I am going to share another section of the article that I previously posted about how gradually, the financial planning community is becoming more open to the benefits of using funds from a Reverse loan, as part of a financial plan.
They have long held the belief, that these federal and insured loan programs, were inappropriate for their clients and viewed them very negatively. And frankly, they did not understand them at all and in some cases, believed the same myths about ownership and costs as the general public did.
The typical comments I would and still hear, is that the Bank ends up owning the home at the when the borrower dies ( wrong) and that they are too expensive. Wrong, again. And as a matter of fact, I posted a video on my other blog discussing the fees associated with originating a Reverse loan, as compared to traditional financing.
You can take a look at that video and my lovely face by clicking on this link.
Here is the second of three parts of the article I want to share with you.
Investment News: Reverse Mortgages Recast for Financial Planners. Posted by Alyssa Gerace 2/19/14
‘“We in the reverse-mortgage lending industry find financial advisers are subject to the same myths and misconceptions as the general populace,” Shelley Giordano, director of business development for Security 1 Lending, told Investment News. “We thought if we could bring together some thought leaders from various disciplines, we could focus on what’s new in terms of housing wealth in the retirement distribution phase and help Americans have a more secure retirement.”
Giordano is chairman of the reverse mortgage industry’s Funding Longevity Task Force, which includes members like John Salter, a tax attorney specializing in pension matters; Harold Evensky, president of Evensky & Katz Wealth Management; and Shaun Pfeiffer, a professor of personal finance at Edinboro University.”