Comments on: Choice Home Mortgage Adds to Exclusive Reverse Mortgage Group

By: dduck12

dduck12 — Mon, 23 Nov 2009 12:59:58 +0000

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.).

By: jamesanelson

jamesanelson — Mon, 23 Nov 2009 12:46:21 +0000

I suspect, Critic, a “financial panning tool” apparently has different meanings for different people. To a Senior working part time at a telemarketing firm to
make ends meet while using the $1000.00 monthly for living expenses instead of making a $100,000 mortgage payment because of an FHA HECM mortgage–that is a financial planning tool. You may not call it that, but the Senior Widow does believe me. Thus was not an easy loan to place. The subprime debacle had davistated her home value; a serious auto accident
left an $11,000 Emergency room bill at a US Military Hospital which according to FHA Regulations has to be paid at closing (The “Good Hands” people had yet to pay the legitimate claim.) (In certain metro areas with a large retired and active military population, the US Military Hospitals are in the metro Trauma Room hospital rotation.); the $100,000 mortgage at her age left just a few hundred dollars for her at closing; but stopping that $1000.00 mortgage payment was a Godsend to her. My heart really went out to this Lady who is in poor health: A lifetime of losing two Husbands prematurely, one bedridden Husband she took are of for 10 years while changing his bedding twice daily; struggling to raise six children practically by her self; and always working at various part time things to try to make ends meet. In the last years of her life, this Lady deserves the “financial planning tool” of an FHA HECM: You may not call it that, Critic, but I
assure you she does. Hooray for the addition of Mr. Frank Miller to our Reverse Mortgage Family; sounds like a pretty good man to me.

By: REVGUYJIM

REVGUYJIM — Mon, 23 Nov 2009 12:22:13 +0000

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.

By: The_Critic

The_Critic — Sun, 22 Nov 2009 21:58:27 +0000

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 they 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 property taxes? 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 along with their financial planning credentials.