Financial Planners Receive Reverse Mortgage Education... Part 1 of 2
I feel now, more than ever, financial planners will be a lifeline for the reverse mortgage industry moving forward.
Security One Lending, and it's parent company, Reverse Mortgage Solutions, seem to think so as well. According to an article, published in Reverse Mortgage Daily, they plan to establish an advisory board designated toward eliminating reverse mortgage misconceptions among financial planners and regulators.
The changes to the reverse mortgage program were implemented to make the program a lot safer for consumers. In truth, the advisory board will help combat a lot of the misconceptions about the reverse mortgage, especially, the fact that they are "unsafe" for borrowers. By ensuring that future borrowers continue to be well aware of their responsibilities via reverse mortgage counseling and mandatory set-asides, any current misconceptions should be taken care of.
In the future, it'll be important that financial planners realize how crucial a reverse mortgage can be in most situations, especially for borrowers who have not saved enough and are hoping to secure an extra boost of cash flow for any future "rainy days".
Torrey Larsen, president of retail lending for Security One Lending said:
“Security One Lending and RMS believe future growth for the Reverse Industry will be driven in large part through the utilization of the HECM as a part of one’s overall financial plan. The ability to have this group of “thought leaders” from the financial advisory and research communities provide strategic guidance to S1L’s evolving Financial Advisor model is extremely valuable.”
Some financial planners have been climbing on the reverse mortgage bandwagon for some time now though. Brian Rezny, a financial planner, offers the reverse mortgage to about 90% of his clients (after careful consideration of their person situation). Lifestyle, to Renzy, is a decisive factor in each of these cases. If his clients aren't willing to change their habits, whether they are in financial trouble, or hoping to avoid it, he sees no need for the program.
Moving forward, Security One Lending is taking the necessary steps in order to educate borrowers, lenders, financial planners, Realtors, etc. as the new changes come into play. Specifically, making sure that the reverse mortgage's reputation adapts to these changes. Often seen as a last resort, the changes will, hopefully, make the reverse mortgage what it used to be...a viable tool for retirees hoping to age in place.