HECM Advisors Group - Summary: Government's Redesign of Reverse Mortgage Program - Boston Center for Retirement Research

In October of 2013, The Reverse Mortgage Stabilization Act was passed. And with it, the first significant reform of the program since its inception in February of 1988.

These NEW changes are designed to protect the program and positively impact a retiree’s ability to access the equity in their own homes to enjoy a quality retirement.

The programs original intent was to use the Housing Asset in a Conservative and Coordinated way to attain the best possible retirement possible. Over the last 26 years, some of that original intent was lost. Thankfully, we have recovered the programs origin.

One significant change is not just in the program itself, but really the increasing role of the Advisor in the HECM process. Since 2011, significant research has been revealed that the Reverse Mortgage should NOT be used as a product of Last Resort for the majority of retirees, and in fact that using it that was is a very poor strategy. But that an Early, Coordinated, Conservative use of housing wealth places the client in a much better strategic position to enjoy a sustainable retirement.

It’s counter-intuitive, but it is true.

Here’s the article for the Boston Center for Retirement Research

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Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®

President and Chief Conversation Starter at HECM Advisors Group/Institute

Don Graves, RICP® is a Retirement Income Certified Professional and one of the Nation’s Leading Educators on the Emerging Role of Reverse Mortgages in Retirement Income Planning. He is president and founder of the HECM Institute for Housing Wealth Studies and an adjunct professor of Retirement Income at The American College of Financial Services. He has helped tens of thousands of Advisors as well as more than 3,000 personal clients since the year 2000