Industry-leading reverse mortgage lender American Advisors Group (AAG) is gearing up for the upcoming Veterans Day holiday in the United States by holding an event designed to specifically communicate the potential benefits of a reverse mortgage loan. for seniors who are also United States Veterans. military.
Facilitated by AAG’s recent feature in Ameriforce Media’s Military Families magazine, AAG identified an opportunity to educate veterans on how their retirements, and some of the specific issues affecting them, could be affected by the addition of a retirement loan. reverse mortgage in your retirement financing plans.
The company and an originator who is also a veteran also spoke with RMD about some of the details of older veteran demographics that reverse mortgage loan officers should be aware of when discussing reverse mortgage options with former veterans. service.
Unique Circumstances of Older Veterans
As the United States grapples with the unique difficulties faced by retirees and various challenges that exist in retirement financing, keeping the unique circumstances faced by veterans in the forefront helps emphasize how a reverse mortgage can uniquely benefit those who have served. in the army. This is according to Robb Charles, reverse mortgage originator for AAG based in Henderson, Nevada, who is a veteran of the United States Army.
“Having survived the perils of military life myself, from the wars in Southeast Asia to Iraq and Afghanistan, I know firsthand the unique challenges veterans face,” says Charles. “Many senior veterans don’t like asking for help and may be suspicious of products or companies they don’t fully understand. Also, it’s no secret that veterans, age 62 and older, have difficulty getting a job, which they may need to ease their financial burdens. To that end, reverse mortgages may be the best solution to overcome the difficult financial situations that older veterans face.”
Still, as is often the case in making most people aware of the reverse mortgage product category, once again it’s all about education.
“Until veterans are educated about the benefits of using home equity, the financial situations they face may continue to worsen for many older veteran families,” says Charles. “Loan officers need to understand the challenges older veterans face. AAG trains its loan officers to first go through a discovery phase and listen to what your client needs above all else so that we can find the specific programs that best fit and provide the necessary education for them and their financial advisors, to make the decision. correct decision for his retirement.
In terms of best practices that loan originators across the industry can use to connect with potential customers who are military veterans, Charles says taking extra time to understand the unique circumstances veterans face as well as the pressures on most of older Americans is essential to providing necessary context-based information about reverse mortgages.
“Being a senior veteran myself and having closed face-to-face reverse loans for over 15 years, I believe the industry should place an emphasis on education, compassion and extra patience when working with veterans,” shares Charles. “Many may be experiencing real physical disabilities and are looking for a financial solution to provide peace of mind, which can be achieved using home equity benefits.”
To get a better idea of how the reverse mortgage industry could potentially serve veterans and their unique circumstances, it can be important to understand their place in the country. According to the Housing Assistance Council for Older Veterans ReportVeterans make up 9% of the total US population. 13 million veterans (as of 2016) are age 55 and older, which is more than two-thirds of the US veteran population.
Like other demographic trends across the country, the share of veterans age 85 and older is expected to double by 2030. More than 60% of veterans age 65 and older have some type of disability, which could increase the importance of aging in place for this segment of the population.
Activity around VA loans, a $0 initial mortgage program available to veterans, service members and select military spouses, is also on the rise. According to data from the Aging Veterans report, 2% of all homes purchased in 2005 were VA loans for American veterans. Less than a decade later, in 2014, that figure had more than quadrupled to 9%.
As Veterans Day approaches, putting together a reverse mortgage webinar for a military-focused segment of borrowers seemed like an appropriate move according to Shannon Robinson, vice president of strategic sales and execution at AAG.
“When AmeriForce Media approached us with the opportunity to be featured in their September issue of Military Families magazine, it seemed like the right time to show our appreciation to those who have served and offer an educational webinar to our military audience,” Robinson told RMD. . “Military veterans make up a large portion (13 million) of our older generation and with the recent uncertainty of COVID-19, many of them are concerned about their retirement and the financial hurdles they could face due to the pandemic.”
Many of the potential advantages that come with the modern reverse mortgage landscape for all seniors also apply to seniors who have served in the military, and making veterans aware of those potential benefits is an important part of presentation, says Robinson.
“Given the current environment of low rates and high home values, we wanted to prepare and educate them about the opportunity to take advantage of home equity as an option,” he explains. “This rings especially true for veterans, as they have the option of considering a VA loan with AAG.”
Veterans Day in the United States is Wednesday, November 11, and the AAG webinar designed for veterans will take place on Thursday, November 12. Enrollment is still open. availableaccording to AAG representatives.