Survey says: Seniors' attitude about reverse mortgages reveal progressMortgagePress.com2006 Financial Freedom Senior Sentiment Survey, educating seniors, Financial Freedom, loans
According to the 2007 Financial Freedom Senior Sentiment Survey,
the fourth annual survey from Financial Freedom, a subsidiary of
IndyMac Bank FSB, many seniors have at least heard of reverse
mortgages, and nearly half of them have a positive opinion about
these unique loans, yet many more seniors remain skeptical, have
not heard of them or do not feel they know enough about them.
The survey finds that 40 percent of seniors have heard, read or
seen some information about reverse mortgages. This is consistent
with the 2006 Financial Freedom Senior Sentiment Survey (41
percent) and up from 35 percent in 2005. In addition, nearly half
(49 percent) reported a favorable opinion, indicating reverse
mortgages were a credible financial tool (15 percent), a good idea
for low-income households (14 percent), something they would
consider (16 percent) or would recommend to a family member (four
percent).
While this illustrates the industry's success, the survey also
revealed there is more work to be done in educating seniors. Still
more than half (54 percent) said they haven't heard, seen or read
anything about reverse mortgages or considered taking out a reverse
mortgage in the last year. Roughly one quarter (24 percent) had an
unfavorable opinion, and almost half (44 percent) said they have
heard of them, but don't know enough about them to offer an
opinion.
"As an industry, we've come a long way in a short time when you
consider that the industry has grown from 7,000 to over 100,000
loans in just a few years," said Michelle Minier, CEO of Financial
Freedom. "For the industry to continue its growth, we need to
remain committed to educating seniors, their advisors and financial
professionals who play an integral role in the process. This data
also reveals a tremendous opportunity for reverse mortgage lenders
and brokers to connect with seniors by showcasing their expertise."
The Financial Freedom Senior Sentiment Survey also found that
seniors trust financial professionals less than other
professionals. However, "being an expert in his field" was second
only to ethics in seniors' list of reasons for trusting a
professional.
Regarding reverse mortgages, the survey also revealed:
-Multimedia sources are the most effective forms of educating
seniors about reverse mortgages.
-Almost three quarters of seniors learned about reverse
mortgages through a form of mass mediamedia (34 percent),
advertising/infomercial (23 percent), AARP (10 percent) and the
Internet (seven percent). Very few seniors learned about reverse
mortgages through personal contacts such as friends or family (10
percent), a financial advisor (five percent), accountant (one
percent) or lawyer (one percent).
-Among the small sample of seniors who have considered a reverse
mortgage, 77 percent said that their children's opinion would have
little to no impact on their decision.
For more information, visit www.financialfreedom.com.
