in response to Emil... Your posted article is very good and as been seen by many. Many of the Reverse Mortgage Specialists that have been in this business for a long time have been trained and certified in the reverse mortgage industry extensively.
A few words of advice when looking for Reverse Mortgage Companys:
Choose a company with a long-standing reputation in the business, such as:
Bank of America
Bank of NY
Financial Freedom Senior Funding
Seattle Mortgage
They are major players.
When using a company that is a Correspondent, ask them who many years the Rep has been in the business. This is a good indication of whether or not they know the HUD regulations well. Check on how long the company (or broker) has been in business.
Ask your Rep what kinds of Certifications they hold (i.e. Cerfitifed Senior Advisor, Natl Assoc of Financial Planners, Estate Planning w/ knowledge of Reverse Mortgage, etc.)
Make sure they go over every page w/ you while you are signing. Have someone in your family or a friend w/ you. Two brains are better than one.
LASTLY,
It is "not" recommended that you take your awarded funds in the credit line and use it to purchase any kind of an annuity or insurance. It is against HUD regulations to suggest that to any borrower.
"The remaining $100,000 was used to purchase, at the saleswoman’s urging, two deferred annuities — complex contracts that offer monthly income in exchange for a large lump-sum payment..."
We recommend that "if you do not need the money right away ... don't take it out! Let it grow for you." Every year, additional money is added to the credit line in December. Sometimes, that's enough to pay your taxes and have a nice Christmas and you are not touching the principal.
Not every RMS is out to SCAM you! The best are trained to Counsel, Counsel, Counsel. If someone is trying to "sell" you a reverse mortgage ... back off of them!!
I hail from Financial Freedom Senior Funding Corporation where I was trained extensively ... and I do mean "extensively". I love working w/ senior citizens, orgainzed and became President of the Business Network League (a senior organization to help the elderly w/ their issues) and worked on the Bethany Presbyterian Church Community Team working to provide better Housing Counseling for the Community.
My Advice: Get Counseld on the program. Learn all about it from a qualified RMS and then make your decision. Also, don't wait until it's too late. Approximately 30% of all reverse mortgages do not qualify for different reasons and are turned down.
Jacquelyn E. Nixon, RMS, CSA
(866) 638-3307
