It is interesting to note that while education is mandatory in the reverse mortgage process, ethics seem to be treated as optional and open for interpretation according to each lender. Unfortunately, we find that mentality prevalent among many of the company cultures within the financial services industry. Legacy Reverse Mortgage believes that our clients deserve an extra degree of protection, so many years ago we joined the National Reverse Mortgage Lenders Association (NRMLA), an organization which defines the ethical standards for the industry. The NRMLA also supports education efforts, and they recently redesigned their web site at www.ReverseMortgage.org to make it even more valuable to consumers. The site includes a road map to the process, and the first three of the ten step proce...

Fifteen years ago, the typical reverse mortgage applicant was a 75 year old woman, perhaps recently widowed. Probably facing limited financial options, she would finally turn to her home equity to fund her retirement, limiting her financial concerns. But that quintessential customer may be getting replaced. According to Peter Bell, president of the National Reverse Mortgage Lenders Association, the typical reverse mortgage applicant is closer to 62 or 63 years old and about half are married couples. Why such a dramatic shift in the average ages of reverse mortgage borrowers? This shift in reverse mortgage demographics most likely indicates that senior citizens are taking retirement planning more seriously and want to leverage all available options. Retirees are faced with a number of f...