HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
NewsReverse Mortgage

Are Broker Dealers Promoting Reverse Mortgages To Clients?

image A new article from Bank Investment Consultant Magazine writer Howard J. Stock covers the changes HERA brings to reverse mortgages and details how some broker dealers are approaching the product. 

According to Higher Loan Limits for Reverse Mortgages, many broker dealers remain wary of reverse mortgages, which Howard writes are regulatory hot potatoes for advisors.  AARP legal policy director David Certner added that it’s not a good idea to invest money borrowed at a cost of around 10% of the total loan unless the circumstances are dire. "To put [reverse mortgage] money into an investment product that also charges fees doesn’t make much sense," he says. 

ING owned Primevest, a broker dealer declined to comment on the new limits and Raymond James said it won’t let any of its clients invest funds raised though reverse mortgages.

But for some retirees who either haven’t saved enough or who have been slammed by recent market turmoil, the new limits may make reverse mortgages a welcome option. But "If I was a financial advisor, I’d look at all other sources before tapping reverse mortgages," Certner says. 

Mr. Certner, good thing you’re not a financial advisor. 

Higher Loan Limits for Reverse Mortgages

Latest Articles

HW+ Member Spotlight: Tom O’Donoghue HW+

This week’s HW+ member spotlight features Tom O’Donoghue, owner at Reverse Loans Now. O’Donoghue has been in mortgage banking for more than 30 years and has been helping and committed to working with Senior Citizens for the last seven years. HW Media: What is your current favorite HW+ article and why? Tom O’Donoghue: How inflation could be a net benefit […]

Aug 12, 2022 By