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Why more Americans will access their home equity to support their retirement years
SHANNON HICKS SITS DOWN IN OUR HOT SEAT PG. 20
DR. YUNG-PING CHEN: THE EARLIEST ADVOCATE PG. 24
GENERATING LEADS IN A POST-FA WORLD
PG. 27
UNDERSTANDING PROBATES PG. 28
The Reverse Review August 2015
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2 | TRR
become a Partner
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Join the leader who is taking the industry forward and setting new standards. 1-855-77-URBAN (855-778-7226) • www.ufawholesale.com
*Since December 2011. Based on trailing 12 months’ endorsement volume. Source: Reverse Market Insight. For business and professional use only. Not for consumer distribution.
®
UFA’s HomeSafe reverse mortgage is a proprietary product of Urban Financial of America, LLC, and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. Currently available in AZ, CA, CO, CT, FL, HI, IL, NY and TX. NMLS #2285 (www.nmlsconsumeraccess.org); Corporate Office: 8909 South Yale Avenue, Tulsa, OK 74137. Not all products and options are available in all states. Terms subject to change without notice. ©2015 Urban Financial of America, LLC. All Rights Reserved. CALIFORNIA BUSINESS NAME: URBAN FINANCIAL GROUP OF AMERICA, LLC. NEBRASKA BUSINESS NAME: REVERSEreversereview IT! LLC UFA 204 [Exp 7/2016] . com 8 TRR | 3
The Reverse Review August 2015
The value of A STRONG ALLY:
Direction.
The Reverse Mortgage landscape can be unforgiving and is ever-changing. The clear path today can take you in the wrong direction tomorrow. Celink has successfully guided its clients and the servicing industry through over a dozen HECM program changes in the past 18 months.
For more information, please contact Katie Kirkham, Director of Client Relations at (844) 228-2101. 4 | TRR
celink.com | (844) 228-2101
From the EDITOR RE
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A NOTE FROM JESSICA GUERIN
Meet the Team
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REVERSE review A U GUST 2015
The statistics are staggering: Only 60 percent of baby boomers say they have set aside some money for retirement. People are generally uncomfortable with their financial state of affairs, with 73 percent saying they are not confident they will have enough money to retire. The situation has forced many to hold off on retirement—36 percent say they plan to retire after 70.* Countering this bleak outlook is the fact that 80
Why more Americans will access their home equity to support their retirement years
SHANNON HICKS SITS DOWN IN OUR HOT SEAT PG. 20
DR. YUNG-PING CHEN: THE EARLIEST ADVOCATE PG. 24
GENERATING LEADS IN A POST-FA WORLD
PG. 27
percent of Americans age 65 and older own a UNDERSTANDING PROBATES PG. 28
home. For many, this home is their greatest, most precious asset, one that could help them find the financial security they so desperately seek as
SENIOR PUBLISHER
Reza Jahangiri PUBLISHER
Erik Richard EDITOR-IN-CHIEF
Jessica Guerin
CREATIVE DIRECTOR
Traci Knight
COPY EDITOR
Kersten Deck MARKETING DIRECTOR
Alycia Greer
they approach their retirement years. AUGUST 2015
COVER
Why more Americans will need to utilize their home equity in retirement
In this month’s cover story, we take a look at how home equity could help aging Americans bolster their finances. While some may be reluctant to tap into this asset—holding onto a generations-old belief that the home is sacred—the facts indicate that many Americans will not have a choice. Thankfully, tools like the HECM can provide creative ways for senior homeowners to access their equity. While much of the public is largely unaware of the solutions this product offers, HECM proponents agree that in time, many will come to see how this unique financial tool can help them strategically utilize their greatest asset. * The Insured Retirement Institute, April 2015
JESSICA GUERIN Connect with me about how you can participate. Reach me at jessica@reversereview.com
Printer The Ovid Bell Press Advertising Information phone : 630.207.3882 email : jessica@reversereview.com Subscriptions email : information@reversereview.com Editorial Content email : jessica@reversereview.com © 2015 Reverse Publishing, LLC All rights reserved. Reproductions or distribution of any materials obtained in the publication without written permission is expressly prohibited. The views, claims and opinions expressed in article and advertisement herein are not necessarily those of The Reverse Review, its employees, agents or directors. This publication and any references to products or services are provided “as is” without any expressed or implied warranty or term of any kind. While effort is made to ensure accuracy in the content of the information presented herein, Reverse Review Publishing, LLC is not responsible for any errors, misprints, or misinformation. Any legal information contained herein is not to be construed as legal advice and is provided for entertainment or educational purposes only. Postmaster : Please send address changes to The Reverse Review, 3800 West Chapman Ave., Orange, CA 92868
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8 TRR | 5
The Reverse Review August 2015
Want the best Reverse Mortgage Leads?
Drink from the source. Generating over 100,000 Reverse Mortgage inquiries annually, EPath Digital is the direct source for leads. How do we do it? We utilize large nationwide media buys with web properties that enable us to engage the right 62+ homeowners. Also, we own and operate a content website and magazine targeted to the new 50+ consumer at NowItCounts.com. At EPath Digital we are continually testing and refining our marketing mix based on our clients’ quote and closed loan ratios to create the lowest cost per funded loan possible. Working alongside our clients has enabled us to grow together. Whether you are a top 10 lender, a single state broker, or somewhere in-between, we feel there is still considerable room for you to grow!
“
What our clients say: Reverse Mortgage Solutions has been using EPath Digital to generate leads for over three years and they have consistently produced while ramping up volume to meet the needs of our growing sales staff. They have always been open to make adjustments along the way to adapt to changes in the overall lending environment, and changes within our organization, which has helped us grow our relationship over time. I recommend EPath Digital to anyone looking for a marketing partner that delivers. Jamie A. Director of Retail Marketing Reverse Mortgage Solutions, Inc.
“
EPath Digital has been delivering superior quality reverse Internet leads since mid 2014 to our company. We find that EPath Digital’s leads have very high conversions & they deliver the leads rapidly if your scaling to multiple head counts. Definitely worth giving them and your business a shot! Shay S. Owner SNNY LLC
EPath Digital reverse mortgage leads facts: Multiple verification tools to ensure that the information provided by the homeowner is valid. We generate our own leads – we do not purchase and resell from other sources. The EPath executive team are pioneers in the Internet Mortgage Lead space (dating way back to the 90s) and we understand what it takes to build a mutually successful long term partnership with our clients.
Call 800-695-3976
Visit us at: epathdigital.com 6 | TRR
®
table of contents
TRR 8.15
11 | Industry News
24 | Originating
REVERSE MORTGAGE DAILY
Dr. Yung-Ping Chen and his dedication to home equity conversion
Headlining stories of the past month
32
The Earliest Advocate
BOB TRANCHELL
13 | Stats
June’s top lenders and HECM endorsement stats through May
27 | Marketing
REVERSE MARKET INSIGHT
Generating Reverse Mortgage Leads in a Post-FA World
16 | NRMLA News
How a direct mail campaign can work for you
Read about the association’s current initiatives. MARTY BELL
BRYAN MOORE
28 | Legal
Probate 101
19 | Roundup
A collection of recent facts and surveys affecting the reverse market
An overview of the probate process for reverse specialists
20 | Hot Seat
32 | Spotlight
Shannon Hicks
President of Reverse Focus
22 | Originating
Ego and the Bottom Line Mastering the human side of business TABATHA ADDISON
ALEXANDER J. CHAUDHRY
Tools for the Successful Loan Originator
38
22
An insider’s guide to online resources that will help elevate your game MICHAEL J. WELTMAN
38 | Last Word
It’s Getting Hot Out Here! Recent criticism of industry advertising may encourage lenders to adapt to a new climate.
28
MICHAEL D. KENT
FEATURE
34 | Feature The Greatest Asset Why more Americans will access their home equity to support their retirement years JESSICA GUERIN
“The fact is that Americans are living longer, approaching a long retirement without pension plans, with nominal Social Security benefits, and little in the way of savings. Many will need to consider the use of their greatest asset.
YO DO U CAN IT!
There’s no such thing as a stupid idea. REACH OUT TO US ABOUT WRITING FOR TRR. INFO@REVERSEREVIEW.COM reversereview . com
8 TRR | 7
The Reverse Review August 2015
Why You Need to Integrate
DIRECT MAIL i n to you r Reverse Mortgage Marketing: The
Right Offer Mailed To The Right List of Homeowners Can Net You a Cost Per Funded Reverse Loan of
$900 - $1,900
(depending on your call center’s ability to convert leads!)
Call 888-980-2073 Before September 1, 2015 to Receive a Free Upgrade to LOCAL tracking phone numbers!
888-980-2073 8 | TRR
www.overflowworks.com
contributors JOHN K. LUNDE
MARTY BELL
SHANNON HICKS
John K. Lunde is president and founder of Reverse Market Insight, Inc., a performance data analysis and consulting firm specializing in the reverse mortgage industry. RMI clients include eight of the top 10 reverse mortgage lenders, plus investors, servicers and vendors to the industry. 949.429.0452 rminsight.net
Marty Bell is NRMLA’s senior vice president of communications and marketing. This is Bell’s professional Act III after careers in books, journalism and the Broadway theater. Bell is the author of two novels and four nonfiction books, and his writing has appeared in publications including Playboy and New York magazine. Bell wrote and produced the award-winning documentary film The Boys of Summer and produced 15 Broadway shows (including Ragtime, Fosse and Dirty Rotten Scoundrels) that won 27 Tony Awards.
