Seeing how reverse mortgages are my profession, I follow reverse mortgage news on a daily basis. Some articles I see are good and some are not. Below are a few recent ones that I thought you would want to be aware of.
Reverse Mortgages and Taxes
January 3, 2019
This is a good article that doesn’t add a personal bias one way or the other. It simply addresses questions that people have about how a reverse mortgage could impact your tax situation. I would recommend reading this if you have questions about this topic.
Two New Jersey men arraigned in $1.6 million reverse mortgage scam
March 19, 2019
One of my pet peeves is when people say that reverse mortgages are scams. Or more directly, use the term “reverse mortgage scams”. A reverse mortgage is not a scam! It is financial tool, rand just like any other financial tool, it can be used for good or bad.
In this article, the author, Jessica Guerin, talks about how two men ripped off older homeowners and banks to steal money by working with a real estate appraiser to inflate values. They then directed funds from the reverse mortgages into bank account that they controlled.
This article is about bad people who used a good product in the wrong way and should be put in jail.
A Reputational Report On The Reverse Mortgage Industry
April 1, 2018
Chris Colw is what I call the “beat reporter” for the reverse mortgage industry. A number of his articles are published in the “Reverse Mortgage Daily” blog.
In this article, Chris interviews Jaimie Hopkins, who is a financial planner and Director of Retirement Research at Carson Group. Jaimie understands the reverse mortgage industry and has written a number of article himself about reverse mortgages and financial planning.
Chris also interviews Dan Hultquist who is the author of a book titled “Understanding Reverse” and VP of Organizational Development at Finance of America Reverse. Dan is one of the smartest people in the industry and understands reverse mortgages better than anyone I’ve ever met.
This article paints a picture of how the reverse mortgage industry has made progress in educating consumers and advisors, but there is still a lot of work to be done.
8 Things To Know About A Reverse Mortgage
April 8, 2019
Unfortunately this was a very good example of someone talking about reverse mortgages who really doesn’t understand what he’s talking about.
The author, Linda Bell, references a 4 year old “study” by the Consumer Financial Protection Bureau (CFPB), that did a focus group of 59 homeowners reviewing TV advertisements and that a lot of them didn’t understand what a reverse mortgage is. The reason for the ad was to get people to contact the sponsor for more information. The CFPB feels the advertiser should try to explain every detail in the 30-60 seconds they are on the air.
She also only interviews one person, Mike Sullivan, personal finance consultant at Take Charge America, who does not understand how reverse mortgages work. He is quoted extensively in this article. There are a number of errors throughout the article and I would not recommend anyone read this one.
The ironic thing is the name of the article is “8 Things To Know About A Reverse Mortgage”, but if you don’t know much about them, reading this article will not help.
Read the full article here at your own discretion.