EPISODE #859
Baby boomers to pass on $17T in equity.
[Newsweek]
Baby boomers are holding onto an incredible amount of housing wealth. Recent data reveals boomers intend to pass on an estimated $17 trillion in home equity to their heirs.
Other Stories:
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[MSN] A daughter refuses to help her mother with a reverse mortgage to cover property charges- Now her family resents her.
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[Housing Wire] Reverse Mortgages make a splash at the MBA’s annual conference.
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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.
1 Comment
As to Dave Ramsey, his braodcast backups are extraordinarly poor representatives of financial advisers generally. As to what are the facts and circumstances surrounding this request for support from a sibling is not stated. For example, is the mother living in a 50,000 square foot home (with $3,000,000 in home equity) with her other resources going to pay an unnecessary around the clock nursing corp? Does the home lack so much equity (after selling expenses) that selling the home and taking out a new HECM would permit little more than a 90 square foot home? What is the mother’s exact financial situation and her home like?
Dave Ramsey is Dave Ramsey. Those who think anyone in our industry or anyone related to it can change Dave’s mind about reverse mortgages do not understand Dave or his billion dollar business image issues. Even the vast majority of his followers are generally a lost cause when debating them on Dave’s well established and publisized views on reverse mormortgages.
The Ramsey “kids” are so poorly trained, that upon hearing that the financing vehicle is a reverse mortgage, they immediately go into their song and dance about not supporting parents who have one. Was that the case here? The broadcast seemed to imply that they did little research into the situation. This should give ample ammo to those in the industry who need to tear down the Ramsey position on reverse mortgages other than the Dave Ramsey “true believers.”
Other than generalities, I have yet to hear why reverse mortgages, particularly HECMs, fail to do what they were intended to do. No, I do not mean “age in place,” an allusive idea with no agreed upon definition and no concrete link to HECMs or HECM insurance through lawmakers at the time of creating HECM insurance or even Ronald Reagan at or before he signed the HECM legislation into law.In a rare instance, lawmakers stated in the law their purpose in creating HECM insurance which is found in federal law at 12USC1715z-20(a) and guess what? Nowhere in that purpose paragraph is the thought of aging in place mentioned. Even the legislative managers fail to mention it. Yet people have the right to say it is implied but there is NO verified and direct proof that was in the minds of the majority of those who created and passed the law or in the mind of the President when he signed the passed legislation into law. The source seems to be what someone claimed President Reagan said at the signing of the law or just before or just after signing it. As the Wendy’s commercial used to say: “Where’s the beef.”