Shannon Hicks serves as president of Reverse Focus (formerly Reverse Fortunes), a training and technology company for the reverse mortgage industry. Hicks was instrumental in the development of the first national reverse-specific CRM and produced the e-learning course interface for Reverse Basics, an e-learning tool for the industry. He also hosts a weekly podcast, “Reverse Focus Weekly,” in addition to two weekly videos: the “Industry Leader Update” and “Friday’s Food for Thought.”
13 | Stats g
John K. Lunde
Marty Bell
Shannon HIcks
TABATHA ADDISON
BOB TRANCHELL
Tabatha Addison is VP of training and performance for AAG’s wholesale division. With a passion for people and more than 20 years of experience in leadership and professional development, Addison has traveled the world facilitating, coaching and delivering training to a variety of audiences. Addison is a certified hypnotherapist and a certified practitioner and coach with the American Board of NeuroLinguistic Programming.
Bob Tranchell heads the reverse division at GMH Mortgage. He has been in the industry for more than 11 years, working in both retail and wholesale as an account executive at Financial Freedom. He joined GMH Mortgage to roll out its reverse production and expand production nationally. Tranchell teaches a four-credit CE class registered with the board for Certified Financial Planners.
22 | Ego and the Bottom Line g
Tabatha Addison
Bob Tranchell
16 | NRMLA News g
24 | The Earliest Advocate g
20 | Hot Seat g
BRYAN MOORE
27 | Generating Reverse Mortgage Leads in a PostFA World g
Bryan Moore is the sales manager for Overflowworks, a direct marketing company currently working with five of the top 10 forward mortgage companies by volume in the country. Moore specializes in reverse mortgage direct marketing for Overflowworks and has mailed millions of successful reverse mortgage mailers throughout his career. bmoore@overflowworks.com
Bryan Moore ALEXANDER J. CHAUDHRY
28 | Probate 101 g
Alexander J. Chaudhry
Michael J. Weltman
Michael D. Kent
Alexander J. Chaudhry is general counsel of FNC Title Services, a multistate title insurance agency. Chaudhry works on areas of real estate law that impact title insurance agencies with a specific focus on issues associated with HECMs. He is responsible for corporate and transactional matters, licensing, and regulatory and litigation concerns. He recently worked with state insurance enforcement officers on cyberthreat issues facing the title insurance industry.
MICHAEL J. WELTMAN
32 | Tools for the Successful Loan Originator g
Michael J. Weltman is an area sales manager for AAG, supervising retail growth in Alabama, Georgia and Florida. He founded a Florida real estate CE school, where he teaches Realtors about reverse mortgages. Weltman has an MBA in finance and is on the board of directors of the Tallahassee, Florida, Mortgage Bankers Association. He holds a broker license and real estate instructor license, has a license with the Florida Department of Financial Services, and is SRES-, CAPSand CSA-certified.
MICHAEL D. KENT
38 | It’s Getting Hot Out Here! g
Michael D. Kent is president of Liberty Home Equity Solutions. Kent, who has 34 years of mortgage banking experience, previously served as executive VP and president of loan origination at RMS. He is chairman of the board of directors of Community Technology Alliance, a 501(c)3 organization that provides technology solutions for ending homelessness. Kent is also president of the board of directors of the Nancy Yeary Women’s Cancer Research Foundation, a nonprofit specializing in gynecological cancer research. reversereview . com
8 TRR | 9
The Reverse Review August 2015
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Call today or visit us online to schedule your free demo and see how Landscape™ can be incorporated into your organization. 888.840.1600 10 | TRR
landmarknetwork.com
Intuitive user controls let you design your appraisal workflow
industry news
August Update AN UPDATE OF THIS PAST MONTH’S BREAKING NEWS
The industry’s headlining stories at your fingertips UP-TO-THE-MINUTE NEWS? Visit reversemortgagedaily.com
NEWS DIRECT TO YOU: WANT EVEN MORE
HEADLINING NEWS FOLLOWING THE 1. RESIGNATION OF STEVEN ANTONAKES, THE CFPB HAS NAMED MEREDITH FUCHS ACTING DEPUTY DIRECTOR.
Fuchs recently announced her intention to step down as general counsel for the CFPB, however, she will continue to serve in this role and as acting deputy director until a permanent replacement is selected for both positions. Prior to joining the CFPB in 2011, Fuchs served as chief investigative counsel of the U.S. House of Representatives Committee on Energy and Commerce. She also previously held positions as vice president and general counsel of the National Security Archive at George Washington University.
// July 22, 2015
2. AAG SURPASSES RMS AS TOP PRODUCING HMBS ISSUER After just two years of issuing HECMbacked securities, AAG has taken the top spot for issuer volume, surpassing industry mainstay Reverse Mortgage Solutions. AAG issued $907.3 million in securities in the first half of 2015, taking a 20.1 percent market share, while RMS issued $855.2 million, according to data from New View Advisors. The company says its top position reflects sustained growth. AAG began as a retail reverse mortgage operation, later added a wholesale channel and quickly grew its market share to become the top producer of reverse mortgages by volume from its headquarters in Irvine, California.
// July 9, 2015
3. HUD UPDATES COUNSELING GUIDANCE ON RECENT REVERSE MORTGAGE PROGRAM CHANGES Following the recent implementation of Financial Assessment and nonborrowing spouse rule changes, HUD is providing guidance for reverse mortgage counselors on their requirements regarding the program updates. The department updated requirements for counselors on the various changes, including seasoning requirements, mandatory obligations, property charge funding requirements, financial assessments and nonborrowing spouse changes. Counselors must review the new rules and counsel borrowers accordingly, HUD says, noting several specifics. With respect to Financial Assessment, “the HECM mortgagee, not the HECM counselor, is responsible for performing the Financial Assessment… as well as determining whether a Life Expectancy Set-Aside will be required,” HUD states. In terms of counseling software, the Reverse Mortgage Analyzer software has been updated and counselors are still required to use it.
// July 12, 2015
4. STATE LAW UPDATES REVERSE MORTGAGE RULES, GIVES LENDERS MORE FLEXIBILITY A recent amendment to Rhode Island’s rules governing reverse mortgages will give lenders in the state more flexibility to perform certain Financial Assessment actions prior to the loan applicant’s completion of required counseling. Enacted on June 25, the amendment allows reverse mortgage lenders to order a credit report and other information for a loan application before a prospective borrower completes
a counseling program. Rhode Island lenders will be permitted to obtain information required for inclusion in a loan application—including documenting and verifying credit, income, assets and property charges— and will be able to evaluate other key Financial Assessment criteria, such as extenuating circumstances and compensating factors.
// July 20, 2015
5. FINANCIAL ADVISORS: REVERSE MORTGAGES PROVIDE ALTERNATIVE TO LTC INSURANCE In instances where long-term care insurance isn’t an option for older adults, advisors should consider recommending a reverse mortgage, taken as a line of credit, states a recent article in Financial Advisor Magazine. “Clients over age 60 may have missed the window to purchase affordable long-term care insurance,” the article states, adding that each year after age 60 premiums become “extraordinarily high” and it becomes less likely for the applicant to medically qualify. “A unique feature of the HECM reverse mortgage many are surprised to learn about is its growing credit line. As the borrower ages, the reverse mortgage line of credit continues to grow, providing access to significantly more funds. This makes the reverse mortgage a superior funding tool versus a traditional HELOC, which doesn’t grow over time and requires monthly payments.”
// July 7, 2015
reversereview . com
8 TRR | 11
The Reverse Review August 2015
WORK WITH THE INDUSTRY’S ONLY PORTFOLIO LENDER
AND DISCOVER THE RMF DIFFERENCE. Partner with Reverse Mortgage Funding LLC (RMF), and be confident that you’ll get highly competitive pricing—and that your borrowers will receive industry-leading service and support throughout the life of the loan. From origination through servicing, our experienced and knowledgeable team maintains a consistently high level of service and attention to detail. Your customers—and your reputation—deserve nothing less.
