Reverse Mortgage information for CPA's and Financial Planners

Here at Signet Mortgage we started our morning early at Round Hill Country Club in Alamo hosting a breakfast presentation for Financial Planners and CPA's on Reverse Mortgages.  

I wanted to quickly touch on a couple hot topics and questions that came up this morning. I'm always surprised by the variety of questions each audience brings.

HECM Saver – a reverse mortgage option that does not have the expense of the full mortgage insurance – addressing the most common concern about the cost of a reverse mortgage.  A senior would have access to a bit less funds but with costs in line with a traditional mortgage.  Perfect for the senior with a low existing loan or using the reverse mortgage as a 5-8 year strategy.

Long Term Care and a Reverse Mortgage – in certain situations a reverse mortgage can solve the issue of “how do I pay for Long Term Care” … with the proper advice and consideration a client may be able to arrange Long Term Care or purchase Long Term Care Insurance using the equity in their home. 

If either of these thoughts generate interest … be sure to contact me and I will make sure you are included in the next seminar. 

Always, a reverse mortgage is not for everyone, but perfect for others.  Either way, it should be a consideration for any financial plan.  Properly used, it can be a significant benefit to a Senior … even to purchase a home!  If you’d like to learn more you can visit our website www.SignetReverse.com.

Let me know your thoughts …

Why Banks are Exiting the Reverse Mortgage Market...

Consumers are likely to be confused with the recent exits from the reverse
mortgage market by Financial Freedom, Bank of America, Wells Fargo(wholesale) and
Seattle Mortgage. Happening all at once, the public might perceive
something negative is going on with the industry. The reasons are quite
different with one overriding factor - increased competition.

Financial Freedom parent One West never had their heart into the reverse mortgage
business. Bank of America has other problems and it was an opportunity to
shift an entire unit to deal with processing foreclosures.

The most significant factor, I believe, is increased competition from
independent retail loan originators supported by more wholesale options.
The pricing for reverse mortgages has come down considerably - all positive
for the senior. The introduction of the HECM Saver program and recent
limitations on loan originator compensation has leveled the field quite a
bit.

The differentiation of a trusted advisor is now is back to education,
quality advice and solid ethics - attributes large organizations have
trouble executing. As originators, we have an opportunity to educate our
clients and let the know - reverse mortgage options are here to stay!

For more on this shift, check out THIS article.

Points of Life

Points of Life is a collaborative group of professionals and specialists committed to helping serve the needs of an Aging Society. It's a great resource for those looking to prepare themselves, or their loved ones, for whatever the future holds. Check out their website for more information-

http://www.pointsoflife.org/

Signet Mortgage is a member of the Points of Life panel of professionals. The following clip is from a presentation March 30th in San Ramon where I was asked a couple questions about Reverse Mortgages. Check it out. (the video will automatically cue to the right spot--it's less than 2 minutes- not 12!)