Is 2016 the Year for Reverse Mortgages?

January 18th, 2016 by

Creating an on-going source of solid reverse mortgage leads is not the challenge. It’s a factor of the most recent regulations, public opinion and current events.While this particular blog was written in 2016, which was a good year for the reverse mortgage business, 2018-2019 looks even better.

Using a reverse mortgage is no longer just for the cash poor and house rich,” said Jamie Hopkins, an associate professor of taxation at The American College in Bryn Mawr, Pa., in a Forbes article earlier this year. “Instead, reverse mortgages can be used strategically as one part of a retirement income plan designed to build a buffer against sequence of returns risk early in retirement, help defer Social Security benefits or reduce cash outflow from traditional mortgage payments”.

According to Jason Oliva from Reverse Mortgage Daily, the reverse mortgage industry turned a critical corner in 2015. Changes to the Home Equity Conversion Mortgage (HECM) program, like the new Financial Assessment as well as updates to the non-borrowing spouse policy, ushered in a new era for the reverse mortgage product.  These changes have excited researchers and financial planners and have been generating positive press in the mainstream media.

In an extra boost of confidence for the industry, the economic value of the HECM program grew $7.9 billion in Fiscal Year 2015—progress that was applauded by the Department of Housing and Urban Development

This is all great news for the Reverse Mortgage Industry. With this huge victory for the HECM program, along with the most recent program changes that took place last year, the Reverse Mortgage Industry is poised for success.

There was a great article written by personal finance and real estate columnist Ilyce Glink in CBS News Money Watch.  The truth is that reverse mortgages can actually be a helpful financial planning tool for retirees, says the article, which highlights 10 important need-to-know facts that every consumer should consider when it comes to reverse mortgages.

Mortgage Professionals: Make sure you get quality reverse mortgage leads and prospect lists. Your marketing materials need to educate consumers and insure that they understand the benefits of a reverse mortgage program. There are literally tens of thousands of quality prospects in the marketplace who could benefit from a Reverse Mortgage.  You might also want to work with a team of financial advisors who advocate the use of a reverse mortgage as part of a comprehensive retirement strategy.

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