After years of bias against the use of a Reverse loan for retirement planning, it seems that Financial Planners are finally becoming more open minded about them and less hostile about their use.
When I first began my profession as a consultant 14 years ago, I thought that they would be open to the consideration and alternative of using a Reverse loan for some of their clients. But I was totally incorrect, as I was met with nothing but negativity by the members of NAIFA (And others in that profession) in which I was a member of on more than one occasion.
I would attend their meetings and certainly offer my support by paying my dues and being part of their Young Advisors Team but it was definitely an “Old Boys Club”, with just a few women members. Everyone was polite but not interested in what I had to share and needless to say, it was discouraging to be met with nothing but walls….
It was extremely frustrating to met an Advisor with a smiling demeanor and attempt to engage them in a conversation, but they barely concealed their negative attitudes when I would introduce myself to them as a Reverse Loan Consultant.
And I have to say, that typically they were always older men. Set in their way of doing business and they certainly didn’t have the time or interest in anything I had to share that could possibly be a benefit for their clients.
However, I did create a few relationships during that period of time because at the least, they “liked’ me, they just weren’t interested in what I had to share with them, as they had already made up their minds that a Reverse loan was not a good option in any scenario for their clients.
And their negative reaction was due to the lack of education and understanding about the FHA loan program for seniors. But it seems that in the last few years, the financial planning industry is beginning to consider their use for retirement planning as an additional and crucial element for their clients.
Their own trade magazine Financial Advisor has published some very positive articles and studies supporting the use of Reverse loans for retirement planning along with “The past year alone saw a plethora of reverse mortgage commentary from the financial planning community, including articles and blog posts on the “new” Home Equity Conversion Mortgage (HECM), as well as research papers published in prominent trade journals such as the Journal of Financial Planning and the Journal of Retirement”.
So after so many frustrating years there has been a shift in attitude and the younger and newer members of this industry, want to learn about Reverse mortgages and how they can extend the life of an existing retirement plan.
A professional “corner has been turned”. Retirement planners are now receiving the necessary education to help them determine whether or not, using the funds from a Reverse loan is a viable option for their clients as they move into their retirement years.
And personally, I am finding that now when I speak with one, they are sincerely interested and open to the suggestion and ask me questions as well.
What a difference….