Friday Round-Up: Counseling Debunks Common Reverse Mortgage Myths

Congratulations on making it to another Friday. The weekend is in sight, but until then, in case you missed it, here’s what happened in reverse mortgage news this week:

The Truth About Reverse Mortgages and Heir Legacy—A prevalent myth about reverse mortgages is they drain home equity, leaving little to nothing left for heirs upon the death of the borrower. This misconception, which may ultimately deter some eligible borrowers from participating in the Home Equity Conversion Mortgage (HECM) program, requires some myth-busting to set the record straight.

Most Common Reverse Mortgage Myths Debunked During HECM Counseling—Like originators, the job of a HECM counselor is also rooted in education as they help prospective borrowers more clearly understand the inner workings of reverse mortgages. Despite this dual effort on the educational front, several reverse mortgage illusions have yet to evaporate into the ether.

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Rising Home Equity Leaves Seniors Ripe for Financial Abuse—For many U.S. seniors, home equity commands the lion’s share of their net worth. But as this valuable stockpile of wealth continues to accumulate with little signs of slowing down anytime soon, so is the risk of seniors falling victim to financial exploitation—and regulators are taking notice.

Reverse Mortgages and the Holy Grail of Retirement Planning—Retirees face many challenges in retirement, but perhaps none is greater than the risk of outliving their savings. As research in recent years has shown, reverse mortgages can be the holy grail for some retirees’ financial plans, according to a recent article published in Forbes this past week.

Cognitive Aging in Seniors May Hinder Reverse Mortgage Use—As people age and their cognitive ability to make important decisions fades over time, this could have a material effect on their personal finances later in life, with implications for potential reverse mortgage utilization, according to a new report on the cognition and housing behaviors of older adults from the Mortgage Bankers Association’s Research Institute for Housing America.

Written by Jason Oliva

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