May-June2020 Issue

“Mike Fitzpatrick was a thoughtful, inquisitive and open-minded individual, which helped make him an effective congressman. He listened intensively when con- stituents and policy advocates came to him with issues and was willing to work equally with members of Congress from the other party, as well as his own Republican col- leagues when he believed an issue should be addressed. He provided real leadership on our issues while he was in the House. I am deeply saddened to see him pass away at such a young age,” NRMLA CEO Peter Bell says. The press is talking about ... Jane Bryant Quinn’s New Thinking on Reverse Mortgages During an interview with Next Avenue editor Rich Eisenberg, author and esteemed financial journalist Jane Bryant Quinn explains why she changed her mind about reverse mortgages and feels better about recommending them as a retirement planning option. “Yes, I’m feeling better about them,” says Quinn. “In the past, one of the problems with reverse mortgages was that people who almost ran out of money took them, and the reverse mortgage income wasn’t enough to pay their bills and keep up their house. So, they’d run out of money and be at the risk of foreclosure.” She then explains how the HECM rules changed. “Now, if you apply for a reverse mortgage and the lender’s analysis is that you might be unable to pay your bills after ten or 15 years, you don’t get all the money to spend,” Quinn continues. “The lender keeps some aside to pay for the property taxes and keep the house going. So, there are fewer risks for people who don’t have much money.” Singletary: Reverse Mortgages Appealing, But Consider Issues Michelle Singletary, The Washington Post’s nationally syndicated personal finance columnist, advises consumers to first understand the rules that can impact them or their heirs before getting a reverse mortgage. Singletary notes that, “Under certain conditions, some spouses may be able to stay, but others may not be able to hold on to the home,” while homeowners face foreclosure if they can’t pay their property taxes or meet other loan obligations. Singletary also emphasizes that consumers who have adult children or relatives living with them need to under- stand what can happen when a reverse mortgage comes due. “I’m (also) concerned that some seniors will use the money from a reverse mortgage not to supplement other income or to make needed home improvements, but instead as a pot of money that they will too quickly deplete,” she says. In Washington, they’re talking about ... Dana Wade Nominated to Be Next FHA Commissioner The White House nominated DanaWade to be the next Assistant Secretary for Housing/Federal Housing Administration Commissioner. If confirmed by the Senate, Wade would replace Brian Montgomery, who has served as FHA Commissioner since May 2018 but is awaiting Senate approval to be the next Deputy HUD Secretary. Wade served as the acting FHA Commissioner from July 2017 to June 2018 followed by a stint at the Office of Management and Budget. She has also held some of the most senior staff positions in Congress, serving as the deputy staff director The Biz continued on page 12 Dana Wade REVERSE MORTGAGE / MAY-JUNE 2020 11