Jack Guttentag in Forbes
The practice, almost without exception, is to deliver HECMs as a stand-alone. HECM reverse mortgage lenders are barred by HUD rule from delivering HECMs in conjunction with any other financial instrument. And every annuity provider we have queried has an internal rule that prohibits annuity sales when the funds used for the purchase have been obtained from a reverse mortgage.
The rationales for these restrictions are flimsy, and their cost to the retirees who are affected by them is enormous.
Check out the article here.