There is currently a huge debate raging in the reverse mortgage and financial lending communities. The debate is about whether or not the reverse mortgage loan should be allowed to be tied to other financial products that are offered to seniors
Some people say that there should be allowed some tying together of the products that are offered to seniors for financial issues. Some people say that other financial products should be available from the same lender but should not be marketed aggressively towards the reverse mortgage consumer. And still others say that reverse mortgage lending should be done at separate financial institutions so that there is no confusion for the senior about other products offered when getting a reverse mortgage loan.
Basically, people who sell products like life insurance want to be able to cross-sell this with the reverse mortgage without interference from the industry. However, people with concerns about senior's rights want to make sure that the reverse mortgage borrower isn't being pressured into the purchase of other types of financial products that actually put them into more debt. The debate is about how to balance these two concerns.
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Question of the Day: Should reverse mortgages be allowed to be tied to other financial products like life insurance?