To learn more, visit partners.reversefunding.com or call 877.820.5314 (option 5) © 2015 Reverse Mortgage Funding LLC, 1455 Broad St., 2nd Floor, Bloomfield, NJ 07003. NMLS ID # 1019941. Not for consumer use. L158-Exp042016 RMF14259-0415
12 | TRR
stats June 2015
Top Lenders Report
12345 American Advisors Group
One Reverse Mortgage
Liberty Home Equity
Endorsements
Endorsements
Endorsements
1,201
534
433
RMS/S1L
UFA
Endorsements
Endorsements
343
326
Lender Endorsements LIVE WELL FINANCIAL INC
218
Lender Endorsements
REVERSE MORTGAGE FUNDING LLC
200
GEORGETOWN MORTGAGE 16
HOME POINT FINANCIAL CORPORATION
149
FIRSTAR BANK 15
PROFICIO MORTGAGE VENTURES LLC
113
SUCCESS MORTGAGE PARTNERS INC
15
HIGH TECH LENDING INC
107
LONGBRIDGE FINANCIAL LLC
13
OPEN MORTGAGE LLC
83
AMERICAN PACIFIC MORTGAGE
13
SUN WEST MORTGAGE CO INC
82
SUN AMERICAN MORTGAGE CO
12
NET EQUITY FINANCIAL INC
61
VAN DYK MORTGAGE CORPORATION
11
SYNERGY ONE LENDING INC
FAIRWAY INDEPENDENT MORTGAGE CORP
17
55
ASPIRE FINANCIAL INC
11
GMFS LLC 55
CONTOUR MORTGAGE CORPORATION
11
UNITED NORTHERN MORTGAGE BANKERS LTD 52
SOUTHERN TRUST MORTGAGE LLC
10
UNITED SOUTHWEST MORTGAGE CORP
51
CIRCLE MORTGAGE CORPORATION
9
CHERRY CREEK MORTGAGE CO INC
51
BANK OF ENGLAND
9
THE MONEY STORE
48
HOMEBRIDGE FINANCIAL SERVICES INC
9
FIRSTBANK 47
LAND-HOME FINANCIAL SERVICES
9
NATIONWIDE EQUITIES CORPORATION
43
GATEWAY FUNDING
9
PLAZA HOME MORTGAGE INC
42
GERSHMAN INVESTMENT CORP
8
RESOLUTE BANK 35 ADVISORS MORTGAGE GROUP LLC
35
MONEY HOUSE INC
33
M & T BANK
31
THE FEDERAL SAVINGS BANK
29
NORTH AMERICAN SAVINGS BANK
27
Brought to you by:
AMERICAN NATIONWIDE MORTGAGE COMPANY 27 TOWNEBANK 25 MCM HOLDINGS INC
20
UNIVERSAL LENDING CORPORATION
19
VIP MORTGAGE INC
17
MORTGAGESHOP LLC 17 SENIOR MORTGAGE BANKERS INC
17
%%%%% LOOKING FOR MORE STATISTICS? Go to rmsinsight.net for all of the industry’s latest stats and rankings. reversereview . com
8 TRR | 13
WE KNOCK OUT THE
The Reverse Review August 2015
COMPETITION
Experience | Excellence | Commitment | Pride
PRC has been FIRST IN REVERSE 15 years running. We are proud to be the first national title and Settlement Company to specialize in reverse mortgages. Our dedicated team of professionals offers the experience and knowledge to smoothly close reverse transactions—correctly. Having closed more than 150,000 reverse mortgage loans, PRC understands the importance of comprehending all HUD and lender guidelines.
TOLL FREE: (800) 542-4113 | www.PRClosings.com 14 | TRR
stats HECM Endorsement Stats Through May 2015 INDUSTRY SUMMARY
MO. 6
2,413
-8.98%
Retail Endorsement Growth
7
2,319
-3.9%
8
1,944 -16.17%
1,306 -26.3%
3,250 -20.56%
TRAILING TWELVE MONTH ENDORSEMENTS 5,000
3,000
Wholesale Endorsement Growth
-5.38%
2,000 1,000
Total Endorsement Growth
-4.94%
Wholesale *Numbers Represent Months
01
UNITS CHG%
4,160
-7.41%
1.43%
4,091
-1.66%
1,772
9
2,248 15.64%
1,514 15.93%
3,762 15.75%
2,773 23.35%
2,078 37.25%
4,851 28.95%
11
2,500
-9.84%
1,907 -8.23%
4,407
12
2,867 14.68%
1
2,874
2
2,557 -11.03%
3
2,772
8.41%
4
2,597
-6.31%
1,895
5
2,477
-4.62%
* Figures Above Reflect Change from Prior Month
TOT
0.24%
8.7%
2,073
-9.15%
4,940 12.09%
2,062 -0.53%
4,936
-0.08%
4.7%
4,716
-4.46%
1,862 -13.76%
4,634
-1.74%
1.77%
4,492
-3.06%
1,793 -5.38%
4,270
-4.94%
2,159
30,341
22,168
52,509
60% 50%
FIXED RATE PERCENTAGE
40% 30% 20%
5/1/15
4/1/15
3/1/15
2/1/15
1/1/15
9/1/14 9/1/14
12/1/14
8/1/14 8/1/14
11/1/14
7/1/14 7/1/14
10/1/14
6/1/14 6/1/14
4/1/14
3/1/14
2/1/14
11/1/13
10/1/13
5/1/14
02
5/1/14
ARM
{ FIGURE }
9/1/13
8/1/13
7/1/13
10% 5/1/13
HECM ENDORSEMENT TRENDS
UNITS CHG%
1,747 -5.16%
70%
{ FIGURE }
6/1/13
Retail
TOTAL
10
12/1/13
6 7 8 9 10 11 12 1 2 3 4 5
1/1/14
0
WHOLESALE
UNITS CHG%
-4.62%
4,000
RETAIL
FIXED
$1,200.0 $1,000.0
$400.0 $200.0
5/1/15
4/1/15
3/1/15
2/1/15
1/1/15
12/1/14
11/1/14
10/1/14
4/1/14
3/1/14
2/1/14
1/1/14
12/1/13
11/1/13
10/1/13
9/1/13
8/1/13
7/1/13
$0 6/1/13
IN THE MILLIONS
$600.0
5/1/13
HECM ENDORSEMENT
INITIAL PRINCIPAL LIMITS
$800.0
reversereview . com
8 TRR | 15
The Reverse Review August 2015
nrmla news On the Docket: A New Era for Reverse Mortgages
Upcoming Events: It’s Not Too Early to Plan Summer may seem like too early a time to plan for November—but not if you want to get the best registration price and airfare for NRMLA’s Annual Meeting & Expo in San Francisco, November 16-18.
There have been four recent developments on the HECM front: Financial Assessment finally became an integral part of the HECM origination process, in an effort to try to ensure that these loans are made to homeowners who have a likelihood of successful use of the tool to preserve their ability to stay in their home as they age. The non-borrowing spouse dilemma, an issue that has confused many current and would-be borrowers and their families, generated substantial adverse press and brought closer regulatory scrutiny, has been addressed—for the most part—by HUD’s most recent policy. The CFPB has fired a shot across the bow, telling the reverse mortgage industry it doesn’t like the way we advertise our product. Finally, in just the past two months, 600,000 boomers have entered the age cohort of HECM borrowers. We are 16 | TRR
turning 65 at the rate of 10,000 per day. Nearly 80 percent of us own our homes, according to a National Association of Realtors survey. The NRMLA/ RiskSpan Reverse Mortgage Market Index, a quarterly measure of relative movement in home equity possessed by homeowners age 62 and older, has nearly returned to its prerecession level. Together, these four items lead us into a new era for the reverse mortgage industry, an era that offers enormous opportunity. This new era calls for a sophisticated industry with a workforce that is knowledgeable and intellectually curious about demographic trends, issues of health and welfare, personal finance, money management and many other matters associated with serving an aging clientele. On top of that, we need reverse mortgage professionals with empathy and compassion for our clients, who are able to understand that no two households are alike and that
at the stage of life many of our clients deal with us, they need care, concern, trustworthiness, accessibility, responsiveness and respect. There is a lot for all of us to learn to become the sophisticated industry we must be to thrive and prosper from the market opportunity blossoming before us. It’s time to embrace the future and move forward. Building a stronger, smarter, more insightful reverse mortgage industry has been part of NRMLA’s mission from the beginning. You can count on NRMLA to use all of our channels, conferences, committees (including a new education committee just created by the Board at its June meeting), the Certified Reverse Mortgage Professional (CRMP) designation, publications, communications and websites (including a new member website, to be launched soon) to help build the knowledge our industry’s professionals will need. -Peter Bell, President and CEO
With the HUD changes finally behind us, this year’s event, “The Golden Gate to Retirement Security: Reverse Mortgages & Funding Longevity,” looks ahead at the new era and new market for reverse mortgages. In addition to our provocative, informative sessions and the opportunity to obtain CRMP and NMLS credits, this year’s conference includes a special Thanksgiving community service event, providing meals at the Curry Senior Center, as well as the second annual Reverse Scramble Golf Tournament at the historic Presidio Golf Course. Registration is now open.
nrmla news
BROUGHT TO YOU BY MARTY BELL
From Washington: HUD Explains FA Requirements and Other Policy Changes to Counselors HUD-approved HECM counselors are now
required to explain to prospective clients that
they will be undergoing a financial assessment, as well as emphasize the importance of
keeping current on property charges, but the the assessment and determine whether a life
expectancy set-aside is needed, according to guidance recently published by HUD.
HUD Notice H 2015-05 informs counselors of recent HECM program updates to
policies and requirements addressing
Financial Assessments, Property Charges,
NEW CRMP COURSES The Independent Certification Committee, the governing body that oversees the administration of the Certified Reverse Mortgage Professional designation, has approved the following online courses for continuing education credits:
Lien Seasonings, Non-Borrowing Spouse Certifications, Deferral Periods, Partially-
URBAN FINANCIAL OF AMERICA
Funded Life Expectancy Set-Asides and
. Intent and Creation of the HECM Program
Servicing Fee Set-Asides. The updates
and relevant guidance were announced in
(1 credit)
. Financial Assessment: Willingness and Capacity (1 credit)
mortgagee letters (ML) 2014-21, 2014-22,
. Financial Safeguards for Older Adults
2015-02 and 2015-06.
