Financial planners are now finding it much easier to recommend reverse mortgages after the evolution of the product. Evelyn M. Zohlen, certified financial planner, founder of Inspired Financial and chair of the Financial Planning Association, discussed the evolution of the product during a recent Reverse Mortgage Daily podcast
Zohlen has been working with reverse mortgage products since 2003 and said that while they were pretty "clunky" back then, reverse mortgage products of today are much more evolved. Initially she would look for to her products to escape the complexities of reverse mortgages but realized that it was the right tool for her clients. This forced her to work step-by-step with her clients, according to RMD
"The last 17 years have brought pretty significant changes In the reverse mortgage and home equity spaces in some really positive ways," Zohlen says. "There have been bumps in the road on that journey, but I would say in the past five years we have seen more positives than bumps."
The product has become more transparent, costs associated with it are better to understand and the usage of the product is easier to explain, according to the report.
"There’s also been a better understanding of how a reverse mortgage does not have to be the solution of last resort, but may actually help the client if it’s incorporated into their planning process earlier," said Zohlen.
to learn more about why reverse mortgage products have been easier for financial planners to recommend.