Unsuitable Annuities Tied To Reverse Mortgages
Jul 10th, 2009 | By Charles L. Stanley CFP® ChFC® AIF® | Category: NewsAs more financial advisors sell insurance, a recent report indicates some could be unsuitably cross-selling annuities in conjunction with reverse mortgages.
The U.S. Government Accountability Office (GAO) report, requested by Sen. Claire McCaskill (D-MO) and released in June, cites recent cases in which reverse mortgages were sold to seniors to get them to inappropriately invest in annuities.
A reverse mortgage, generally limited to persons at least 62 years-old, is similar to a home equity loan or credit line. But the borrower needs no income to qualify. Typically, the loan needn’t be repaid until the borrower moves, sells the home or dies.
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Unsuitable Annuities Tied To Reverse Mortgages
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