In observance of New Year’s Day, RMD will not be posting on January 1, 2016, but will return to our normal posting schedule on Monday, January 4, 2016. RMD would like to wish all of its readers safe and enjoyable New Year’s celebrations. Bring on 2016!
In the meantime, in case you missed it, here’s what happened in reverse mortgage news this week:
Reverse Mortgage Heirs Are ‘Dead Wrong’ About Their Inheritance—Adult children often get skittish when their parents are taking out a reverse mortgage, mainly concerned that doing so will fritter away their inheritance. Those concerns, however, are largely unfounded, especially if the reverse mortgage is used strategically and the proper estate management is in place following the borrower’s death, says one tax lawyer and reverse mortgage researcher.
Home Price Growth Continues Firing on All Cylinders in 2015—Home prices continued their widespread growth nationwide over the past year with big gains in October, according to the latest results from the S&P/Case-Shiller. Year-over-year, home prices reported a 5.2% annual increase in October 2015 compared to a 4.9% gain in September, according to the S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions.
Illinois’ New Reverse Mortgage Law Takes Effect This Week—Reverse mortgage professionals in Illinois will soon be required to abide by the state’s new laws governing Home Equity Conversion Mortgages (HECMs) beginning January 1, 2016. Dubbed the “Reverse Mortgage Act,” the new laws create a series of protections for borrowers, including the implementation of a three-day “cooling off” period.
USA Today: Using a Reverse Mortgage to Protect Other Investments—The reverse mortgage line of credit continues to gain acknowledgment from the mainstream press for its ability to help retirees protect their other investments such as IRAs. In a recent column, USA Today personal finance and retirement contributor Robert Powell fielded a question from one reader who said she and her husband are considering converting their traditional IRA to a Roth IRA. The couple said they are also considering getting a reverse mortgage.
Baby Boomers Need a Reverse Mortgage Reality Check in Retirement—When it comes to retirement, Baby Boomers are vastly unprepared, and not just financially as many have expectations that are in need of a reality check, suggests a recent survey comparing the retirement outlook of workers age 50 and older with the actual experiences of current retirees. And in some circumstances, reverse mortgages may help Boomers bridge the gap to make their retirement expectations a reality.
Written by Jason Oliva