In the previous post, I mentioned how difficult it has been for me to speak with Financial planners or Advisors about Reverse Mortgages. As I noted before, even though I was a member of their trade association, NAIFA & supported a local chapter, they would not give me an opportunity to educated them on how the FHA Reverse loan program could benefit their senior clients and frankly, increase their professional image.
Everyone was polite but not interested in what I had to share.
That is finally beginning to change and I’m quite relieved about it, because if a senior or the adult child of a senior is relying on a Financial Advisors guidance in this decision, sadly they may discourage them from considering the Reverse loan as a resource for additional tax-free income.
Here is the remaining article from Reverse Mortgage Daily:
FINANCIAL PLANNERS CONSIDER REVERSE MORTGAGES NOW BEFORE INDUSTRY CHANGES
“While reverse mortgages are most commonly taken out by low- to middle-income seniors, they’re growing in appeal among other demographics, too, said one certified financial planner, noting a trend of more affluent people using the product as a planning tool to fund long-term care and supplemental life insurance.
“Their investments have taken a big hit, and if they have needs that have to be addressed, they’re looking to their house to fund it,” said Dennis Loxton, regional vice president of the reverse mortgage division of First Century Bank in Gainesville, Ga., in the article.
The exits of big-name lenders such as Wells Fargo and Bank of America also makes the future of the program unclear, it continues, going on to mention several industry lawsuits including deceptive marketing charges and allegations of illegal foreclosure procedures against spouses of deceased borrowers.
“While these headwinds are unlikely to cause the reverse mortgage industry to disappear, in the short run they will probably have a negative impact,” says Financial Planner, going on to predict the possibility of consolidation among bigger players, tighter underwriting standards, and higher fees.
The article also explains how the program works and runs through the pros and cons of reverse mortgages.”
{ 2 comments… read them below or add one }
My elderly mother is looking into possibly doing a reverse mortgage on her home and a friend recommended First Century Bank (out of Atlanta) as a good bank, but I can’t find any reviews online.
By any chance, has anyone done a reverse mortgage through this bank and if so would you recommend them based on your experience with them? Thanks.
Hi Fred,
I have no idea who they may be, but the company I represent is Security 1 Lending, one of the largest Reverse lenders in the country. We do have Loan Officers in Georgia (I’m in California) that would be able to help your Mother. Please don’t hesitate to call me at 805-304-3574 and I can answer any questions or concerns that you may have. And if you are okay with her meeting with a consultant from Security 1 Lending, I will refer the appropriate person to you and to her.