The Reverse Mortgage Industry Teams Up with Financial Planners
There’s been a push for financial planners to team up with lenders as soon as the reverse mortgage changes were implemented. Personally, I think financial planners will provide a big boost to the reverse mortgage program. The program has changed, in a way that has made it more suitable for affluent seniors looking to plan their retirement fund for the proverbial rainy day.
However, while working with financial planners may be the next frontier for reverse mortgage professionals, and the industry in general, that’s not to say that all financial planners will be one size fits all. In fact, lenders should take heed and pair up with financial planners who have their same interests in mind, while offering their clients an alternative to previously established retirement planning funds.
Michael Kitches, a financial planner as well as partner and director of research for Pinnacle Advisory Group shared his option on the matter during the annual National Reverse Mortgage Lenders Association conference at the beginning of November:
“You are working from a significant trust deficit. There are a lot of negative perceoptions about the anture, costs and consequences of a reverse mortgage.”
It seems financial planners have to overcome the same hurdles professionals do. Reverse mortgages have gained an undeserved reputation, mainly from private lenders who originated reverse mortgages that were not insured by FHA, which left homeowners with a susbtantial amount of debt when the amount become due and payable.
It’s crucial the public understands that this is no longer the case. Reverse mortgages are insured by the FHA, they are non-recourse loan, and they are safer than ever before, for both consumers and the FHA.
All challenges aside, the reverse mortgage industry will do well to partner with financial planners and advisors because they may have clients that will benefit greatly from the new reverse mortgage program. They first need to know about the changes as well and educate themselves about new program.
Kitces concluded by saying:
“It looks way better to keep a mortgage in retirement through reverse than forward.”
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 don’t pressure those who inquire. We are simply here to help.