Seniors Pleased With Reverse Mortgage Experience says Poll

Despite concerns from consumer advocates about the suitability of reverse mortgages, results from a new poll show that almost 75 percent of reverse mortgage borrowers described their experience as a positive one.

The data comes from a survey conducted by Marttila Strategies on behalf of the National Reverse Mortgage Lenders Association which polled 600 consumers with reverse mortgages.  Of those borrowers, 43 percent of respondents declared they had a maximum level of satisfaction with the whole experience.

The scope of the survey expanded beyond reverse mortgage borrowers and reached a total of 1,800 seniors and their adult children in October.  The results reveal the economic recession has impacted older Americans so much that nearly 50 percent worry they will not have enough money to support themselves in retirement.

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“This survey confirms that seniors are experiencing significant anxiety about the economy, funding their retirement, and their ability to meet even the most basic needs,” said John Marttila of Marttila Strategies.  “This includes remaining in their homes and keeping up with living expenses.”

Survey results show that more than 80 percent of respondents said they would like to stay in their homes throughout the retirement years, but one in four seniors believe they will not be able to cover their monthly expenses to stay in their home without additional cash flow.

In addition, given their concerns about the ability to afford monthly expenses, both seniors and adult children with aging parents agreed that the current economic climate, the wisest financial strategy is to use income and assets to cover living costs rather than leave an inheritance for the next generation.

“Without increased social security benefits, retirement funding will need to come from seniors’ own personal resources,” said Peter Bell, president of the National Reverse Mortgage Lenders Association (NRMLA). “In light of reduced stock and bond portfolios, seniors will have to consider other asset pools, including the use of home equity, to help fill this financial shortfall.”

Results also showed that seniors with reverse mortgages fully grasped the financial terms associated with the product, with 75 percent saying they understood the financial terms well or very well.  Finally, 90 percent of all seniors who selected a reverse mortgage as a retirement security solution felt no sales pressure, and the same proportion indicated they were more than adequately informed about this financial product.

“This research validates that seniors with reverse mortgages are pleased with their loans and with the experience of obtaining them,” Bell said. “Clearly, reverse mortgages are an effective tool to enhance borrower retirement security and quality of life.”

More evidence that reverse mortgages could be used as a way to fund home health care.

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    • Senior Clarity,

      Why a larger sample? If the report is based on a statistically valid sample, more data will distort and invalidate the results. I do not understand your reasoning.

      While I like the old AARP study results better, the results of this study are probably much more statistically valid. As a life long student I look at a 75% satisfaction rate as average not particularly outstanding. However, seeing a 43% maximum satisfaction rate is outstanding.

      It woud be interesting to see when after funding these results were measured. I hope they cover the entire period of the existence of the program. Further it would be good to know if the 75% claiming to know the financial terms of the reverse mortgage came from self assessment or an objective evaluation.

      I hope the report is issued quickly.

  • Critic,

    Asks a good question, when will the report be released. I do not doubt the reports statistics, in fact, I am surprised they are not higher than a 75% satisfaction rate..

    Most of us pro’s in the business experience at least a 90% + satisfaction rate. We experience that high of rate because we do what we are supposed to do for our clients. We also have the passion for the business to make sure our seniors are satisfied and understand the program they are getting into.

    The bad publicity we have been getting is not based on customer complaints or customer dissatisfaction. It is based on to many bureaucrats interfering in an area they do not understand. It also has to do with certain politicians that want the program to go away. They want it to go away because they will not take the time to learn and understand the product and the intricacies of the program. These little minds feel the program is to good to be true, it has to be a scam from their way of thinking.

    I tell you this my friends, what we need to do is for us, the pro’s, put on an educational workshop on reverse mortgages in the lobby of the Whitehouse, I am being serious! We would load the place with happy seniors because they have a reverse mortgage. We will invite all the advocacy groups, the McCaskill’s of the world and even AARP!

    I tell you this and I am not making a joke of it, as I had said, am dead serious. If we were to accomplish this, we would have every major newspaper and TV station covering the workshop. Maybe then, all these folks including the public would start understanding. One thing is for sure, everyone would finally start realizing the real truth about how good a reverse mortgage is for our seniors as well as for the economy!

    What do you all think of that my colleagues?

    Have a good day,

    John A. Smaldone

    • John,

      It is a little over the top for my taste but that is okay. I appreciate your passion.

      I think some will be disappointed to find out that their rating based on ratings taken at termination are probably not what they think they are. Remember the kids alone have much different feelings at termination than they do at funding as do many surviving borrowers who are disappointed with the size of their remaining equity.

      I hope you have a great weekend.

      • Critic,

        Thanks, I did have a good weekend, I hope you did as well. I understand what you are saying but I feel we as an industry are so misunderstood. We need to fight back some how. My suggestion having an educational workshop at the Whitehouse is aggressive and maybe can’t be achieved.

        This was one way to get noticed and maybe a chance to tell the real story for a change. Oh well, enough of that. I just wanted to thank you Critic.

        Have a great day,

        John Smaldone

      • Critic,

        Thanks, I did have a good weekend, I hope you did as well. I understand what you are saying but I feel we as an industry are so misunderstood. We need to fight back some how. My suggestion having an educational workshop at the Whitehouse is aggressive and maybe can’t be achieved.

        This was one way to get noticed and maybe a chance to tell the real story for a change. Oh well, enough of that. I just wanted to thank you Critic.

        Have a great day,

        John Smaldone

      • John,

        You are welcome and I am glad to hear you enjoyed your weekend. Take care of yourself.

      • John,

        You are welcome and I am glad to hear you enjoyed your weekend. Take care of yourself.

    • John,

      It is a little over the top for my taste but that is okay. I appreciate your passion.

      I think some will be disappointed to find out that their rating based on ratings taken at termination are probably not what they think they are. Remember the kids alone have much different feelings at termination than they do at funding as do many surviving borrowers who are disappointed with the size of their remaining equity.

      I hope you have a great weekend.

  • Critic,

    Asks a good question, when will the report be released. I do not doubt the reports statistics, in fact, I am surprised they are not higher than a 75% satisfaction rate..

    Most of us pro’s in the business experience at least a 90% + satisfaction rate. We experience that high of rate because we do what we are supposed to do for our clients. We also have the passion for the business to make sure our seniors are satisfied and understand the program they are getting into.

    The bad publicity we have been getting is not based on customer complaints or customer dissatisfaction. It is based on to many bureaucrats interfering in an area they do not understand. It also has to do with certain politicians that want the program to go away. They want it to go away because they will not take the time to learn and understand the product and the intricacies of the program. These little minds feel the program is to good to be true, it has to be a scam from their way of thinking.

    I tell you this my friends, what we need to do is for us, the pro’s, put on an educational workshop on reverse mortgages in the lobby of the Whitehouse, I am being serious! We would load the place with happy seniors because they have a reverse mortgage. We will invite all the advocacy groups, the McCaskill’s of the world and even AARP!

    I tell you this and I am not making a joke of it, as I had said, am dead serious. If we were to accomplish this, we would have every major newspaper and TV station covering the workshop. Maybe then, all these folks including the public would start understanding. One thing is for sure, everyone would finally start realizing the real truth about how good a reverse mortgage is for our seniors as well as for the economy!

    What do you all think of that my colleagues?

    Have a good day,

    John A. Smaldone

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