Reverse Mortgages Need to be Viewed with More Objectivity
Reverse mortgages and annuities share some key similarities:
- Both financial vehicles have the potential to provide stable sources of income to retirees.
- Reverse mortgages and annuities both suffer from relentlessley negative coverage in popular financial media.
- As a result, reverse mortgages and annuities are largely misunderstood.
Objective information and commentary are hard to come by.
Even public officials who have responsibility for issues related to reverse mortgages struggle with the skewed information. For example, Brian Montgomery who is the assistant secretary of housing for the U.S. Department of Housing and Urban Development had this to say in response to reverse mortgage-related comments made by the comptroller of the currency"
“Your comments may have created unnecessary mistrust and confusion about a product that has a very successful track record of giving thousands of seniors the opportunity to use the equity in their homes to maintain an independent lifestyle. I worry that your comments could dissuade many who could truly benefit from a reverse mortgage from using the program and benefiting from the financial independence it provides.”
Source: The Spokesman-Review
