Over the past few weeks I’ve been seeing hearing from more people about their frustration with AARP and their support (or lack there of) for reverse mortgages.
Whether or not you like AARP, the organization has been supportive of the program and the industry. For example, while most people are quick to say that AARP has done nothing to stop legislators from lowering the principal limits for reverse mortgages, it’s just not true.
Below is a letter which showing that AARP was involved in trying to get Congress to provide the full $798 million requested by the Obama administration for the Home Equity Conversion Mortgage (HECM) program.
Like the majority of the industry, AARP felt that the Congressional Budget Office’s budget assumptions for the HECM program were overly conservative and the $798 subsidy isn’t necessary to maintain the soundness of the HECM program.
If you read the entire letter it’s clear that AARP is very supportive of the program and is working alongside the National Reverse Mortgage Lenders Association to reach out to Congress. What the letter doesn’t show is the other work which has gone on behind the scenes by NRMLA and AARP.
Lets also not forget about AARP’s recent 30 minute segment on the product which was very fair and informative. As we all know, it’s easy for media outlets to take the negatives and run with it but AARP decided not to and did a service to its viewers and our industry by doing so.
However, none of what I’m saying here means that AARP might not have some sort of ulterior motive. It’s no secret that AARP makes a significant amount of money from working along side companies to promote products/services and its not clear whether or not they plan on doing this with reverse mortgages.
What’s clear is that AARP is supporting the development of the reverse mortgage industry and its E-Street feature and this letter are proof. So please stop with the emails bashing AARP.