What they’re not telling you

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ePath 100K RM leads

HECM originators: the silent objection for many older homeowners is using up their home equity

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When you sit down with a potential reverse mortgage borrower, you know they didn’t invite you over for a cup of coffee. Before they clicked on your ad, picked up the phone or sent in a card there was an underlying need or concern that motivated them. The most successful originators don’t dive into how a Home Equity Conversion Mortgage works but instead ask them what they would like to accomplish. A wise approach that cuts through the minutia of the loan and isolates underlying motivations. Despite their intentions, there may be one silent objection they are not sharing- their apprehension in using home equity…

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Retirement planning requires a solution-based approach

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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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Now or Later? That is the Question

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The Cost of Waiting & Hedging Against Falling Home Values

reverse mortgage newsPerhaps it is laughable to some to even consider hedging against falling home values. After all homes across the nation have appreciated nearly to their pre-housing crash levels. How quickly many homeowners forget the harsh lesson learned in 2009 that what comes up may come down. The truth is beyond being a source of cash flow or a retirement planning option, reverse mortgages can help older homeowners hedge against the risk of falling home values. Even worse, those who wait for their homes to appreciate could end up losing a substantial portion of their borrowing power when interest rates increase.

Jack Guttentag, better known as The Mortgage Professor, addressed the considerations of waiting to get a reverse mortgage in his recent column in the Huffington Post entitled “Should You Take a Reverse Mortgage Now, or Would It Be Better to Wait?”

Guttentag begins by describing the notable difference in the sense of urgency that a homebuyer has versus a potential reverse mortgage borrower. “ A prospective home buyer…

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