’s clients, it’s a good idea to look into them soon, and for several reasons, Financial Planning advises.
These reasons include the possibility that the Department of Housing and Urban Development (HUD) could decrease loan limits at the end of 2011 from $625,500 to $417,000. Also, an FHA-insured reverse mortgage is a way to lock in a home’s current value and protect its equity, as housing prices in some parts of the country continue to decline.
And, for pre-retirees who have lost their jobs and are struggling to find work in a weak economy, the loan could be a “financial lifeline,” says the article.”
I will provide the rest of this article in tomorrow’s post.