“Reverse Mortgage is No Longer a ‘Loan of Last Resort,'” Says FINRA
The Financial Industry Regulatory Authority has declared that the reverse mortgage, or Home Equity Conversion Mortgage, is NO LONGER a “loan of last resort,” thanks to research conducted by a Funding Longevity Task Force.
According to an article published by Reverse Mortgage Daily, FINRA has removed the statement from its published investor alert after looking over the research conducted. The Security 1 Lending assembled research team came together with one goal in mind: end any and all misconceptions surrounding the research mortgage program.
If FINRA’s actions say anything is that, at least where the financial planning industry is concerned, reverse mortgages are quickly shedding their less than ideal reputation and becoming a more advantageous strategy for long term retirement planning.
The data collected from well known academics such as Gerald Wagner and Jack M. Guttentag (“The Mortgage Professor”) has led to findings which prove that home equity, when used conservatively during the early years of retirement, can sustain cash flow during the later retirement years.
The senior vice president of S1L has stated in the same article:
“I am pleased that FINRA has made this important change to their Investor Alert but there is still much work to be done.”
Indeed, there is still a lot of work to be done but this is a vote of faith for the reverse mortgage program. Not only can the industry begin to shed their “loan of last resort” reputation and embrace their future as a profitable retirement planning tool.
Reverse mortgages were never intended to be a loan of last resort, even when it was pigeonholed as such. With the help of the financial planning industry, and considering the changes that were implemented last September 30, the reverse mortgage going back to basics.
And that’s a very good thing.
Interested in a reverse mortgage or simply want more information? Give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.com. We do not pressure those who inquire. We are simply here to help.