Bank of America
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.”
Financial Advisors Encouraged to Offer
Mortgages to Customers
January 6th, 2011 | by admin Published in News, Reverse Mortgage
Dow Jones is reporting that financial advisers are being encouraged to work with bankers on getting mortgages and other loans from their clients.
According to the article, Wells Fargo has seen loan originations by advisers increase by 33% this year and originations by advisers who are based outside the bank branches are up 17% year to date, “a great example of how our businesses work together to generate revenue,” Chief Executive John Stumpf said at a conference recently.
Wells Fargo, prior to acquiring Wachovia, was doing about 75% of its business in consumer banking and 25% in commercial banking and wealth management. “One of the real values of this merger is that it really balanced the company,” Stumpf said. “We’re more now 50% consumer and 50% wealth and commercial.”
The greater banking support for Wells Fargo Advisors and increased wealth management support for the bankers has driven up loan originations. The company now is also testing a program that will partner financial advisers with their counterparts in Wells Fargo bank branches. This could increase lending business even more.
At the conference, Stumpf also said the average number of Wells Fargo products its customers have was 9.76 at the end of the third quarter, up from 9.37 at the time of the merger. That is “demonstrating the success we are having at growing deposits, loans and managed assets,” he said.
Bank of America Merrill Lynch says its mortgage applications among advisers are 44% higher in 2010 compared with last year. New securities-based loans increased 62% year over year, and net balances outstanding have grown 30%, the company said.
Reverse Mortgage Daily 1/7/11