In this installment of our HECM series, we review three strategies that should entice advisors: the HECM-for-purchase, the HECM-LOC for liquidity in down markets, and the HECM-LOC created at age 62 but tapped only if all other sources of cash are exhausted.
A kosher reverse mortgage lender will share what he or she earns when selling the loan by waiving or reducing the borrower's costs, says Wharton emeritus professor Jack Guttentag, aka "the Mortgage Professor." But not all HECM lenders keep kosher.
'The unexpected change regarding FIAs in the final DOL rule and the related Best Interest Contract Exemption has cast a cloud over our future growth rate,' said John Matovina, CEO of American Equity, the second-largest seller of fixed indexed annuities in 2015.
“There’s still a dark cloud over HECMs,” said Michael Banner, a long-time advocate of reverse mortgages who has a CE-accredited business devoted to teaching financial advisors about HECMs.
In a new research paper, a group of Big Ten economists and an IRS analyst say that wealthy people and older people are the most likely to sell in scary market downdrafts.
In 2015, Athene USA was the fifth biggest seller of indexed annuities in the US, with $2.55 billion in sales and a 4.8% market share. It trailed Allianz Life, American Equity, Great American, and AIG.
In the US, 28% of those surveyed said they don’t think they will use robo advice tools in the future, compared with only 12% in the UK.
Wealth management firms, brokers, exchanges, trading software providers and fintech start-ups can use the service, which can monitor price data on stocks, futures, options, forex, mutual funds, ETFs and indexes.