Counselors are reminded that they must use
the Reverse Mortgage Analyzer software during every counseling session and continue utilizing
NEWS FROM NRMLA
mortgagee, not the counselor, will conduct
(1 credit)
. Reverse Facts (1 credit) . Marketing and Ethics
(1 credit)
the Financial Interview Tool (FIT) to determine if clients qualify for other federal and state benefits.
Jim Cory Live Well Financial
Dan Hultquist Open Mortgage
4 TO VIEW A COMPLETE LIST OF APPROVED COURSES, VISIT
nrmlaonline.org.
Cory, Hultquist to Lead Education Committee NRMLA Co-Chairs Joe DeMarkey and Reza Jahangiri appointed Jim Cory, of Live Well Financial, and Dan Hultquist, of Open Mortgage, LLC, to co-chair the new Education Committee. The Education Committee will help bolster the educational foundation of reverse mortgage industry participants through curriculum development and exploring alternative delivery channels. Cory is a senior vice president at Live Well and an 18-year veteran of the reverse mortgage industry. He is a Certified Reverse Mortgage Professional who
serves as vice chairman on the NRMLA Board of Directors, the Standards & Ethics Committee and the Policy Committee. He also served on the Executive Committee and was treasurer of NRMLA from 2011 to 2012. Hultquist, also a CRMP, is a branch manager at Open Mortgage and former director of training at Generation Mortgage Company. Before joining Generation, he was a HUD-approved HECM counselor with CredAbility. Hultquist serves on the Independent Certification Committee, which oversees and administers the CRMP designation.
reversereview . com
8 TRR | 17
The Reverse Review August 2015
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18 | TRR
Number 1 in the reverse mortgage industry
roundup
THIS MONTH A LOOK AT THE NEWS AND STATS AFFECTING THE MARKET GET UP-TO-DATE retirement facts, home price stats, senior trends and HECM market developments in The Reverse Review’s monthly Roundup.
{
{
T H E SE N IOR AGENDA
DELAWARE IS NAMED THE NO. 1 DESTINATION SPOT FOR RETIREES.
Citing a large number of senior residents and tax-friendly policies, Kiplinger rates Delaware as the best state for retirees. According to the report, Delaware has modest income taxes, which exempt Social Security benefits, and no sales tax.
SENIORS SAY THEIR RETIREMENT OUTLOOK IS BLEAK.
Think their savings will last
While more than a third of workers are still claiming Social Security right away, a growing number are waiting until their mid-60s or later, according to the Social Security Administration.
48%
The Insured Retirement Institute surveys boomers on their retirement plans, revealing that:
44%
More seniors are waiting to claim Social Security.
Claim Social Security at age 62
RE T IR EM ENT F A CT S
27%
MO NE Y MAT TE R S
19%
Expect Have their $250,000 financial or more situation saved for to improve retirement during the next five years
40%
24%
28%
Report having no savings for retirement
Postponed their plans to retire
Expect to retire at age 70 or later
women
REVERSE REVIEW READERS HELP THOUSANDS OF SENIORS FIND FINANCIAL SECURITY. LET’S TALK ABOUT HOW WE CAN HELP THOUSANDS MORE.
IN T H E N E W S “Some 44% of retirees say they have used some of their home equity to help pay for retirement, and even more workers (59%) are interested in tapping home equity for retirement costs.” -U.S. News & World Report
Get involved. info@reversereview.com YOUR MONTHLY PUBLICATION FOR REVERSE MORTGAGE NEWS
42% men
Claim Social Security at age 66
27%
women
34% men
NUMBER CRUNCH
$103,200 The median balance of a retirement account
- The Federal Reserve Board reversereview . com
8 TRR | 19
The Reverse Review August 2015
THE
REVERSE review
THE
AUGUST 2015
The greatest setback for our industry was the housing crash and the popularity of the fixedrate, full-draw HECM loan.
Shannon From his favorite movie and the craziest thing he’s ever done to his thoughts PRESIDENT Reverse Focus
20 | TRR
about the reverse mortgage market, we get the facts from Shannon Hicks, president of Reverse Focus.
personal >
>
was “do it scared.” Don’t let your fears
Something nobody knows about
keep you from your dreams.
me is that I used to play in a blues
band that opened for national gospel
>
>
>
thousand of hours of enjoyment, memories and exercise.
and people. The craziest thing I’ve ever done
>
want to live, so I stay off motorcycles
room for excellence when striving for
and only watch races.
success.
My favorite movie is The Count of
>
fun s
fact
T en years from now I want to be working both in the U.S. and abroad, helping train home equity lenders and loan officers.
If I could time travel, I would go
back to the 1950s and watch the Rat
Monte Cristo, with James Caviezel
Pack perform live at the Sands Hotel
and Guy Pearce. >
For success I have sacrificed
mediocrity. I’ve learned there is only
was ride a motorcycle at 140 mph. I
>
The best purchase I’ve ever made
was my mountain bike. It has provided
My favorite vacation was in Belize
and Mexico. I love new cultures, food
>
The worst purchase I’ve ever made was a new car.
acts. Don’t mention my hair and ’80s outfits, please.
The best lesson I’ve ever learned
in Las Vegas.
When I was younger I wanted to be a police detective.
>
Every morning I ride my mountain
professionAl
get some exercise while commuting.
>
bike to and from work. Might as well
>
>
mortgage industry, I was a director of marketing for a nonprofit and a
When I was a kid, we left the house at sunrise, returned at sundown, got
restaurant sales representative, and
in plenty of trouble and lived to tell
I worked in the financial services
about it.
industry.
I’ll never forget to say “I love you”
>
to my friends and family each day.
of reverse mortgages by avoiding
“reverse mortgage” and understanding
that it’s better to tell the truth, even if it hurts. >
tool. >
In shaping appropriate regulation of the reverse mortgage industry, government officials need to
My favorite time of the day is
understand the law of unintended
hand.
would be well served to seek the
My iPod go-to is Spotify. I love the
lenders and leading industry
mornings, with a cup of coffee in my
>
how to use a HECM as a true financial
My parents taught me how to make a lot with a little, be accountable, and
freedom of finding anything I want without having to buy the track.
sional If I were a pr ofelds be at hlete, I wou . It a Mot oGP rider t o would be a dreamdrag have t he skil l t oar ound elbow and knee 100 c or ners at over mph.
cliché marketing, replacing the words
My first job was at Skipper’s Seafood, working as a waiter.
>
Reverse mortgage professionals
can best support the public image
Tomorrow is never guaranteed. >
Before I entered the reverse
consequences. Government officials detailed input of trade organizations, spokespersons prior to enacting new rules.
Industry growth is dependent upon a more sophisticated sales force, better branding and first impressions, and the continued need of unprepared preretirees. reversereview . com
8 TRR | 21
The Reverse Review August 2015
ORIGINATING
RR
ASSESS
RR
RR
Ego and the Bottom Line By Tabatha Addison
Mastering the human side of business In my 25-plus years of working with executives and their leadership teams, I am often asked, “What is your favorite session to deliver?” or “If you had to pick one thing that would be key to transform leaders and their organizations at all levels, what would it be?” My answer is: ego! Over a five-year period, Dave Marcum and Steve Smith, authors of the acclaimed book Egonomics, searched more than 2,000 news articles that used the word “ego” and surveyed thousands of people who attended their leadership sessions. In their surveys, they asked, “If the word ‘ego’ flashed in front of you, what is the first thing that you would you write down?” Ninetytwo percent of the first responses were negative. “Arrogant” was the first word mentioned by almost 5:1, followed by “self-centered,” “insecure,” “closeminded,” “defensive,” “conceited” and “condescending” (and that’s just if we keep the list clean). At a micro-level, business performance suffers when ego negatively impacts the way we produce. Dr. Paul Nutt of The Ohio State University conducted more than two decades of research with hundreds of organizations on why 50 percent of business decisions fail. He discovered three key reasons:
So if this is true, and you were offered a magic pill that would instantaneously remove your ego, would you take it? Some of you may be thinking, “absolutely,” while others may immediately say, “no, thank you.” And why is that? Well, just as there is the costly negative side to ego, there is also the positive side of ego. With those same surveyed audience members mentioned earlier, ego also had a positive meaning. The word “confidence” cited nearly 10:1. The positive side brings selfconfidence, self-esteem and ambition. So it begs the question, is ego a liability or an asset? Or is it both? Let’s explore that for a moment. If the irony about ego is that it is both a valuable asset and a deep liability, how do we prevent the negative side of ego from impacting our bottom line? How do we prevent our ego turning our strengths into weaknesses, or make us the traitor instead of the talent? The power of the negative side of ego is that it can take a strength like assertiveness and create the perception that you are pushy. It can turn intelligence into condescension, determination into stubbornness, and independence into detachment. STRENGTH
VALUE TO TEAM
EGO RISK TO TEAM
Confident
Decisive, courageous
Close-minded
Intelligent
Sees beyond obvious, takes creative leaps
Dismisses colleagues who disagree
* Nearly two-thirds of executives never
Action-oriented
Sets and achieves high goals
Impatient, resists change
* Eighty-one percent of managers push
Clear and candid in communication
Confronts brutal realities, eliminates guessing
Intimidates others, generates gossip
* More than one-third of all failed
business decisions are driven by ego. explore alternatives once they have made up their mind.
their decisions through by persuasion or edict, not by the value of their idea.
