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Gratitude: Why it is important and what it unlocks in our lives
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2 Comments
Hi Shannon,
Happy Thanksgiving and Happy Holidays to you and your family. I am very optimistic about the HECM product and its future, and part of the reason I feel this way is because of your insight and productive videos. We all must stand strong and realize the very valuable service that we provide yo our mature population. Please keep fighting the good fight, Shannon.
Although I do not find Shannon disingenuous, I do find our industry’s findings that the financial community now sees the HECM as a better product today somewhat delusional.
There is at least two major financial planning gurus who have been cooler to promoting HECMs in the last two years than in the year before. One such person is Michael Kitces. He supported our industry’s Saver but has been fairly silent when it comes to the 2014 HECM (as HUD refers to it). With its 0.5% and 2.5% upfront MIP cost structure, it is definitely less attractive than the Saver with its 0.01% upfront MIP cost.
Although less than enthusiastic at first about the 2014 HECM, John Salter seems more pragmatic and remains a strong supporter of the industry. It does not seem, however, that the product is in most ways better than in the past as to its aspects as a cash flow management tool of the borrower, guided by the advice of a CFP.
We cannot go backwards but it seems a little delusional to continue stretching the acceptance of the latest revision of the HECM as anything more than it is still the best cash flow management tool during retirement out there despite its less attractive features.
Let us be grateful for what we know to be true.
Tens of thousands of seniors were helped by HECMs last year. Even more than the year before. Let us hope that trend continues.
Also HUD has shown us their financial support for the program in the last six years which has resulted in a stronger final balance in the MMI Fund. Many of us believe there will be less scrutiny in Congress of the HECM program this fiscal year as a result.
We should also be happier that we can point to our product as one that people now qualify for. No longer is it easy for a person who is most likely to default on payments of property taxes and insurance to obtain a HECM.