Academy Releases Model Compliance Language For Retirement Planners

Academy Releases Model Compliance Language For Retirement Planners

The Academy for Home Equity in Financial Planning at the University of Illinois at Urbana-Champaign released compliance guidance that financial service companies (i.e., broker/dealers) can use to update their language, policies and procedures around educating clients on the use of home equity in retirement planning.

“Throughout the year, I am contacted by loan officers who want to work with financial planners but aren’t sure what information to provide them,” says Shelley Giordano (pictured above), academy co-founder and head of enterprise integration at Mutual of Omaha Mortgage. “This information can be shared with individual planners, broker/dealers’ compliance departments and directly with high net-worth individuals who may not currently understand the value of home equity as a retirement asset.”

The compliance guidance explains how reverse mortgages work, what financial planners can and cannot do when advising clients on reverse mortgage options and highlights how in May 2014, FINRA changed its guidance about the use of home equity for retirement and no longer describes reverse mortgages as a “loan of last resort.”

On the same day that the compliance guidance was released, nationally-recognized retirement expert and academy member Jamie Hopkins of the Carson Group released a YouTube video directed at financial advisors that explains why it’s their responsibility as fiduciaries to educate their clients on all retirement options, including the strategic use of home equity.