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Recent HECM Changes Opening Minds
Are reverse mortgages a useful retirement tool or a bad move for today’s retiree? That is the question addressed in CNBC’s recent article in age-based investing.
It should come as no surprise but anytime you turn conventional wisdom on its head you will get resistance from most. The Home Equity Conversion Mortgage turns the conventional American wisdom of paying one’s home off before retirement and keeping the home encumbered upside down. However in today’s world of retirees being ‘upside down’ in retirement preparedness more financial professionals and media pundits are beginning to question conventional wisdom when it comes to home equity.
The column begins by citing recent improvements in consumer protections increasing the comfort of financial advisors recommending the loan. Ironic considering that many of the HECM’s recent changes met strong resistance yet they may be the very factor that finally expands the program’s marketshare which has hovered at a mere 2% of eligible households for years.
Rita Cheng, a certified financial planner and CEO of Blue Ocean Global Wealth said…
Download a transcript of this episode here.
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