22 | TRR
ORIGINATING When an organization invests in us for our talents, it also inherits the potential counterfeits of those talents. We need to be consciously aware of where our natural talents lie so that they can be transformed into solid, legitimate strengths. Equally as important is to watch for the signs of ego implying that a talent or strength is about to become a weakness or impediment. When ego works against us, these four warning signs indicate we’re losing value: EARLY WARNING SIGN NO. 1: Being comparative Ironically, being too competitive makes us less competitive. By fixating on someone else, we give up our potential in the name of becoming “better than” or at least “as good as” someone else.
The bottom line: Often the most difficult side of business to master is the human side, and nothing is more human than ego. How we manage ego on the human side affects everything we do on the business side, one way or another. n
EARLY WARNING SIGN NO. 2: Being defensive There is a vital difference between defending an idea and being defensive. The motive behind defending an idea is to let the best argument win (even if it’s not yours). When we’re defensive, we defend our position as if we’re defending who we are. Don’t confuse your ideas with your identity. ORIGINATING
EARLY WARNING SIGN NO. 3: Showcasing brilliance Showcasing isn’t about making our brilliance visible; it’s about making it the center of attention. The more we want or expect people to recognize, appreciate or be in awe of how smart we are, the less they listen, even if we do have better ideas.
Be a part of the conversation.
-
Share your ideas with your colleagues and be a part of the solution. Reach out to us at info@reversereview.com.
MARKETING
EARLY WARNING SIGN NO. 4: Seeking acceptance When we’re reluctant to risk being candid rather than popular, conversations are artificial and reality goes under the table. That reluctance is a major reason why unsuccessful projects in companies don’t get killed as early or as often as they should.
LEGAL SPOTLIGHT
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8 TRR | 23
The Reverse Review August 2015
ORIGINATING
The True HECM Originator By Bob Tranchell
studied law at Soochow University in Shanghai, China. In his mid-50s, he studied mental health sciences at Hahnemann University in Philadelphia. With training in multiple disciplines, he was well-equipped to consider aging and finance. He has a list of honors and awards ranging from valedictorian at Shanghai High School in 1948 to recipient of the John S. Bickley Founder’s Award Gold Medal for Excellence from the International Society of Insurance in 2012.
Dr. Yung-Ping Chen and his dedication to home equity conversion I consider myself to be a HECM originator, but that title truly belongs to Dr. Yung-Ping Chen, whom one might call the architect of the HECM. Because of his efforts, we are able to offer this lifechanging product, perhaps unaware of the journey involved in bringing it into being. Dr. Chen presented his first talk on the idea of voluntarily converting net equity in the home into a lifelong flow of income with continuing occupancy of the house at an economics seminar in December 1963. In 1969, he testified before Congress on what he called the Actuarial Mortgage Plan. It was the first time Congress would hear testimony on
the concept, and it began an almost 20year quest for legislation that was finally written as Section 255 of the National Housing Act of 1987. I believe we owe a debt of gratitude to Dr. Chen, whose work inspired an important financial tool that would allow home equity conversion. This article is a tribute to a man whose intellect, research and compassion contributed greatly to establishing the HECM. It also outlines some of the lessons I have learned from him. Dr. Chen’s balanced education and research gave him a unique perspective into issues of aging and finance, and allowed him to shape his vision as to how an equity conversion mortgage should function. He received a B.A. in economics from National Taiwan University, and an M.A. and Ph.D. in economics from The University of Washington, Seattle. Before studying economics, he
View our digital version...
Reverse Review articles (present and past) are available on our website. Access a wealth of content about the business of HECMs online. www.reversereview.com 24 | TRR
His research began in the early 1960s. While studying income and wealth distributions among older adults, he became intrigued by the “income poor but house rich” phenomenon in the context of elder poverty. Incidents of poverty would be lower if poverty were measured using net worth rather than using income alone. For poverty measurement based on net worth to make practical sense, however, nonliquid assets such as a home must be sold. However, older homeowners were typically reluctant to sell their homes. It was in his work to resolve this dilemma that he hit upon the idea of a voluntary conversion of net equity into an income stream or spendable cash, while assuring lifetime occupancy in the home. Over the years, he researched and testified to what would become the HECM. I recently had the privilege of talking with and learning from Dr. Chen, which gave me a great appreciation for the man himself and also taught me some invaluable lessons.
ORIGINATING Three Lessons Learned
1
Opposition and Support
“In bio-medical terms, what we would like to see is more longevity with greater vitality, so that we may live longer with greater physical and mental [psychological] health. This is certainly a most desirable objective. However, there are other dimensions of life—the social and economic aspects— which we may compare to an ‘economic clock.’ We, likewise, would wish to slow down the ticking of that clock and make each tick sound stronger. As things stand now, our social and economic institutions have not, in my opinion, kept pace with the changes in the biomedical field. The significance of the socioeconomic aspects of the quality of life cannot be overemphasized. - Dr. Yung-Ping Chen I like the articulation of slowing down the economic clock and making each tick sound stronger. The call for researching the social and economic aspects of aging with the same clarity as biological aging is excellent. As an originator, I benefit from knowledge of the biological, social and economic aspects of aging. Expressing ideas like slowing the economic clock is a great way to communicate what a reverse might accomplish for my clients.
3
The Mortgage Insurance Perspective I asked Dr. Chen where the idea of government involvement came from. I noted that reverse mortgages were available before the FHA’s HECM came into being, and there were mortgage tools in France that were not government-backed. His response summarized a great way of looking at mortgage insurance: “The idea for the government to serve as an insurer seemed to me to be a logical expression of community solidarity to empower the individual and families to exercise individual responsibility.” I never heard anyone express the reason for and impact of mortgage insurance in that way. The government as an expression of community and mortgage insurance as an expression of solidarity, empowerment and responsibility are very unusual but very effective articulations. They resonated with me and gave me a different perspective on mortgage insurance premiums. Dr. Chen has spent a lifetime researching and teaching about issues of aging and the economics of aging. His work was a catalyst for and has had a profound impact on our industry. The conversations he and I have shared have been both encouraging and helpful in how I explain the effect a HECM can have. I am grateful to him for the years of testifying and research that have gone a long way to advance this important financial tool. Our conversations were enjoyable and increased my respect for him and for those who labored long before the HECM was available. Thank you, Dr. Yung-Ping Chen, for your years of dedication to older adults and their financial options. You taught me a great deal and I am a better originator for it. You, however, will always be the true originator. n reversereview . com
8 TRR | 25
SPOTLIGHT
In reading some of Chen’s papers and testimony, as well as conversations I have had with him, I was struck by the clarity he had from the start, and continue to be challenged by his desire to be balanced. I was impressed that he studied mental health sciences so that he could, as he put it, “learn about behavioral and mental health aspects of aging to complement my studies of the financial and economic dimensions of aging.” His presentation to the Senate
Committee on Labor and Public Welfare in 1971 called for a continued balanced approach to researching aging with an emphasis on social and economic issues. He discussed the advances made through biomedical research and felt the same attention would be beneficial in the economic and social aspects of aging.
LEGAL
A Balanced Approach
of aging and the economics of aging. His work was a catalyst for and has had a profound impact on our industry.
MARKETING
2
ACCORD ING TO BOB
Professor Chen has spent a lifetime researching and teaching about issues
ORIGINATING
From the start, Dr. Chen’s call for a home equity liquidation tool was met with opposition. His detractors were fellow professors and researchers, including some in a federal agency. The opposition ranged from comments like “the idea will never fly” to “the idea is unsound and it does not help the renters,” expressing sentiments that Chen says “represented a depth of dislike or disapproval that was palpable.” I relate those responses to what originators face today. I have spoken with older adults whose visceral reaction to a reverse mortgage was so strong they decided to face foreclosure rather than utilize the loan. I have sparred with financial planners whose dislike of the concept of a reverse made them unwilling to even listen to another side. I take encouragement from Dr. Chen’s methodical, consistent teaching and research that allowed him to stay the course and adequately articulate his position. He also emphasized that he took courage from support and even praise from other professors and researchers, including some in federal agencies. I believe we can all relate to the encouragement we feel when someone outside our industry is positive or validates the use of HECMs in retirement planning. We need more voices like Chen’s to help bring the HECM into prominence as a widely accepted mainstream product.
g
The Reverse Review August 2015
We treat our brokers like family...
877-721-3847
#nofilter #integrity #loyalty #diligence #compassion 26 | TRR
www.rfslends.com
NMLS #1025894
MARKETING
PROMOTE
Generating Reverse Mortgage Leads in a Post-FA World By Bryan Moore
How a direct mail campaign can work for you The elephant in the room just sat down. I refer, of course, to Financial Assessment and the sweeping changes that went into effect in our industry on April 27, 2015. ORIGINATING
These are positive changes. They create accountability within our industry and help ensure that the right people are being matched with the right loans. In the long term, these changes will benefit us all.
What should the industry do? Raise it with marketing.
This is a great question, and the answer isn’t as complicated as one might think.
The list can be a bit trickier. Again, how do you get a list of homeowners who not only need your product, but will also qualify for it?
Here are four simple tactics to employ in your direct marketing efforts that will help you find that balance:
1 Mail homeowners just turning 62. This is a milestone
birthday, just like turning 16 or 18. Now you qualify for all the benefits of a reverse mortgage!
2
ail homeowners who have not missed a mortgage M payment but may have paid their credit cards late. These homeowners may be in need of the money a reverse mortgage can provide, but would also qualify due to their history of on-time mortgage payments.
