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Changes due for reverse mortgages


The Department of Housing and Urban Development has issued new rules that will boost the costs of reverse mortgages and reduce the amount of equity that seniors can borrow through the HECM program, reports InvestmentNews. Existing reverse mortgages won’t be affected when the new rules go into effect Oct. 2, according to the publication. See the full story below. Also, registered investment advisors will be required to report more information, including their use of separately managed accounts, branch office operations and social media, on their Form ADVs starting Oct 1, according to an article in Investment Advisor magazine. RIAs “have to collect more information in a different way than they had in the past,” Monique Botkin, associate general counsel at the Investment Adviser Association, told the publication. Read the details below.

Reverse mortgages under fire again ​

By Mary Beth Franklin

Source: InvestmentNews

The Consumer Financial Protection Bureau (CFPB) issued a new report warning seniors against using a reverse mortgage as an income bridge to delay collecting Social Security benefits. While the report rightly points outs the potential risks of reverse mortgages, it demonstrates little understanding of the nuances of Social Security claiming strategies and overstates the typical cost of a reverse mortgage in today’s marketplace.


Big Form ADV Changes Coming Soon. Are You Ready?

By Melanie Waddell

Source: Investment Advisor magazine

Registered investment advisors are bracing for major reporting changes regarding their Form ADVs that begin Oct. 1. Monique Botkin, associate general counsel at the Investment Adviser Association, assembled a working group about eight months ago to help RIAs get up to speed on what’s required. “It is a very significant change” in the way advisors must report information, Botkin said in a recent interview.


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