Reverse Mortgages Remains A Hot Topic of Debate in Mainstream Media
Reverse mortgages have been a touchy subject for quite sometime with opponents and proponents finding ways to support their arguments. The topic has now spilled over into mainstream media, as they discuss what red flags need to be raised following the major changes to the program on October 2, 2017.
CNBC has joined the conversation, according to a recent Reverse Mortgage Daily report. The report reveals that CNBC does support the Home Equity Conversion Mortgage model, though, only when it applies to retirement.
“One intuitive method is coordinating draws from investment portfolios and reverse mortgages,” longtime HECM proponent Tom Davison told CNBC, according to the report.
“Particularly in the first seven to 10 years of living on a portfolio, avoiding drawing from it in down years can be a big boost to sustaining the portfolio through the rest of your life.”
Credit growth is one of the major issues as it will be dramatically slowed given the new changes.
For more on the reverse mortgage debate, click on the image above.