Reverse Mortgages: The Only Option for Some People

Predicting a “massive boom coming” for the reverse mortgage business, Vishaal Bhuyana, founder, V.B. Bhuyan & Co., says it will be none too soon for seniors who will need the increased home equity “to pay off debts incurred during the current economic crisis.”

And, such financial obligations may extend out for quite some time, according to Edwin Pittock, president, Society of Certified Senior Advisors, who figures that “in the next 11 years, the over-50 segment of the U.S. population will increase by 74 percent.

The longevity picture is especially bright for men, according to Peter Klein, director of life settlements, Capitas Financial, Littleton, who says “male life expectancy is increasing dramatically as a result of statin drugs and defibrillator devices.”

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But, Richard Green of Senior Security warns that revived property equity could entice “many insurance agents and marketing directors to regard the equity of senior’s homes as new money for the sales force. I hope we can keep predatory insurance agents and mortgage loan officers at bay,” says Green. “I really believe senior citizens deserve an objective, accurate and fair shot at securing a safe and high quality of life in the community for as long as is practical. I believe [reverse mortgages] are unique and the only option for some people.”

Neil J. Morse has been a communications professional working in the mortgage finance industry for more than a decade, currently specializing in the reverse mortgage sector. He can be reached at nmorse@morsecommunications.com

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  • I don't think Mr. Green is too biased, but it would be fairer if he said “some”, instead of many, in this quote: “many insurance agents and marketing directors to regard the equity of senior’s homes as new money for the sales force.” Also, nice would be “some” inserted for: “I hope we can keep predatory insurance agents and mortgage loan officers at bay,”. One, could almost use his remarks to describe “some” legislators and regulators, all well meaning folks, I'm sure.

  • Mr. Morse,

    I normally enjoy reading your articles. This article was interesting until reading the last paragraph.

    I do not mean to be overly critical but don't we already have enough comments like Mr. Green's in the media already? There was nothing particularly novel, insightful, or helpful in his comment. His comments are typical of those who do not understand the counseling requirement. What is troubling is his condescending description “…the only option….” It is as though it could not possibly be a viable and responsible choice.

  • I agree that reverse mortgages are a great product for seniors, and I would really love to see a boom in reverse mortgages so that we can see more seniors’ lives improved. The question I have is how are we going to accomplish such boom when some law makers, regulators and legislators, don’t seem to realize that this product should be indeed to help seniors??? – With current national chaos in the Housing and Mortgage industry where home values have marked a record low, how can we allow raising the margins for the benefit of the “giants”, not to mention the proposal to increase the cost of MI? – I think the wish and intent to keep this product safe and productive for seniors is great, yet please notice: there is a group of decision makers that is obviously loosing perspective and those are not precisely retailers…

  • I totally agree with you with potentialities of Reverse Mortgage. For over two years I have been warning about this Economic Cris. However, it is not here for a short period of time taking into consideration our Government debts and the debts of the coming Babyboomers. They will be close to 78 million with 90%to 100% debts themselves. We have to take into consideration that Reverse Mortgage is very secure place for our Seniors. Sofar, this is the only Industry without Mortgage Foreclosures since they don't have Mortgage to Pay. I am doing some re-search on the tendency of the Babyboomers and the Reverse Mortgage. I am looking for your input and your comments.Pierre

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