Failure to capture this segment is why most self-generated direct mail campaigns fail, especially for the reverse market. You can’t just pull a list of homeowners from county records within a few miles of your office, throw 500 postcards in the mail and expect it to work. First of all, you aren’t reaching the critical mass of volume you need to generate enough calls for the marketing to pencil out. Secondly, you aren’t mailing a targeted list. It’s like tossing a pebble into a crowd and hoping to hit a homeowner with equity, who is 62 or older, who needs a reverse mortgage and can qualify for one.
3 Mail homeowners to educate them on the history and
Employ the services of a direct marketing company that can get you a targeted list with a proven mail piece that can generate enough incoming calls for you to close a few reverse loans. There will be a cost up front, but ask yourself the following question: How much money am I willing to pay per loan in order to fill my pipeline with funded loans every month?
4
Then escort the elephant out of the room. n
benefits of a reverse mortgage and how it can be a strategic financial tool that can help them age in place. For example, let them know that President Reagan signed the HECM loan into law in 1988 and that you would like to be their trusted advisor to help determine if a reverse mortgage is right for them. ail homeowners who just went through a major life M event. People who experience a major life event, such as the passing of a loved one, are often in need of the financial help a reverse mortgage can provide.
reversereview . com
8 TRR | 27
SPOTLIGHT
There are two basic elements to a successful direct mail campaign: the offer and the list. The offer is perhaps the easier of the two to establish, as a HECM loan can provide many benefits to the borrower.
LEGAL
Specifically, increase your volume with direct mail marketing. I’ve spoken with many reverse clients who have asked me, “Bryan, how do we find the right balance of people who need our product and those who actually qualify for it?”
MARKETING
However, there is no denying that in the short term it has created challenges as the industry adapts. A drop in volume is inevitable.
The Reverse Review August 2015
LEGAL
LEARN
Probate 101 By Alexander J. Chaudhry
Property, including real estate, personal property and any other assets owned or controlled by the decedent at the time of their death, is referred to as the decedent’s estate. In some situations, the estate may consist of nothing more than personal items such as clothing, jewelry or a small checking account. In other instances, the estate will consist of the decedent’s interest in real estate and other assets that must be identified, valued and eventually transferred to the intended beneficiaries of the decedent’s estate. These and other tasks are accomplished through the probate process.
An overview of the probate process for reverse specialists It is quite common during the origination process to receive a title report showing a deceased former owner in the chain of title whose interests may not have been properly accounted for. The report may contain special requirements, exceptions and terminology concerning the former owner’s interests, which must be understood and satisfied in order to clear title. Some of the words and phrases used in the report may be unfamiliar to reverse professionals but are frequently used when there is a deceased owner in the title chain. Reverse originators who are familiar with and understand these concepts can better guide their senior citizen clients to the closing table. The purpose of this article is to provide reverse professionals with a general overview and basic understanding of the issues and terminology involved when faced with this type of situation. When a person dies, the deceased individual is called the “decedent” and the decedent is referred to as having died testate (with a will) or intestate (without a will). A will is a written document executed by a competent person that directs how, when and to whom his or her property will be distributed after their death.
The word probate comes from the Latin term “probare,” which means to prove. Probate refers to the action of submitting the decedent’s last will and testament to the proper court and “proving” with appropriate documentation and testimony from witnesses that the will was properly signed and witnessed, and constitutes the decedent’s last will and testament. The term is also used to refer in a broader sense to the process of qualifying a person before the court either as an executor named in a will or as an administrator if there is no will. Probate can also refer to the overall general process of administering the estate. “Personal representative” is a term used by the Uniform Probate Code to refer to the person who is responsible for
“The word probate comes from the Latin term ‘probare,’ which means to prove. Probate refers to the action of submitting the decedent’s last will and testament to the proper court and ‘proving’ with appropriate documentation and testimony from witnesses that the will was properly signed and witnessed, and constitutes the decedent’s last will and testament.” 28 | TRR
Probate Terminology Administrator
Intestate Succession
The person appointed by and qualified to administer the decedent’s estate when the decedent has no will
The order, as provided by state law, in which family members are in line to inherit property from a decedent who died without a will
Estate
Executor
Creditor
A person or organization owed money by the decedent
The procedure whereby a will is admitted to record; the process of qualifying a person as executor or administrator of an estate; and also refers to the entire process of administering a decedent’s estate
Qualification
The procedure whereby a person is appointed by the court to serve as executor or administrator of a decedent’s estate
Will Decedent
The deceased person
Intestate
A written document that directs how, when, and to whom the testator wants his or her property distributed after death
Dying without a will Testator Testate
Dying with a will
A person who makes a will
The personal representative is under a duty to pay any debts and claims owed by the decedent’s estate. Under applicable state law, the estate’s property is liable for the debts of the deceased owner and all heirs and distributes take any estate property subject to such debts. If claims are not paid, a creditor may be able to reach the decedent’s property in the hands of the heirs or distributes. In order to settle and pay claims against the estate, the personal representative publishes a notice in a local newspaper that informs creditors of the decedent’s death and the opening of the probate estate. State law sets the requirements of what the notice must contain and how it must be published. Creditors of the estate then file notice of their claims with the court. Applicable state statutes provide creditors with a specific time period in which to file their claims or they will be forever barred. The estate of the decedent, if of sufficient value, may also owe state inheritance and estate taxes and federal estate taxes. States impose a tax on the estate of the decedent or on the transfer of its assets to heirs. Each state has different tax schedules and exemptions. For instance, inheritances received by spouses or children are generally taxed at a lower rate or may be entirely exempt from taxation than those 8 reversereview . com
8 TRR | 29
SPOTLIGHT
The person(s) who inherit the decedent’s estate if the decedent died without a will determined by state law
Probate
LEGAL
Heirs/Heirs at Law
A term used to mean either the executor or the administrator of the decedent’s estate, as the context requires
The personal representative qualifies by taking an oath before the probate court. Once qualified, they have the authority to administer the decedent’s estate. The personal representative is then lawfully able to sign checks and other instruments such as deeds that transfer assets from the decedent’s name to the name of the intended beneficiary. The court will generally issue an order or “letters” to the personal representative that confirm the person has qualified as such and has the authority to act on behalf of the estate.
MARKETING
The person named in the decedent’s will to administer the decedent’s estate who qualifies before the court
Personal Representative
administering the decedent’s estate. If the decedent left a will, the personal representative is often named in the will and is also referred to as the executor. If the decedent did not leave a will, the person who administers the decedent’s estate is known as the administrator.
ORIGINATING
The decedent’s property, including real estate, personal property and any other assets owned or controlled by the decedent at the time of his or her death
LEGAL
The Reverse Review August 2015
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30 | TRR
LEGAL which the real estate is located should be consulted.
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SPOTLIGHT
Reverse professionals who are generally familiar with the probate process and the words and phrases used in the probate context can better help their clients address these issues. This article is only a summary and in some cases it may be necessary to research state law for specific local requirements. n
LEGAL
From a title examination perspective, the title report will want sufficient confirmation that the probate of the decedent’s estate has addressed all of the following issues: 1) who has title to the deceased owner’s interests; 2) whether the deceased owner’s creditors have been paid; and 3) whether there are any state or federal estate or inheritance tax concerns. Title is proved by probating the decedent’s will or by properly determining the decedent’s heirs according to applicable state law. Creditor concerns are addressed through the probate process and can also be eliminated by applicable state limitation periods. Estate taxes are addressed by showing that the decedent’s estate is exempt from tax because it does not meet certain threshold levels; or if applicable, by paying the tax and obtaining official receipts or waivers from the appropriate taxing authority.
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Most states have limitation rules that limit the time within which a will can be probated and claims of creditors can be filed. If no administration proceedings have been filed and the statutory limitation periods have run then it may be acceptable, depending on local custom and practice, to rely on affidavits to determine the decedent’s heirs. The affidavits, preferably from someone who is not interested in the estate, should contain facts setting forth sufficient information to enable one to determine by applying the applicable rules of descent and distribution who are the lawful heirs of the decedent. The affidavits are recorded among the county land records and serve to confirm that title has vested in decedent’s heirs at law as identified in the affidavits.
