Involuntary Retirement

reverse mortgage news



Older workers face ‘involuntary retirement’.
Are we reaching these homeowners?

  • In January 2020 the unemployment rate for those 55 and older was 2.6% [MarketWatch]
  • By April 2020 the unemployment rate spiked to 13.6% for those 55 and older [MarketWatch]
  • After the last recession (2008) those between the ages of 51-60 waited for an average of 9 months before finding new employment while those 25-34 were working within 6 months. [Urban Institute]

Many older Americans are still working, or at least recently were. Either way, they must meet their daily living expenses. This demographic while not completely forgotten is rarely mentioned. Even on this show I typically say a reverse mortgage may help those in their non-working years or retirees. However, a recent column caught my attention.

“Dear Liz”, writes one reader to LA Times columnist Liz Weston, “I read with interest the letter from the person who was a tour guide and lost their job due to the virus. I kept reading, expecting you to suggest a reverse mortgage. Are these a bad idea?”.  Weston replies, “not necessarily” and then goes on to explain if there’s sufficient equity in the home a reverse mortgage could pay off the existing mortgage and “might be worth the effort”. In May MarketWatch noted Americans 55 and older have been clobbered by the coronavirus’ economic fallout…

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1 comment

The Positive Realist August 17, 2020 at 1:57 am

While this is not necessarily news to many of us, it is the turning of that knowledge into creative target marketing ideas where Shannon stands out. Reverse mortgage proceeds cannot replace income but can replace lost monthly cash inflow from such sources as a lost job. Reverse mortgage proceeds are a source of cash inflow that does not create required monthly cash outflow; few other sources of cash inflow can do that.

Yet getting that message to those who need to hear it at the times when they are ready and willing to accept it is the problem we must solve. Our low production levels show how inadequate industry marketing is. Yet it seems when the kind of help that someone like Shannon provides is crucial to the industry, that is when the purse strings of industry coffers tighten. The industry needs more ideas about honing our message to the needs of our customer base, not a choking off of the few industry voices who regularly and consistently provide ideas on how to make us more productive. What Shannon provides is not easily quantifiable but it is nonetheless real.

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