“AARP certainly knows how to throw rocks from within their glass house. The last post explains why. I am a retired insurance person and I'm not selling anything. I have been to free lunches/etc., to observe, but never hosted one.
I see from the posts that there is a little larceny in some seniors. It's free so why not take advantage and lie about your name while at it.
It is sort of revenge for the bad apples out there trying to scam us, I I sort of agree. But, some of these seminars offer legitimate products from quality issuers and offer valuable information, so try and separate the wheat from the chaff.
If you find a good financial adviser, you should be buying Him/her lunch.
As far as spying on a seminar, I have less of a problem if either the spy makes no comments and also fills out the form as a spy, or identifies him/herself in the beginning. (Can I get a doggy bag?)
Of course, it still is inherently sneaky”
Posted: June 20, 2009 6:02PM EDT

Here is the interesting prior post by flyer574:

“AARP was founded for the specific purpose of selling insurance and financial products to seniors. What you may not know (or remember) is that AARP in 1997 signed a $51,000,000 settlement with IRS. This was because AARP was considered a for-profit organization, and was forced to split AARP-the lobbyists from AARP-Services. And they are forever saying how their medigap supplements are the only ones ENDORSED by AARP. Well, which AARP? The for-profit or the lobbyists??? And for this group to set up a gestapo-like organization is stupid, unconscionable and should be ignored. And yes, I am an insurance broker, do indexed annuities, and occasionally seminars on reverse mortgages.. I am completely compliant with what I can and cannot do. And frankly, I wouldn't do anything to mislead seniors. Don't need to go that route. I'm 70 and still quite active with my client base. So, if you want to bring a checklist, that's fine. However, I've learned NOT to feed other senior platelickers! You want to hear what I have to say? Great! Ask you to buy something? NEVER. Meet with me in private? Of course. America is still the land of opportunity in spite of my age and barriers to success. So there.”
Posted: June 15, 2009 2:33PM EDT

It's not great for seniors that benefits may decrease, however from the standpoint of making the program stomachable for investors I understand it.

In 2005, 2 bedroom homes in Compton, California were going for $500,000. If I was a smart Compton resident (well, if I were smart I wouldn't live in Compton, but play along…) I'd sure as hell reverse mortgage or HELOC or do whatever I needed to pull the equity out before my house was only worth $80,000 again.

Well, an investor can be left holding the bag there, and lest you claim that the risk has passed, what about Harlem? To my knowledge condos there are still going for $700k+ in some instances.

Moreover, I'm not an actuary. I've met a lot of you folks who run around signing people up for reverse mortgages, and, many of you are very, very nice, but most of you certainly are not actuaries. So neither I, nor most of you reading have any idea what the prudent amount to let someone take out is… just food for thought.

BusinessWeek magazine says that in the past questions have arisen about whether AARP's commercial interests may conflict with those of its membership, and characterizes many of the funds and insurance policies that AARP markets as providing considerably less benefit than seniors could get on their own.

In an editorial column in the Los Angeles Times, critic Dale Van Atta wrote that AARP does unauthorized lobbying for its membership, and lobbies against the best interests of its membership. Van Atta says that by lobbying for the Medicare Prescription Drug, Improvement, and Modernization Act, AARP leaders betrayed the membership.

I would not be surprised to see an AARP-endorsed reverse mortgage lender emerge. It remains to be seen whether the AARP-endorsed reverse mortgage will provide a greater benefit to the senior than those available from other sources.

This is absurd. Our economy dictates just the opposite should be happening. Our seniors can't face any more reduction in what they get from a reverse mortgage. The HECM program will wind up becoming useless, is this what they are trying to achieve, doing away with the HECM? We are finding it difficult as it is to pay off existing mortgages due to the drop in housing values.

AARP is needed more than ever to come to the aid of the senior and the entire industry. They need to join forces with NRMLA and fight this Tooth and Nail. NRMLA can't fight this alone. Peter Bell did a good job in his letter to the National Mortgage News representing our position on this appropriations bill. However, AARP has strength by its pure size. Mr. Bell, you have my support and I am sure many more join me. If I can be of any assistance, please call on me.

Regards to all,

John A. Smaldone