Reverse Mortgages Get Better, Line of Credit ‘Best Bet’ for Retirement

ReverseFocusReverse Focus Weekly Podcast Episode #381

In this week’s Reverse Focus podcast, Shannon Hicks discusses a recent column from the Chicago Tribune that says reverse mortgages, as a result of new rules and program changes, are becoming a better options for seniors. In its argument, the column also spotlighted the new book from reverse industry veteran Shelley Giordano, “What’s the Deal with Reverse Mortgages?”

Also discussed, the effect of the Financial Assessment continues to ripple, and now it is being felt when it comes to Home Equity Conversion Mortgage-backed securities. While HECM secures were well-above their year-ago level in August, however, the month’s tally was dragged down by the recent changes to the HECM program, according to a recent commentary from New View Advisors on publicly-available Ginnie Mae issuance data.  

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In another podcast story, the reverse mortgage line of credit option is the product’s “best bet” at becoming a serious retirement planning tool and dispelling the “loan of last resort” perception. A standby reverse mortgage line of credit can offer peace of mind knowing they will have funds that grow over time, which they can access for a number of reasons, according to Dr. David Johnson, associate professor of finance at Maryville University in St. Louis.

Lastly, planning for retirement is cited as the biggest financial concern in most U.S. states, according to a recent survey from GoBankingRates. Retirement planning was the biggest worry in 26 states among adult Americans—more so than any other financial concern.

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Talking Points:

  • Chicago Tribune: Reverse mortgages becoming a better option
  • Financial Assessment lowers HECM securities issuance
  • Line of Credit is the best bet for retirement
  • Planning for retirement is biggest worry in most states

Listen now. Reverse Focus is the ultimate resource for reverse mortgage professionals providing the technology, training and marketing to grow your business. We are your one-stop resource for those committed to taking their business to the next level.”  Editor’s Note: These posts are sponsored by Reverse Focus.

Written by Jason Oliva