• Joseph DeMarkey, Reverse Mortgage Funding LLC; • George Downey, CRMP, Harbor Mortgage Solutions Inc.; • Leslie Flynne, PHH Mortgage Corporation dba Liberty Reverse Mortgage; • Kevin Gherardi, Reverse Technology Group LLC; • Scott Harmes, CRMP, C2 Financial Corp.; • Tim Isgro, Reverse Mortgage Funding LLC; • Elly Johnson, All Reverse Pro; • Michael Kent, PHH Mortgage Corporation dba Liberty Reverse Mortgage; • Joe Langner, ReverseVision; • Ryan LaRose, Celink; • Megen Lawler, Bay Docs; • Rick Lieber, American Advisors Group; • Christopher Mayer, Longbridge Financial LLC; • Michael McCully, New View Advisors LLC; • Scott Norman, Finance of America Reverse LLC; • Alex Pistone, Mutual of Omaha Mortgage; • Loren Riddick, CRMP, Thrive Mortgage; • Kristen Sieffert, Finance of America Reverse LLC; • Robert Sivori, RoundPoint Mortgage Servicing Corp.; • Jules Vogel, American Advisors Group; and • Jay Wright, Bradley. The board of directors subsequently elected the following officers: • Scott Norman, co-chair; • Michael Kent, co-chair; • Robert Sivori, vice chair; • Jim Cory, CRMP, vice chair; • Leslie Flynne, secretary; and • Michael McCully, treasurer. Journal of Financial Planning Highlights Importance of Reverse Mortgages The December 2021 issue of the Journal of Financial Planning featured an article noting that reverse mortgages can provide an essential risk mitigation tool for millions of retirees—dramatically reducing exposure to longevity and market risks while growing their investment portfolios. The article found retirement strategies that use a reverse mortgage as an alternative source of cashflow to a traditional investment portfolio hold the greatest benefit for mass affluent Americans—generally defined as those with $100,000 to $1.5 million in investible assets. Read the full article at bit.ly/3Ef3aa4. The press is talking about ... Columnist Discusses Market Risks and Reverse Mortgages In a guest column for RetirementDaily.com, CPA Robert Klein offered a convincing case for why a Home Equity Conversion Mortgage (HECM) should be used by new retirees to manage and mitigate against sequenceof-returns risk. “Negative returns in the first few years of retirement, if not protected from sequence of returns risk, can significantly increase the possibility of premature portfolio depletion,” Klein says. “A HECM mortgage, with its accompanying credit line, provides tax-free liquidity during this critical period to insure against this risk in lieu of taking potentially taxable distributions from an investment account that’s declining in value.” Using a 65-year-old retiree with a 25-year life expectancy, a $1 million retirement portfolio, annual withdraws of five percent or $50,000 that increase by three percent each year, and an average rate of return of seven percent, Klein presented three detailed scenarios to help illustrate his case. A reverse mortgage, he adds, “protects you from the temptation to sell when the market is on its way down and attempting to time the market when buying back in, both of which are generally losing propositions.” Read the full article at bit.ly/3qdnwf5. Columnist: Reverse Mortgages Mitigate Tax Bites MarketWatch tax columnist Bill Bischoff explained how a reverse mortgage can provide a better alternative solution to finance a retirement compared to selling a home that has appreciated greatly over time and would generate a big tax bill when sold. “An unwelcome side What’s News continued on page 10 REVERSE MORTGAGE / MARCH-APR I L 2022 9
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