Gradually the negative image of a Reverse loan that has been historically held by the financial planning community, is beginning to change. It’s been a long process, but many financial planners are beginning to see the positive benefits of the HUD loan program as part of an over-all retirement plan.
Following is a recently published article that discusses this change in the attitude of many financial advisors. The remainder of the article will be in a follow-up post.
Investment News: Reverse Mortgages Recast for Financial Planners
Posted By Alyssa Gerace On February 19, 2014 @ 5:06 pm In News,Retirement,Reverse Mortgage | No Comments
Reverse mortgages could get recast from their commonly-perceived “loan of last resort” role to that of a financial tool for retirement if industry lenders get their way, says a recent Investment News article [1].
Despite more than two decades of being seen as a financial lifeline for seniors who are house-rich, cash-poor, reverse mortgage lenders are hoping research from leading financial advisers paired with new rules from the Department of Housing and Urban Development will change the product’s role, says the article.
“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.”