Agent

Reverse mortgages gain praise

So why would loan officer want to outlaw them?

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Recently I received a nasty e-mail from a bank loan officer that went like this: "How can you recommend a reverse mortgage instead of a home equity line of credit for a senior citizen homeowner? As a loan officer, I am often frustrated by your advice. I run my lines of credit for my clients at almost zero commission to myself. With fees of only about $175, including the appraisal, there isn't much commission room. Reverse mortgages should be outlawed. I will never do that type of mortgage for my clients. Reverse mortgages require mortgage insurance. The commissions I've seen are about four points. I am appalled. Seniors who have equity in their homes should do a cash-out refinance and have a financial adviser manage their money. This is the most cost-effective loan. And they get to keep their house." Purchase Bob Bruss reports online. My reply was: "I suggest you fully study the benefits of reverse mortgages before you close your mind. Refinancing a mortgage and turning the proceeds ov...