Comments on: FINRA Takes Action Against Member for Reverse Mortgage Promotion

By: Anonymous

Anonymous — Fri, 11 Dec 2009 17:35:00 +0000

Mary Schapiro and FINRA have shown zero understanding of Reverse Mortgages in the past and the way they presented this disciplinary action to the public shows their ignorance even further. rnI believe that Mr. Allen was wrong and that RIA’s should not be promising results or guiding seniors’ use of RM proceeds, but FINRA’s announcement, once again, seems to demonize the reverse mortgage more than it does Mr. Allen.

By: michaelpinter

michaelpinter — Fri, 11 Dec 2009 15:35:29 +0000

Mary Schapiro and FINRA have shown zero understanding of Reverse Mortgages in the past and teh way they presented this disciplinary action to the public shows their ignorance even further.
I believe that Mr. Allen was wrong and that RIA's should not be promising results or guiding seniors' use of RM proceeds, but FINRA's announcement, once again, seems to demonize the reverse mortgage more than it does Mr. Allen.

By: Anonymous

Anonymous — Fri, 11 Dec 2009 14:07:00 +0000

Regulators need to hear from real Seniors whose lives have been improved from the proceeds of an FHA HECM. (Even if it’s only the stopping of a mortgage payment for the rest of the Homeowner’s life) I truly believe it is most difficult to make a hard and fast Law that FHA HECM Funds can only be used for living and household expenses. I’ve had Seniors who gave money to special causes while they were still alive because they suspected heirs would not. I once has a an 87 year old female Senior (who was sharp as a tack and still drove better than I) who said: “If you promise to not laugh at me, I’ll tell you what I’m going to do with a little of the money” “I won’t laugh, Beauty (and damn she was–if you young people don’t think 87 year old Women can’t be beautiful, it’s because you are not 71), I said. “Well, She said, “Just one more time, I’m going to buy myself a brand new car.” “Hell, Woman”, I said, “It’s your money, do whatever YOU want with it. If a new car would make you feel better in the last years of your life, then have at it. Just remember, I said, you have to continue to pay your Real Estate Taxes, keep Homeowners Insurance on the place, and maintain the house to FHA standards.” Since the Lady had over a $200,000 line of credit, and She was by nature a most frugal Woman, this was no problem.

By: Anonymous

Anonymous — Fri, 11 Dec 2009 13:19:00 +0000

I applaud FINRA for fining this man and banning him for 60days. In fact, the punishment should have been more severe. rnrnUsing proceeds from a reverse mortgage to sell u201cunsuitable productsu201d to a senior just cannot be tolerated by any segment of the financial world.rnrnBut FINRA is taking a very narrow and dangerous position concerning reverse mortgages. Like many, they are taking the easy way out by simply sticking their head in the sand on this very sensitive subject.rnrnAccording to the article and I quote, u201cAccording to the agency, Allenu2019s firm prohibits engaging in any reverse mortgage business, including the promotion and sale of reverse mortgages.u201drnrnYou would think u201cAllenu2019s firmu201d would prohibit the misuse of a reverse mortgage not the product itself!rnrnLast time I checked there were 620,000 FINRA Reps in this Country. They represent millions if not tens of millions of clients and a good portion of them above the age of 62. Instead of educating this massive group on the proper uses of the proceeds of a reverse mortgage most broker/dealers simply prohibit engaging in any reverse mortgage businessu2026dumb, dumb & dumberu2026.rnrnCome on FINRA! How about creating a Suitability Rule for reverse mortgages rather than turning a blind eye? rnrnWhen is the financial world going to start embracing this product???rnrnrnrn

By: flaguy

flaguy — Fri, 11 Dec 2009 12:28:00 +0000

Go re-read the posts. I was being sarcastic, mentioning Tiger AFTER the scandal broke, with tongue in cheek…. and then told you so afterwards! IT WAS A JOKE, like Saturday Night Live!!! GET IT?? Apparently not! The mention of the three people was to counter your claim that a person cannot be a brand. Are you saying that Tiger is not a brand himself still?rnrnThen, I requested you take this off line – yet you keep bringing it up here.rnrnAre you just salty about my Teddy R. Quote?rnrnJEEZ Critic, get a grip.

By: jamesanelson

jamesanelson — Fri, 11 Dec 2009 12:07:54 +0000

Regulators need to hear from real Seniors whose lives have been improved from the proceeds of an FHA HECM. (Even if it's only the stopping of a mortgage payment for the rest of the Homeowner's life) I truly believe it is most difficult to make a hard and fast Law that FHA HECM Funds can only be used for living and household expenses. I've had Seniors who gave money to special causes while they were still alive because they suspected heirs would not. I once has a an 87 year old female Senior (who was sharp as a tack and still drove better than I) who said: “If you promise to not laugh at me, I'll tell you what I'm going to do with a little of the money” “I won't laugh, Beauty (and damn she was–if you young people don't think 87 year old Women can't be beautiful, it's because you are not 71), I said. “Well, She said, “Just one more time, I'm going to buy myself a brand new car.” “Hell, Woman”, I said, “It's your money, do whatever YOU want with it. If a new car would make you feel better in the last years of your life, then have at it. Just remember, I said, you have to continue to pay your Real Estate Taxes, keep Homeowners Insurance on the place, and maintain the house to FHA standards.” Since the Lady had over a $200,000 line of credit, and She was by nature a most frugal Woman, this was no problem.

By: michaelbanner

michaelbanner — Fri, 11 Dec 2009 11:19:10 +0000

I applaud FINRA for fining this man and banning him for 60days. In fact, the punishment should have been more severe.

Using proceeds from a reverse mortgage to sell “unsuitable products” to a senior just cannot be tolerated by any segment of the financial world.

But FINRA is taking a very narrow and dangerous position concerning reverse mortgages. Like many, they are taking the easy way out by simply sticking their head in the sand on this very sensitive subject.

According to the article and I quote, “According to the agency, Allen’s firm prohibits engaging in any reverse mortgage business, including the promotion and sale of reverse mortgages.”

You would think “Allen’s firm” would prohibit the misuse of a reverse mortgage not the product itself!

Last time I checked there were 620,000 FINRA Reps in this Country. They represent millions if not tens of millions of clients and a good portion of them above the age of 62. Instead of educating this massive group on the proper uses of the proceeds of a reverse mortgage most broker/dealers simply prohibit engaging in any reverse mortgage business…dumb, dumb & dumber….

Come on FINRA! How about creating a Suitability Rule for reverse mortgages rather than turning a blind eye?

When is the financial world going to start embracing this product???

By: kpr2570

kpr2570 — Fri, 11 Dec 2009 10:28:13 +0000

Go re-read the posts. I was being sarcastic, mentioning Tiger AFTER the scandal broke, with tongue in cheek.... and then told you so afterwards! IT WAS A JOKE, like Saturday Night Live!!! GET IT?? Apparently not! The mention of the three people was to counter your claim that a person cannot be a brand. Are you saying that Tiger is not a brand himself still?

Then, I requested you take this off line - yet you keep bringing it up here.

Are you just salty about my Teddy R. Quote?

JEEZ Critic, get a grip.