It is fascinating to see yet another expert in financial planning declare reverse mortgages to be a financial planning tool. One recently described it as complex and now another as serious.

Each has declared reverse mortgages are not just mortgages. In what significant way does the fixed rate HECM differ from any other nonrecourse mortgage other than there are no required payments of interest or principal? Truly the adjustable rate HECM has some unique aspects such as its line of credit, and its tenure and term payouts.

I am no licensed or certified financial planner but this discussion seems important. As Senator McCaskill begins her inquiry into the use of proceeds through the HUD survey, it seems relevant that this insight be propagated so that we can more fully explain to the legislative staff of our Senators and Representatives why the use of proceeds should remain as is.

One of the commentators recently explained at great length his extensive experience in teaching financial planners about reverse mortgages and stated how he was on some state board of financial advisors or something like that. However, he never attempted to explain why the product is a financial planning tool.

This would be a great interview. Maybe either Admin or Neil Morse can provide an in-depth look at reverse mortgages beyond the basics through the eyes of a financial planning expert. It would be helpful to know their financial planning credentials as well.

I couldn't agree more. The articles I've been able to find in the financial planning 'press' do little more than attempt (often poorly) to explain the reverse mortgage program itself; not how it may be beneficially integrated into an individual's overall financial plan. The positive insights of a credible expert would go a long way toward breaking down the barriers that exist between this product and much of the financial planning community. The industry may need to take affirmative steps toward securing such expert opinion.

I am no "expert" financial planner, but to me, any mortgage is a serious financial planning tool. It often involves a great deal of money and a long-term commitment to either making payments, or the accrual of interest, and it is obviously an obligation. (Please forgive me if I make some technical errors, you guys are the experts.) I don't know why it can't just be called a financial planning tool if any modifier gets people nervous.
You don't have to be an expert of any kind to see that the RM simply provides a source of money for various uses (some serious like paying off a mortgage, providing needed cash flow, paying for medical costs, etc.).