Housing Crisis in the Coming Years

I am going to share the next section of the article that discusses the concerns of a new Housing Task Force that will try to determine where the risks and the solutions are for an aging population.   And Reverse loans are part of that discussion.

Housing Task Force Sees Merits of Reverse Mortgages – Posted by Jason Oliva on March 30, 2015

“While various reports cite seniors’ unwavering desire to remain in their homes for as long as humanly possible, their homes are often ill-suited to permit them to do so. It is through this disconnect where reverse mortgages, which have historically touted their ability to facilitate these desire, claim their role in the broader aging in place picture.

“[Reverse mortgages] are appropriate for some people in some circumstances,” said Henry Cisneros, task force member and former secretary of the Department of Housing and Urban
Development (HUD). “We don’t start with the view that reverse mortgages are dangerous for people and should be avoided.”

Cisneros, who has been a proponent [1] for reverse mortgages in the past, is joined on the Task Force by fellow former HUD Secretary and former U.S. Senator Mel Martinez, and former U.S. Representatives Allyson Schwartz and Vin Weber.

Acknowledging certain people may have been negatively affected by reverse mortgages as a result of bad judgement in the past or influenced by “unscrupulous players,” the commission generally views the loans play a role in helping seniors age in place, but only if used in the right context.”

The remainder of the article discusses the importance of having the correct information about how Reverse loans work and their importance in retirement planning.   Rather than being seen as a loan “of last resort”, it’s important for Advisors and the borrower to thoroughly understand the details of the HECM Reverse loan before making any decisions as to whether or not it is an option to age in place.

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