Insight into Reverse Mtg. deals, please

[JSmith43]

Nice google search, Elliot. I'd say you are two for two. After 20 seconds on each site, less time than it took to navigate there, I found:

The first lawyer site is pathetic & sparse. They compared negatives and positives, allegedly. They mentioned as a negative that you can't deduct interest on a RM.

Did they mention that the RM recipient gets their money out tax free as a positive? No. Let me see, no tax deduction vs tax free income. Duh.

They probably didn't mention that it is typical that the standard RM recipient has so little taxable income that the chances of benefiting from an itemized deduction vs opting for the standard deduction is somewhere around slim to none for the typical case. Verdict: Junk site.

Moving on to the second article. The CNN advisor throws this out within the first few paragraphs: You should also know that the interest rate and the fees you pay can vary enormously depending on which reverse mortgage lender you go to, as can the size of the payment you receive.

For HECM's that is 100% couldn't be more wrong, since the rates are totally uniform via FHA mandate. About the only thing you can squabble over is the size of the origination fee, the one thing he didn't mention.

There are custom RM products out there and that must have been his universe, the 10 or so percent of RMs out there that are non-HECM
Those people can perhaps afford to pay a financial planner to give them good or bad advice. I'm sure the chances of good advice is better than 50/50, but there is no shortage of BS financial planners out there.

Verdict: Beneath CNN standards. But, I'm going to go back and read the full article. I can't believe they let him publish this with explaining HECMs are the main product out there by a long shot & none of his conditions (in red) applied.:Eyecrazy:

I'm back. At least the CNN guy seemed to mean well. At the end of the article he linked the AARP site and briefly mentioned HECMs, He just doesn't have a clue that HECM's are 90% of the universe except for high cost areas where FHA loan limits vs homes don't cut it. BTW, the temporary FHA loan limits increase does not apply to HECMs. Their "modernization" legislation is stuck in the Senate, I think.

 

[c w d]

Where are these orders coming from? Direct from lender, or through an AMC or MB.

We did some reverse mortgage work about a decade ago, direct from the lender. We never had any value issues with this type of work; absolutely pressure free.

Dave, a decade ago? Are you sure you weren't pressured and just didn't realize it from the lack of business. We've noticed a continued drop in our clientèle. Some don't pressure us. They just quit using us when we can't make value. Reverse mortgages are all the rage today.

 

[Pamela Crowley (Florida)]

I thank those that have brought this thread back on topic, which is Reverse Mortgages.

For those that took it off topic, I will ban, from at least this thread, the next one that posts something here that could even remotely be considered bashing of another forum member.

Carry on...

 

[Alison Swain]

Both were intimidated by their sons not to do it. Most younger people do not know how life is when you are alone and in your 70s, 80s and beyond. You want to live for the moment as that NEXT moment might find you laying on the floor all night gasping for that last breath.

Good GAWD! Now I'm depressed!

 

[The Warrior Monk]

Dave, a decade ago? Are you sure you weren't pressured and just didn't realize it from the lack of business. We've noticed a continued drop in our clientèle. Some don't pressure us. They just quit using us when we can't make value. Reverse mortgages are all the rage today.

We were not pressured in any way, shape, or form. In fact, this client actually put aside certain mandatory requirements (such as credit checks on the appraisers, which we refused to submit to) in order to use our firm.

I just did some quick research...that company was bought out in 1999, which is about the time the work stopped.

Clients come an clients go; it's the nature of the business. It's the reason one should diversify as much as possible.

 

[Tudor]

I think these are ideal products for people with no heirs. At least the person that saved/earned that equity can enjoy it.

 

[Mike Boyd]

Good GAWD! Now I'm depressed!

YOU'RE depressed? How do you think these older people feel? I live in a senior complex and am around them daily. Most live right on the edge. Most are women whose income was reduced significantly when their husbands died.

 

[Elliott]

Pammie said, I will ban, from at least this thread, the next one that posts something here that could even remotely be considered bashing...

Pammy, I heard them fighting last night and wanted them to stop, and I thought
Timmy would take care of it, but he was hanging out in that bad Z room eating
popcorn and drinking beer.....

http://appraisersforum.com/showpost.php?p=1617306&postcount=1883

Then they woke up grandpa and he kick everyone out.

 

[Pamela Crowley (Florida)]

Elliott is trying to get banned from this thread... and I'd have to ban myself for laughing with him. :laugh:

 

[RSW]

This is better than watching re-runs on TV!