In 2014, there were 3.6 million Hispanics aged 65 and over in the U.S.; According to the U.S. Department of Health and Human Services, that number is projected to grow to 21.5 million by 2060 (as shown in the graph below).
The Reverse Review states that, “for many Latinos, reaching a sustainable retirement and maintaining homeownership are still difficult due to a variety of financial and cultural factors.”
Here are some of those factors:
“Very few Latinos have access to Individual Retirement Accounts, and even if they did, they often didn’t have enough disposable income during their working years to fund them… The result is that more than 60 percent of Latino seniors do not have sufficient income for retirement.”
“… a quarter of Latino clients prefer to conduct business in Spanish, and the mortgage industry does not have many fluent Spanish speaking sales staff. This means there is a lack of access to good advice and plenty of misinformation about lending in general. Loans are complicated to understand in the first place, without adding the extra difficulty of discussing terms and conditions in another language.”
Here is their solution:
The New American Dream Initiative (a partnership with NAREB to increase minority participation in the mortgage industry). New American Funding through their ‘Latino focus department’ is working with real estate professionals to help explain the reverse mortgage process in a “way that demystifies the process, while providing accurate information to Latino customers and their families.”