Is fact-checking dead?
There was a time when journalists would weigh a story’s veracity by checking with two sources. Sadly, those days are gone. Here’s one example of a column that quotes Ramsey Solutions’ take on reverse mortgages. Hint: it’s not spot-on.
Shannon Hicks
Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
11 Comments
Thank you so much for being an advocate! I feel so passionate about advocating for our seniors. It’s like the world gets meaner and meaner and would exchange a news article – obviously to be self-serving- compared to stopping for one moment in their youthful busy life and realizing how many thousands and thousands of elders, they steering in the wrong direction and potentially making them suffer on earth. Shame on them! But thank you so much, I believe God is smiling at you as we advocate for his senior children.
I love your snarky comments. Get em!!!!!!!!!!!!!
Ramsay Solutions also forgets to factor in home appreciation on the $300k home over 25 years. If the home only appreciates at a 3% rate then that home would be valued at $628,000. The balance may have indeed increased to $435k($260k interest +$175k loan) which means the heirs would not need the non-recourse feature as they would still have $193k in equity in the home. If they get 4% growth (traditional growth is 3-4%) then the home reaches $800k in value so the equity position is $365k. As usual, Ramsey solutions is throwing out personal opinion based on lack of knowledge of the HECM and not actually doing the long term math. As you mentioned, half truths.
Great point!
They also don’t take into consideration that a $175,000 loan on a $300,000 home is going to mean the youngest borrower is most likely 89 or 90 years old. For that loan to be in place for 25 years, the borrower would have to live to be 114 or 115 years old. Another very irresponsible article with missing and misleading information. It needs a correction to be published.
Thanks for your work on this..
You’re most welcome, David. Thank you.
Great rebuttal and insight into misinformation about Reverse Mortgages and getting out the correct information.
Shannon,
Have you ever tried to reach out to Dave Ramsey to see if he is willing to come on your podcast, or have you on his? He is so mis-informed on our product, but has a huge audience, he is actually hurting people with his viewpoint of the HECM loan.
Thanks for all you do for our industry.
Larry Melton
Directors Mortgage
Portland, Oregon
Larry- Thank you, sir. I haven’t reached out to Ramsey Solutions but may do so in the future. I agree, getting an accurate message in front of his audience is key. I don’t mind Ramsey Solutions being opposed to reverse mortgages -that’s a matter of opinion. What matters is not spreading false information which could have been easily avoided with a simple Google search.
Shannon,
The unfortunate truth is that many Financial Advisors are on the same page as Dave Ramsey. Not all but most FP’s & Dave think and act as if they are financial guru’s and that people must follow their advice. While they are knowledgeable in their field, a good share of them cross over into financial fields they know very little or nothing about. If Loan Officers shared their feelings about stocks, bonds, annuities, etc,.. or how to pay off bills and create personal wealth we could be in trouble of losing our NMLS and/or state license(s). How is it that Dave Ramsey and FP’s can tell their personal feelings, which can be completely wrong and false leading, to their clients and have no recourse? Is there any way or some place that we can turn in their false statements into?
Bottom line, Dave Ramsey has a Brand to sell, and in doing so you must follow him, or you are doing things 100% wrong.