Rss

Restrictions Over Discussions On Reverse Mortgage

It is relatively simple to receive reverse mortgage quotes but seniors have to ensure that all questions have been answered to make a confident decision. In the financial services industry, there are restrictions on any discussions involving reverse mortgage quotes. In fact, according to a LinkedIn post, a financial advisor was recently fined by his company’s compliance department because he recommended reverse mortgage to his client.

Zach Alkhamis is a financial adviser of Retirement Wealth Management Group that assists clients in Kalamazoo, Michigan in managing their finances.Alkhamis has purportedly directed a client to local reverse mortgage specialist so that the client can gain information about the financial tool. Alkhamis was cc’d in the specialist’s emails that included a proposal for reverse mortgage. Months later, the email to Alkhamiswas flagged aftera routine inspection.

According to Alkhamis, who is also a fiduciary and Certified Financial Planner, he will continue to discuss reverse mortgage with clients in spite of the $350 fine. He knows that the product can help his clients enjoy a better retirement. However, Alkhamis vows to be very careful in leaving a paper trail because a second citation can end his relationship with the broker-dealer group.

The story of Alkhmais has ignited a series of discussions among industry professionals, many of whom have shared their experiences on compliance shutdown. They have expressed their frustrations over the widespread institutional roadblocks in the financial planning community.

According to Shelley Giordano of Funding Longevity Task Force, discussions on housing wealth in retirement planning are forbidden. Instead of formulating policies and procedures so that clients can use their housing wealth prudently, compliance officers want a total blackout on reverse mortgage discussions. Financial planning companies are worried that their employees are not trained and knowledgeable on reverse mortgage to allow them to engage in serious discussions.

Reverse mortgage in its simplest definition is a financial tool that allows seniors to access their home equity and convert it to cash. The senior retains ownership of the home as long as they continue to pay for insurance and taxes. You can receive reverse mortgage quotes today and know how much money you quality for.