ORIGINATING
inheritances received from a brother, been proved to be the valid last will and sister or other individual. The United testament of the decedent. Only wills so States may also be entitled to receive a ordered and admitted by a court may be tax from the assets of a deceased person. treated as valid instruments passing title The right to this tax and a corresponding to real estate. A copy of a decedent’s will lien in favor of the United States is not enough to clear title. Rather, the attaches immediately will must have been upon the death of the proved and probated decedent, regardless of by a court to establish whether an actual lien its validity. Without “If the decedent died testate is recorded. the court order, the (with a will), probate is the formal will, by itself, will judicial proceeding used to prove Not all estates pay be insufficient to the validity of the decedent’s last taxes. Only estates will and testament. The property pass clear title to the whose combined gross of a decedent may pass to others property. in accordance with the directions assets meet certain left by the decedent in their will levels are required If the decedent did admitted to probate.” to file returns. For not leave a valid last instance, a federal will and testament estate tax return is then the decedent required for estates is said to have died with combined gross assets exceeding intestate and the laws of the state of $5,430,000.00 for a decedent dying domicile for the decedent will determine in 2015. The value of the decedent’s who receives his or her property. When estate will consist of more than just the there is no will, the decedent’s property decedent’s real estate. The gross estate passes to family members under a plan consists of the value of all property set out by the laws of each state. These (real or personal, tangible or intangible) laws vary considerably from state to owned by a decedent or in which the state, and which law applies generally decedent had an interest at the time depends upon where the decedent had of death such as cash and securities, his or her legal residence at the time of insurance, trusts, annuities, business death. interests or other assets. If applicable, Probate of an intestate decedent is federal estate taxes are a lien for 10 years the judicial procedure designed to from the decedent’s date of death. identify the decedent’s heirs according If the decedent died testate (with a to applicable state intestate succession will), probate is the formal judicial laws. In some states, if a person dies proceeding used to prove the validity of intestate but is survived by a spouse, the decedent’s last will and testament. the surviving spouse may be entitled The property of a decedent may to the entire estate unless the decedent pass to others in accordance with the had any children who are not also the directions left by the decedent in their children (by birth or adoption) of the will admitted to probate. The person surviving spouse. If the decedent had who intends to qualify as the personal children from a prior marriage, the representative of the decedent’s estate spouse and surviving children divide takes the original will and a certified the estate. If the decedent was not death certificate to the court that has survived by any spouse or children, jurisdiction over the will. The court the decedent’s surviving parents may will examine the provisions of the inherit the property. If no parents are will and the circumstances under living then the chain of relations in line which it was signed. If it appears to inherit the estate grows more distant from affidavits attached to the will or and includes brothers and sisters, from the testimony of witnesses that nieces and nephews and grandparents. the decedent signed the will under If there are no descendants then the the proper circumstances, the will is property may pass to the state where admitted to probate, or “probated.” The it is located. Intestate succession laws court will enter an order that establishes vary considerably from state to state the validity of the will and that it has and therefore the laws of the state in
The Reverse Review August 2015
SPOTLIGHT
Tools for the Successful Loan Originator IS TH
M O NT
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WE TAKE A LOOK AT ONLINE RESOURCES FOR LOAN OFFICERS.
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BY MI C H AEL J . WELT MAN
08 / 2015
WANT TO SEE MORE ARTICLES LIKE THIS?
See them at reversereview.com.
T
oday’s loan originators are in the car, on the road, in the living room and sometimes in the office too, using 21st-century tools our predecessors in the business could have never imagined. In my office, I am surrounded by technology. I stare into three computer monitors, all oversized 32-inch displays, with several printers, a scanner and a fax machine stationed nearby. In addition to all that hardware, I still need software and tools that are Web-based, app-accessible and built for the many different challenges I encounter in this sales and networking business. When it comes to reverse mortgage loan origination, there are several tools that I think can help professionals stay on top of their game. Here’s a rundown of services I have found to be extremely helpful: SendOutCards.com // Its motto is “changing lives… one card at a time.” While this might be an ambitious statement, I have found the site’s services to be very helpful. It is my card-sending program of choice. I enter the contact information of all my clients, friends and family members into the site’s digital address book so that I can easily send a greeting card or postcard for holidays, birthdays or loan anniversaries, or send a thank-you note for a referral. It’s a great way to keep in 32 | TRR
touch with contacts without the hassle—no need to buy stamps or envelopes. You simply pick out your card, type what you want to say, and click to send. I have found that my senior clients love personalized cards, and sendoutcards.com makes this task super easy through their website and their app. Stamps.com // While sendoutcards. com will take care of mailing cards for you, sometimes quotes and informational literature have to be mailed from your office. At stamps.com, you can get an account for a $15 monthly fee, label paper at the local store, and with a scale provided by stamps.com for a fee. With all of this, you can set up your own mailing, postage and shipping center from your office. Then you just walk it out to your mailbox and put up the flag. Now that’s easy, and you saved yourself the cost of gas and a wait in line at the post office. Zillow.com // Zillow is an excellent resource when consulting with a client who is unsure of the estimated value of their home. You can log on to its app on your iPad, smartphone or tablet to view real estate listings in a specific area and learn more about home prices in a key market. Zillow recently
SPOTLIGHT
BusinessEtouchCRM.com // Before my employer provided me with an online contact management system, I built my own system, one that was Web-based and could be accessed on my tablet or on my desktop using BETCRM, as I like to call it. I kept two database accounts: one for recruiting and one for prospects. You can build the system any way you like and it has many features, like e-marketing, Web conferencing, calendars, click-to-call and mail merge. This type of program is an essential tool for any 21st-century sales organization. There are many ways to communicate and track your progress with prospects and recruits. There are many good reasons to utilize a system like this, but one of them is the transient nature of the professionals in our industry. I have been in this business for 14 years, and like many of my colleagues, I have worked for more than one company. With BETCRM, I have one place where I can save the contact info for all my customers, partners and friends for future communication, no matter what company I work for during the span of my career.
LinkedIn.com // Most of you are familiar with LinkedIn, and I’m sure many of you use its free service. For a small fee, it also offers a higher level of service that’s designed for intense recruiting or networking efforts. It’s Facebook for business. Using its platform, you can build a Web-based business network and communicate with it through regular posts to your LinkedIn page or to the group pages of other networks you belong to, like The Reverse Review’s member page.
ConstantContact.com // This is an email marketing software service. I found constantcontact.com many years ago and I attended some of its training classes in my area. Now they are a very large national company, with TV commercials advertising their services. Some of my civic organizations, like MBA, use constantcontact.com to promote events and keep in touch with
Xinnix.com // Xinnix.com, the Mortgage Academy, is a Georgia-based institution that teaches mortgage-related courses online. With classes on loan origination that are up-to-date with the latest policy changes, Xinnix can help take you to the next level of loan production.
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SalesForce.com // This is another great CRM provider that allows users to organize their contacts and communications. Salesforce.com is well known for its streamlined platform and user-friendly applications, and many large mortgage companies and top-producing brokers utilize its services.
TrainingPro.com // When I transitioned from a traditional banking to a mortgage lender, I found TrainingPro to get the education and testing preparation I needed to get my state and national license. Now, I use it to update my continuing education requirements annually. It’s a great system with informative online training sessions.
LEGAL
Infofree.com // Frustrated by salesgenie. com, I discovered infofree.com and never looked back. For a small monthly fee, this site assists me in finding clients to serve by providing prospect lists that are scrubbed for DNC (do not call) registrants and come with details about home values and age. I use this list to send mailings about educational seminars and hit the phones to connect personally with appealing prospects.
Dropbox.com // Its motto is “your stuff, anywhere,” and its usefulness cannot be understated. One of the challenges of working on multiple computers, multiple platforms and using multiple tech tools for email, work docs, reports and contact lists is that you have to remember where your documents are—which computer, what folder, etc. Dropbox.com is your hard drive in the sky. You can stop filing on your computer’s hard drive and start filing to your Web-based Dropbox so you will never have to look for a misplaced document again. And if your computer crashes, everything saved to your Dropbox folder will be safe and secure, easily downloadable from any computer, anywhere.
MARKETING
their membership. I use it to keep in touch with my referral base of like-minded senior service providers, from elder law attorneys to insurance agents to Realtors. Using this service, I send a quarterly newsletter to stay in contact with my peeps on the topic of reverse mortgages and more.
ORIGINATING
acquired Trulia, so now users can find a local Realtor when researching a property. You too can be part of this for a small fee, but don’t forget to contact the Realtors on Zillow when you see them to be sure they know who you are and what you do. I call this “reverse Zillowing.”
The Reverse Review August 2015
IN 2007, JUST BEFORE THE HOUSING BUBBLE BURST, THE CENTER FOR RETIREMENT RESEARCH AT BOSTON COLLEGE CONDUCTED A STUDY ON RETIREMENT PREPAREDNESS AND HOME EQUITY USE. WHEN ASKED IF THEY PLANNED TO UTILIZE THEIR HOME EQUITY TO FINANCE LIVING EXPENSES IN RETIREMENT, 72 PERCENT OF THE 2,600-PLUS RESPONDENTS SAID NO. 34 | TRR
But, as the center’s study went on to explore, for most Americans, their home is their greatest asset, one that many will not be able to ignore. The study revealed that people were holding on to a belief common among older generations: that the house was a sacred entity not to be touched, a protection against the worst-case scenario or a gift to bequeath to their children. Even then, pre-recession, the center concluded that this perspective is likely to wane as economic realities hit home. The fact is that Americans are living longer, approaching a long retirement without pension plans, with nominal Social Security benefits, and little in the way of savings. Many will need to consider the use of their greatest asset. “While most retired households do not currently tap equity, this approach may be a luxury that future retirees will not be able to afford,” the center’s brief states. “As the baby boomers retire and the retirement income system contracts, housing equity is likely to become an increasingly important source of support.”
Home equity is the market value of a property minus any outstanding liens.
Home Equity
Typically, one’s equity builds over time, increasing as mortgage payments are made and as the property’s market value appreciates.
Chris Mayer, a professor at Columbia Business School and the CEO of Longbridge Financial, says this trend is inevitable because of the severe economic realities facing today’s retirees. “There is a really, really large gap between retirement assets and retirement liabilities,” he says, pointing to data that suggests an $11 trillion gap between the available assets and overall needs. Down the road, he says, home equity might be able to offer as much as $6 trillion to fill in the gap. Right now, homeowners aged 65-plus have just under $4 trillion in aggregate home equity, according the NRMLA/Riskspan home equity index. “It still doesn’t solve the entire problem,” Mayer says. “There are lots of parts to this, but I think any solution that deals with the retirement crisis is going to have to involve home equity.” Amy Ford, director of home equity initiatives at the National Council on Aging, says homeownership rates and a notable sense of economic insecurity among older Americans will contribute to the need for many to access their equity.
