Retirement planning requires a solution-based approach

reverse mortgage news

ePath 100K RM leads

“It’s ironic that the biggest source of wealth is locked up in bricks & mortar…”

equity-lockedWhile more financial professionals are embracing the HECM, ironically our cousins across the pond seem to better grasp the concept of home equity management and its role in funding retirement. Is today’s choice of retirement investment vehicles adequate to meet the needs of today’s savers and retirees?  Can asset management live up to it’s name without including a retiree’s largest tangible investment?

Hedgeweek is a blog for hedge fund managers and institutional investors…the big players. Moving in the deep waters of asset management, their recent post recognizes challenges similar to those faced by American retirees seeking to fund retirement. Beyond a lack of saving, individual investors are stymied with a choice of investment products that may not meet their needs.
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Will Our Industry Bounce Back?

ePath reverse mortgage leads


What will it take for our industry to bounce back?

reverse mortgage newsDespite the increasing need of retirees whose largest asset  is typically their home, our industry volume continues to languish. Is it because our market is dysfunctional as the Mortgage Professor opined due to fear, confusion, and ambiguity? It is the increasing burden of regulation, product changes, and reduced lending ratios?

Mark Miller penned a column in WealthManagement.com that warrants consideration and reflection for HECM professionals entitled “Are reverse mortgages on the comeback trail?”. He asks the question, “will financial planners resuscitate the reverse mortgage?”. One could argue that recent changes to the HECM program have pushed the loan into the realm of…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary, and technology? Visit ReverseFocus.com today

HECMs vs. The Establishment

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The Financial Planning “Establishment” Still Reluctant About HECMs

reverse mortgage newsTo use a political analogy, reverse mortgages are the anti-establishment candidate. Long viewed as a loan of last resort, criticized for high costs and maligned by many consumer groups as being fraught with pitfalls the new reverse mortgage continues to push against the financial establishment for its place at the table of retirement options.

A recent article in the Retirement Income Journal outlines why many financial advisors and reverse mortgage professionals don’t get along. To be fairer let’s say ‘see eye-to-eye’. Yes, despite the numerous uptick of interest in the HECM within the financial planning community, most do not recommend nor consider a reverse mortgage according to the article. “As a practical matter, advisors who don’t have mortgage licenses can’t make direct commissions from a HECM or earn a finder’s fee for a HECM referral…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary, and technology? Visit ReverseFocus.com today.

A Lucrative Option?

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Reverse Mortgages hold advantages for the ‘mass-affluent’

reverse mortgage newsReverse mortgages can be a valid retirement planning tool for those in need of cash but also for those who are financially well off.

Last Monday the Huffington Post published “Is a Reverse Mortgage a Lucrative Option with your Financial Situation?”. Cited in the article was a white paper published by Edinboro University stating that using a HECM line of credit is more lucrative than selling investments. This speaks to the mass-affluent borrower with substantial retirement savings and investments as opposed to the needs-based-borrower of the past.

Beyond merely preserving the portfolio by not selling depreciated assets the study cites the tax benefits. “Commonly, retirees will use 401(k) funds, or other savings to pay off a mortgage. But if there’s enough equity in the home, the reverse mortgage could be used instead of using tax-deferred savings.” A good point since qualified…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Security One Releases Financial Adviser Portal

FOR IMMEDIATE RELEASE

Security One Lending Releases Financial Adviser Portal

www.FundingLongevity.com to be an educational portal for Retirement Planning Professionals

San Diego, Calif., June 3, 2013—Security One Lending (S1L), a division of Reverse Mortgage Solutions, Inc. (RMS) announced today that it has built and released an educational portal that allows Financial Advisors to determine whether a Reverse Mortgage, coupled with other asset management/investment strategies, solves one of the biggest retirement risks…outliving one’s assets. The term “Funding Longevity” best describes this risk during the distribution phase (versus asset accumulation phase) that concern many retirees today.

Reverse Mortgage SolutionsThe simplicity of this site will allow S1L’s Loan Originators to effectively bring value to the Financial Planning/Advising community. S1L has been very active in the Financial Planners of America, (FPA) national and local chapters in educating the value a Libor-Based HECM Saver can bring their clientele. Tremendous progress has been made to date, and S1L believes this channel of production will play a role in expanding the Reverse Mortgage Industry.

“Our sales force is made up of some of the best professionals in the industry, all of whom are committed to the financial well-being of the senior homeowner,” said Torrey Larsen, EVP and President of Retail Lending of RMS/S1L. “To that end, S1L has established a formal “business incubator” that has been designed to perfect the most important growth initiatives for the industry. Within this division of the firm, the best ideas are prioritized for execution. From that point, the testing and development phases begin while working hand in glove with the impacted industry leadership groups for quick business execution. The Financial Advisor/Planner component represents one of four current projects managed within the incubator leadership team. We will leverage the team’s collective knowledge and experience to deliver the best possible service to our referral partners and their customers.”

Unlike other reverse mortgage lenders, S1L does not rely solely on leveraging the existing RM market, but, rather, looks to the future of the industry and builds new value propositions for delivery to its Origination force.

“Our customers (Originators) can rest assured that we are building a variety of business channels and initiatives that will move the needle for the retail business and secure relationships that have been difficult to reach during the past five years. RMS is very excited about these growth opportunities and the thoughtful process we have engaged to do it the right way”, stated Mike Kent, EVP and President of RMS’ Origination Business.

About Security One

Security One Lending is the Retail Lending division of Reverse Mortgage Solutions, Inc. RMS, which is owned by Walter Investment Management Corp., operates a coast-to-coast, origination, servicing and issuing business.

For more information on Security One Lending, visit www.s1l.com for more information about RMS, visit www.rmsnav.com.

About Walter Investment Management Corp.

Walter Investment Management Corp. is an asset manager, mortgage servicer and origination focused on finding solutions for consumers and credit owners. Based in Tampa, Fla, the Company has over 4800 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company’s website at www.walterinvestment.com
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