RMM MayJune 2021

Numbers A Closer Look at Home Equity in Financial Planning Numbers Indicate How Financial Planners Discuss Reverse Mortgages Source: “Home Equity in Financial Planning” white paper. In his white paper “Home Equity in Financial Planning,” Craig Lemoine, executive director of the Academy for Home Equity in Financial Planning at The University of Illinois at Urbana-Champaign, illustrates the need for home equity release programs. “The Academy of Home Equity in Financial Planning’s mission is to develop and advance, for retirees and their financial advisers, a rational and objective understanding of the role that housing wealth can play in prudent planning for retirement income,” says the 2020 report, which included detailed surveys of financial professionals. Lemoine also is an associate clinical professor of financial planning at the university. Here is a closer look at some of his findings that, in some cases, compare how a Certified Financial Planner operates compared to a non-CFP. 68 percent Level of CFPs who make housing recommendations during a client’s retirement. Level of non-CFPs who make reverse mortgage recommendations as a source of retirement income. 16 percent Level of CFPs who either agree or are neutral with a statement that reverse mortgages are a positive tool to improve client security. 79 percent Level of non-CFPs who either agree or are neutral with a statement that reverse mortgages are a positive tool to improve client security. 75 percent 7 percent Level of CFPs who make reverse mortgage recommendations to fund a real estate purchase. Level of non-CFP planners who make housing recommendations during a client’s retirement. Level of CFPs who make reverse mortgage recommendations as a source of retirement income. 55 percent 33 percent 6 percent Level of non-CFPs who make reverse mortgage recommendations to fund a real estate purchase. 36 REVERSE MORTGAGE / MAY- JUNE 2021