Basement-Dwelling Millennials Beware: Reverse Mortgages May Evaporate Your Inheritance
Making the case for reverse mortgages is Shelly Giordino - a former executive at reverse mortgage company Security 1 Lending, who co-founded the Funding Longevity Task Force in 2012.
Giordino now works for Mutual of Obama's reverse mortgage division as their "head cheerleader" for positive reverse mortgages research. One Reverse Mortgage CEO Gregg Smith said that the group is promoting "true academic research" to convince the public that reverse mortgages are a good idea.
Mayer under fire
University of Massachusetts economics professor Gerald Epstein says that Columbia may need to scrutinize Mayer's business relationships for conflicts of interest.
"They really should be careful when people have this kind of dual loyalty," said Epstein.
Columbia said it monitors Mayer’s employment as CEO of the mortgage company to ensure compliance with its policies. “Professor Mayer has demonstrated a commitment to openness and transparency by disclosing outside affiliations,” said Chris Cashman, a spokesman for the business school. Mayer has a “special appointment,” which reduces his salary and teaching load and also caps his hours at Longbridge, Cashman said.
Likewise, Boston College said it reviewed Professor Munnell’s investment in Mayer’s company, on whose board she served from 2012 through 2014. Munnell said another round of investors in 2016 bought out her $150,000 stake in Longbridge for an additional $4,000 in interest.
"Anytime I had a conversation like this, I had to say at the beginning that I have $150,000 in Longbridge," said Munnell. "I had to do it all the time. I’m just as happy to be out, for my academic life."