“As advisors, we’re often programmed to believe we are fiduciaries of the capital clients give us,” Tai-Chim Tung observes in Advisorpedia. “That’s certainly true,” she says, “but a big part of being an advisor is the actual business of advice..”.
As a financial professional, one uncomfortable aspect of this “actual business of advice” is that, while you’re often asked, nowadays, about reverse mortgages, (representing a “product” not offered by your broker-dealer or parent company). Even as your own reading and study are describing the use of housing wealth as a “critical tool for retirees looking to protect their lifestyle and legacy,” you’re fearful of discussing reverse mortgages with your clients.
After all, you’re thinking, as the principal financial advisor for many of your clients, you are the one who has the most detailed understanding of their past and current financial situation, their investment profile, housing intentions, and their general health situation. If anyone is in a position to address their questions about financial options, it’s you. You’re dedicated to “prioritizing the best interests of each client (FINRA’s Suitability Rule and SEC’s Regulation Best Interest), and would not like to steer clients away from options that might prove appropriate for them. At the same time, you’ve no desire to violate the policies of your broker-dealer.
While you certainly must proceed cautiously when talking with clients about the products and services outside the purview of your broker-dealer, the topic of government-insured reverse mortgages belongs on your need-to-know list. Careful not to either recommend or “critique” reverse mortgage financing, (and explaining that this is outside your area of expertise), you might suggest to certain clients that they seek the advice of a reverse mortgage specialist.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org Equal Housing Lender