Happy Friday, glad you made it here. Labor Day made for a short, but nevertheless busy week for reverse mortgage news. And while only a few hours stand between you and yet another weekend, before you take off, check out the top stories grabbing the attention of RMD readers this week:
Reverse Mortgage Volume Jumps 24% in August, But Hold the Applause—Home Equity Conversion Mortgage (HECM) endorsements saw a big jump in August—a welcoming increase after what has admittedly been a dismal summer for industry volume. But hold the applause, because market data indicates the 24% monthly growth is unlikely sustainable heading into the remainder of 2016.
Retirement Experts Discuss New Case for ‘Low Cost’ Reverse Mortgages—The perceived high costs of reverse mortgages can deter otherwise eligible borrowers from tapping into their home equity for retirement purposes. But financial experts this week suggested that if these products came equipped with substantially lower setup costs, a new case could be made for reverse mortgages in retirement planning.
Retirement Experts Clash on Financial Planning Merits of Reverse Mortgages—Reverse mortgages have gained considerable attention in recent years for their strategic use in retirement planning. But while financial planners, academics and other professionals have recognized the newfangled use of home equity as part of a coordinated retirement income strategy, one of the largest organizations representing retired Americans isn’t entirely convinced.
Seeking Alpha: H4P is Critical Alternative for Home Buying Retirees—A new home can be an expensive purchase, especially for retirees with limited liquid resources to fund this type of transaction. While most buyers generally have two options when it comes to buying a new home, a reverse mortgage can provide a critical third option for retirees, according to an article published by Seeking Alpha this week.
Tom Selleck Chats Reverse Mortgages as ‘Home Equity Chair’ in New AAG TV Spot—The traditional “three-legged retirement stool” of Social Security, personal savings and pensions has become wobbly over time, forcing retirees to consider alternative strategies to support their retirement. This means taking a serious look at reverse mortgages and the strategic use of home equity, suggests Tom Selleck in the latest TV commercial aired by American Advisors Group this week.
Written by Jason Oliva