Congrats on making it to another Friday. The weekend is in sight, but before you go, here’s what happened in reverse mortgage news this week.
Selling Home Builders on Reverse Mortgages, One H4P at a Time —A loan officer with 26 years of experience in the reverse mortgage industry shares how he has an estimated 90% of his reverse mortgage business transactions in HECM for Purchase’s (H4P). The loan officer works to involve new home construction in most of the deals he makes and partners with builders who specialize in communities for buyers age 55 and older.
Here’s How Baby Boomers Will Reshape America’s Housing Market — The 55+ age group in America controls almost two-thirds of the nations home equity, which is about $8 trillion. On top of this, older Americans are feeling pretty good about their retirement years and more than half of them would like to age in place, if they had any control over it, a recent Freddie Mac 55+ survey found.
Investment News: 9 ‘Surprising’ Ways to Use Reverse Mortgages —There are numerous ways to use reverse mortgages, such as funding health care needs in retirement or purchasing a new home. It may be beneficial to financial advisors to give the reverse mortgage product a second look, because it can drastically help some people’s retirement plans, according to an article published this week by Investment News.
NY Times: Small Banks Bring Main Street Respectability to Reverse Mortgages — Even the small, local banks are taking advantage of the shifts in the reverse mortgage product. Two community banks in the Pittsburgh area have been originating reverse mortgages for years, but they are doing one thing differently than some larger commercial banks to shift the focus from commission-based incentives to building meaningful relationships with clients.
MarketWatch: Is the Tide Turning for Reverse Mortgages? — It’s no surprise that the media is painting the reverse mortgage product in a much better light than in previous years, though it is mainly due to the newer program changes that were put into place over the last few years. The financial planning community is also noticing these changes and is now producing research and articles on how the product can be used as a retirement planning strategy.
Written by Alana Stramowski