New Financial Planning Software Evolves to Meet Reverse Mortgage Market

With the recent interest gained by financial planning professionals in the use of reverse mortgages as a retirement planning tool, many in the industry have worked to educate financial planners of the benefits they may be able to offer their clients. 

But some of that work may already be done, as a result of being built in to a well-known financial planning software tool they use in their analysis and advice. 

As of three years ago, financial services software giant Fiserv began including a reverse mortgage calculation capability in its popular AdvisorVision software, which currently comprises about 500,000 retirement plans. The change, the company says, was brought to address the retirement income needs of baby boomers, now “rapidly” entering retirement. Today, that software is also incorporating a Home Equity Conversion Mortgage Saver calculation, again based on consumer demand and retirement planning. And the company is looking into other ways to include reverse mortgages in its programs as well.

“We work closely with our clients and partners in the financial services industry to determine needs of investors and their goals and priorities,” Jeremy Schlarb, business solutions analyst for the company told RMD. “Fiserv continually enhances our solutions to help provide the wealth management firms we serve with innovative solutions that will help them, and their investors, thrive. More recently, the demand for reverse mortgage calculations and illustrations has been rising, so we’re exploring enhancements in our next release of AdvisorVision.” 

Similar to other reverse mortgage calculators, the program seeks the home value, expected growth rate, loan rate, borrower age and other information to determine how a reverse mortgage will impact the overall retirement plan. Most recently, the software’s HECM Saver capability was included in direct response to the product offering making its entry into the market, Schlarb says, setting it apart from other types of financial planning software. 

The company will continue to track reverse mortgage developments and shape its products accordingly, with the expectation that many more financial planners will look to reverse mortgages as a retirement tool. 

“In my research, I’ve come across several publications that emphasize the increased popularity of reverse mortgages for house-rich homeowners (62 and older seeking additional retirement income),” Schlarb says. “Recent research also indicates that housing price appreciation will have an effect on the demand for reverse mortgages as well.”

Written by Elizabeth Ecker

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