Liberty Partnership Brings Reverse Mortgages to Financial Planning Software

Through a partnership between Liberty Reverse Home Equity Solutions and PIEtech, the lender and software developer are incorporating reverse mortgages into financial planning software.

Reverse mortgage calculations will be included for the first time in PIEtech’s financial planning software MoneyGuidePro, with a release date planned for the third quarter of 2014.

The newest features will enable financial planners to develop retirement plans for their clients using reverse mortgage simulations and calculations.

“As financial advisors continue to seek solutions to help ensure clients meet their retirement goals, we felt it is important to include the value of available home equity when developing a comprehensive retirement plan,” said Bob Curtis, president and CEO of PIEtech. “Once I learned the facts about reverse mortgage loans, especially the FHA Home Equity Conversion Mortgage (HECM) program, I felt strongly that we need to provide our users with the ability to evaluate reverse mortgage loans as part of their financial planning process.”

Financial planners have touted the use of reverse mortgage loans in recent studies published in industry journals, with several researchers including Harold Evensky, John Salter and Shaun Pfeiffer spearheading the effort. In particular, their research has found a greater rate of retirement success when a reverse mortgage line of credit or monthly payment option is selected by the borrower.

“When I learned of the HECM loan features and the fact that the unused Line-of-Credit may grow over time, independent of the home’s value, I was interested how the product might assist me with managing the cash and distribution requirements for my clients, especially when portfolio assets are depreciated,” Evensky said. “Turns out, the use of a HECM loan as a ‘Standby’ can serve as portfolio longevity insurance when used as part of a retirement plan.”

Financial planners using the MoneyGuidePro software can retrieve a reverse mortgage quote from Liberty to determine how much money their clients are able to borrow or keep in a line of credit.

Liberty has seen success in working with financial planners through a channel focused on working with advisors.

“Through our experience, we have found that advisors embrace reverse mortgages once they learn the facts about the loan,” says Tom Dickson, consultant for the channel.

The company says it is committed to strengthening the partnership with planners through the software launch.

“Integrating reverse mortgage loan calculations into the MGP interface is a significant step forward in partnering with financial advisors to quantify the impact of a reverse mortgage loan on a client’s retirement plan.” said Otto Kumbar, President and CEO of Liberty Home Equity Solutions, Inc. “We are pleased that MGP has entrusted Liberty with the responsibility of educating its valued clients on reverse mortgage loans.”

Written by Elizabeth Ecker

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