Expand Your Education with These Courses from
A Consumer Advocate Approach to Real Estate: Course 1.
Becoming a Successful Sales Professional: Skills for Sales Success: Part One.
ACE: Purchase Reverse Mortgage Course.
BPOs: The Agent's Role in the Valuation Process.
Bundle 3: CIPS Institute (US Version).

Breaking the Logjam on Reverse Mortgages

Have a comment on this article? Share on Facebook!

By Jack Guttentag

We will make the calculator available free of charge to any HECM lender to place on their website. The only proviso is that the lender also posts its prices with us so that borrowers can compare the prices with those of other lenders.

Many seniors will be frustrated by even the most user-friendly calculator that is possible to design. They need personalized guidance on their HECM options and whether or not they want to proceed, which is best provided by someone who is not trying to sell them a HECM.

Under current law, before executing a HECM contract, a senior must be counseled by an independent party unconnected to the lender. While seniors can seek such counsel before contacting a lender, in practice they almost always contact a lender first and the lender provides them with a list of counselors. In good part, this defeats the purpose of the rule.

A major reason why borrowers don’t get counseled before they see a lender is that counselors don’t provide guidance on specific HECM options, HUD rules discourage it, and in any case counselors don’t have the tools to assess specific options. To find out how much they can draw, which is the first question seniors generally ask, they go to a lender.

Beginning Feb. 3, any senior with an interest in whether an HECM will meet their needs can obtain free guidance from me, one of my colleagues, or from a mortgage broker working pro bono to help a senior from a state in which the broker is not licensed. Seniors can register for an appointment on my website.

Jack Guttentag is professor emeritus of finance at the Wharton School of the University of Pennsylvania.

Distributed by MCT Information Services

Continue Reading 1 2

Have a comment on this article? Share on Facebook!

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2016 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>