Retirees need to face their Financial Fears

by Shannon Hicks
| 2 Comments
| December 13, 2021

<h2 class="p1">Without audience targeting are Google Ads Dead? Think again…</h2> Early this month Google announced new restrictions for targeting specific audiences. The restrictions apply to content related to housing, employment, credit, and those who are disproportionately affected by societal biases. The news of these restrictions created quite a stir among industry brokers and lenders who heavily rely upon targeted Google ad campaigns. All which may have you asking if these changes will kill future reverse mortgage advertising on the world’s most popular search engine. In just a moment we’ll hear from our online SEO expert Josh Johnson to find out. <a onclick="read_toggle(962393181, 'Read More', 'Read Less'); return false;" class="read-link" id="readlink962393181" style="readlink" href="#">Read More</a> <div class="read_div" id="read962393181" style="display: none;"> Google’s restrictions are not necessarily novel nor unexpected. It was just over two years ago Facebook faced scrutiny from federal regulators for allowing those offering credit or housing finance to restrict ad audiences by race or religion among other questionable metrics that would violate HUD’s fair housing rules. An investigation by ProPublica broke this news in October 2016. It was nearly two years later in August 2018 that HUD filed a formal complaint against the social media giant for discriminatory advertising practices. Seven months after HUD’s complaint Facebook announced sweeping changes. Both Facebook and later Google, took a blunt approach much to the chagrin of lenders and service providers. What ad filters are going away? In its official release Google revealed, “credit products or services can no longer be targeted to audiences based on gender, age, parental status, marital status, or ZIP code.” Is this the end of Google ads for reverse mortgages? To answer that question I reached out to Josh Johnson who heads up Reverse Focus’ Online Dominance SEO program and Google marketing. Here’s his explanation. Here’s what makes Google unique from other platforms and why reverse mortgage Google ads will continue to reach the intended audience. To summarize, older homeowners are intentionally seeking out reverse mortgage information on Google which means, yes-your ads will be seen by your target audience, even though you can no longer target specific age groups. <img decoding="async" class="wp-image-21372 alignnone" src="https://apirodev.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-300x169.jpeg" alt="" width="691" height="389" srcset="https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.004-300x169.jpeg 300w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.004-1024x576.jpeg 1024w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.004-768x432.jpeg 768w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.004-1536x864.jpeg 1536w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.004.jpeg 1920w" sizes="(max-width: 691px) 100vw, 691px" /><img decoding="async" class="alignnone wp-image-21373" src="https://apirodev.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-1024x576.jpeg" alt="" width="681" height="383" srcset="https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.001-1024x576.jpeg 1024w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.001-300x169.jpeg 300w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.001-768x432.jpeg 768w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.001-1536x864.jpeg 1536w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.001.jpeg 1920w" sizes="(max-width: 681px) 100vw, 681px" /> <img decoding="async" class="alignright size-large wp-image-21374" src="https://apirodev.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.002-1024x576.jpeg 1024w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.002-300x169.jpeg 300w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.002-768x432.jpeg 768w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.002-1536x864.jpeg 1536w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.002.jpeg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /> <img decoding="async" class="alignright size-large wp-image-21375" src="https://apirodev.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.003-1024x576.jpeg 1024w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.003-300x169.jpeg 300w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.003-768x432.jpeg 768w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.003-1536x864.jpeg 1536w, https://www.hecmworld.com/wp-content/uploads/2020/09/In-post-pix.003.jpeg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /> </div>

Older Americans need to face their financial fears

Covid-19 isn’t the only pandemic spreading across our nation. Fear and uncertainty are just as contagious. Two particular groups are especially worried- older Americans nearing retirement and those who are already entered their non-working years. Kiplinger reports that one in five Baby Boomer has retired and the pace of Boomer retirement increased during the pandemic. What keeps Boomers up at night? SeniorLiving-org found that nearly 1 in 2 adults feared not having enough money saved for retirement. 1 in 4 older adults fears they’ll never pay off their existing debt. In fact, a recent U.S. Census Bureau report found 1.7 million older homeowners were behind on their mortgages and fear eviction.

Debt not only can lead to sleepless nights, but it can also be an outright nightmare. Case in point, last August the CFPB reported, “Since April 2020, the Census Bureau has tracked the number and characteristics of homeowners struggling to make their mortgage payments. As of July 2021, an estimated 682,400 older adults, defined as adults age 65 and older, were behind on their mortgage payments.” It’s quite alarming to learn that mortgage delinquencies and homeowners with zero confidence.

For such individuals Kiplinger’s advice to measure retirement preparedness with the 10X rule which says you should have saved 10 times your pre-retirement income by age 67 will do little to give them peace of mind. However, retirees who restructure how their debt is held could see the greatest benefit. For most Americans, their largest debt is their mortgage. That debt could be restructured in two ways.

The first is a mortgage loan modification. Older Americans suffering financial hardship may be able to get their interest rate reduced, extend the term of the loan, switch to a fixed-rate mortgage, roll late fees into the principal balance, or get a reduction of the principal loan balance owed.

The second is a reverse mortgage. What I like to call the ultimate loan modification. Like a traditional loan modification a reverse mortgage typically extends the term of the loan over the homeowner’s life in the home, accrued interest is rolled into the principal balance, and best of all required loan payments can be completely eliminated! Unlike a loan modification homeowners don’t have to prove their ability to make the required mortgage payments each month but rather their financial capacity to meet their existing expenses and stay current on their property charges to avoid having the loan go into default. Which do you think an older homeowner with substantial home equity would qualify for? A loan modification or a reverse mortgage? A homeowner with a decent credit history but a high debt-to-income ratio would likely not qualify for a modification. However, they may stand a better chance of restructuring their biggest debt into a Home Equity Conversion Mortgage.

Selling and downsizing are also an option but few want to move, and those who end up renting are exposed to rent inflation which is reported to be at its highest level in 30 years.

For a problem to get better one has to first acknowledge its existence. Older homeowners would do well to face their financial fears today while interest rates are low and home values are high. If not, sleepless nights may become the new normal.

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.