Toss in a devastating economic recession and fast-forward six years, and the financial deficit confronting many of America’s retirees is more pronounced than ever.
Reality Hits Home Highlighting the realities of a postrecession world, a 2013 survey from Ameriprise Financial paints a different picture. Nearly half of the survey’s 1,000 respondents said they expect to use home equity to fund retirement. The tides have started to turn.
Ford points to recent Census data that states 80 percent of Americans 65 and older are homeowners. Juxtapose this, she says, with NCOA’s own survey results, which reveal that 60 percent of older adults are economically insecure. “Considering these two factors, I do think people will be looking at equity in creative ways.” Shelley Giordano of the Funding Longevity Task Force agrees. “There are several economic realities out
there that today’s retirees are having to confront,” she says, adding that use of their home’s equity is one of them. “As people age and they are tapping into their other assets, the ratio of their housing wealth [to their other assets] generally increases,” she says. “The body of research out there is taking a look at how that asset can be used or incorporated in the overall wealth picture.”
Accessing Your Equity There are several ways homeowners can tap into their equity and all of them vary in their terms for disbursement and repayment; requirements for age, income and credit status; and tax benefits.
A traditional home equity loan, often referred to as a second mortgage, may be the most utilized method to convert one’s equity into cash. This fixed-rate loan allows homeowners, regardless of their age, to borrow a lump sum up to CHRIS $100,000 provided they MAYER have at least 20 percent equity in their home, which “Just because they must repay over a set people say that period of time in monthly homeowners installments. should do it does not mean they will. It requires institutional reforms, it requires industry reforms, and it really requires more brand-name institutions using HECMs and being associated with HECMs and home equity over time to create the credibility that the product and the industry need.”
A home equity line of credit, or HELOC, is another common tool that allows homeowners to access their equity. With a HELOC, borrowers can draw funds from a line of credit as needed, making minimum interest payments and eventually paying back the loan in full. While these types of loans may be useful for 8 reversereview . com
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The Reverse Review August 2015
home equity
homeowners who have a steady income that would enable them to repay the loan balance, they do not provide a great solution for older Americans whose resources will decline as they enter retirement. For those seeking a long-term solution to a problem that will escalate as they exit the workforce, a HECM can provide a smart solution.
TH E VA L U E OF YOU R H OU SE L ESS A N Y MORTGAGE - IS YOUR L ARGEST STORE OF WEA LTH
M e di a n h o m e e q u i t y a n d f i n a n c i a l a s s e t s , t wo -p e r s o n h o u s eh o l ds
Mayer says he has long considered HECMs to be a critical tool that could help many older Americans fill their income gap. He wrote his first piece about reverse mortgages in 1994, when he was an economist at the Federal Reserve. “It was clear to me and clear to many economists even at the time that home equity was something that was a vastly underutilized asset,” he says. The HECM also has a line of credit option, which some financial experts have praised as a smart tool that can help borrowers leverage their equity to hedge against dips in the market. Giordano says establishing a HECM line of credit gives borrowers tremendous flexibility. “Instead of pulling from your portfolio and locking in your losses in a bad market, you can use a reverse
$115k
$125k
A standard HECM can offer qualified homeowners over age 62 access to a portion of their equity without the burden of repayment. The homeowner retains title to the home and is obligated to make tax and insurance payments and keep the home in good repair. Perhaps most importantly, the loan doesn’t need to be repaid until the borrower moves, sells or passes away. “That’s the critical difference, of course,” says Ford. “It can provide a level of security if one wants to remain in their home, if they keep up all the obligations of the HECM, which is an important part.”
$160k
$150k
Age 65-74
S URV EY
By the numbers
FIN AN C IAL A SSETS
Age 85+ H OME EQU ITY
-Center for Retirement Research at Boston College
mortgage instead, and when your other assets rebound, you can take down your line of credit, if you want to.”
20 years from now, you’re still getting that growth in the line of credit—it’s automatic and insured by FHA.”
Giordano says older homeowners would be wise to consider the strategic use of a HECM line of credit. “When people move into retirement, they should be looking at their housing wealth as an important component. Not that they have to use it, but if they at least set up a standby line of credit, they’ve diversified that asset.”
Giordano says finding a lender who will offer credit for closing in exchange for over-par pricing or premium pricing helps reduce the cost associated with taking the loan. (She notes, however, that not all lenders will do this.) With lender credits, she explains, the client will accept a higher interest rate and get less initial credit availability, but would be able to establish a line of credit at an extremely low rate.
“What everyone in America is trying to achieve is retirement income security, and how does housing wealth fit into that? We have all these researchers saying, wait a minute, we have this giant undiversified asset sitting out there, what could its role be? When they look at the HECM line of credit and compare it to the HELOC, they find that a HELOC can be canceled, just when people need the money most, when the market is going haywire,” she says. “Compare that with a HECM and you have a guaranteed credit availability as a contractual obligation. So that means regardless of what the property values are doing in your neighborhood
47%
37%
of those employed said they were relying on the equity in their homes
said they were not on track to pay off their mortgage before they retire
-Ameriprise Financial’s Retirement Check-In survey 36 | TRR
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Age 75-84
A survey of American homeowners ages 50 to 70 revealed that:
%
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“You want to coordinate its use in a conservative and prudent manner with your other assets—not that one is better than the other necessarily, it’s just circumstances in any particular year during your retirement could dictate to you which asset you should be using.”
Overcoming Obstacles Despite research suggesting that HECMs could be strategically employed to ensure financial security in retirement, the general public remains reluctant. For some, there are emotional barriers at play that give them a sense of unease about extracting their equity. “There’s an emotional attachment for some people to the home they raised their kids in,” Mayer says. “But for many people, I think it’s even more basic, which is where they’re going to live,” he says. “I think this emotion about using home equity is really driven by this concern that if you use your home equity, there’s some risk you’re
going to lose your home, and if you lose your home, where are you going to live?” Of course, the desire to leave one’s home to their children is another barrier that prevents some from utilizing their equity. “Many people don’t have a lot of savings, so their home is the biggest thing they could imagine giving to their kids,” Mayer says. “Interestingly, when you survey the kids, they say they don’t want the home, and even more so they want their parents to use their assets to take care of themselves.”
SHELLEY GIORDANO “When people move into retirement, they should be looking at their housing wealth as an important component. Not that they have to use it, but if they at least set up a standby line of credit, they’ve diversified that asset.”
When it comes to the HECM, others may be hesitant because of concerns about the safety of the product and misconceptions about how it works. Even financial advisors are hesitant to recommend a HECM to clients. Mayer says he thinks planners recognize the value of the product, but have practical problems with suggesting its use.
“When I talk to financial planners—and I talk to a lot of them these days—I don’t
hear them say, ‘This is a bad product’ or ‘This is a bad idea.’ What I hear them say is more specific. The first is ‘Am I going to get in trouble for doing this? If I recommend a reverse mortgage are there regulatory concerns or other problems that are going to [create problems]?’ The second thing I hear is, ‘Well, it makes sense from my perspective, but when I send it to my clients, they are going to have a bad reaction,’” Mayer says. “I hear them nervous about how to implement it. They don’t understand the product well.”
While many are hopeful that recent policy changes and an industry-wide education campaign will help turn things around, changing people’s perceptions will take time. Mayer says the involvement of larger institutions would do a lot to bolster the product. “Just because people say
that homeowners should do it does not mean they will. It requires institutional reforms, it requires industry reforms, and it really requires more brand-name institutions using HECMs and being associated with HECMs and home equity over time to create the credibility that the product and the industry need.” For proponents of the HECM, it’s just a matter of time before people start to consider their home in their overall retirement plan. “This is the first generation that is trying to figure out this retirement funding to get them through what could be a really long retirement period,” Giordano says, adding that home equity is bound to play a key role. “It’s just another asset to be judged against the other assets… For most people, it’s an increasingly important component of their overall wealth, and the body of research out there is demonstrating that the prudent use of housing wealth can protect other assets.” n
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The Reverse Review August 2015
LAST WORD
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THINK
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It’s Getting Hot Out Here! By Michael D. Kent
Now, we all have our opinions of the various regulatory agencies and their oversight rules as they apply to our industry. Some people agree and others don’t. As with all things regulatory and political, you also have your fringe folks. However, I think we can all agree that in the world of regulatory oversight, it is getting very hot out here! I have read Director Cordray’s comments several times. What I have come away with is it does not really matter if I believe they are accurate or not; what matters is that I adapt to my new environment.
Recent criticism of industry advertising may encourage lenders to adapt to a new climate. It has been about two months since I began my position as president of Liberty Home Equity Solutions, Inc. in Rancho Cordova, California, just outside of Sacramento, and I have learned one thing for sure: It is hot out here! Coming from the San Francisco Bay Area, I had been lulled into believing the beautiful temperatures I enjoy during the summer were somehow consistent throughout California. I now know just how naive I have been. Sacramento is a beautiful city with so much to do. The surrounding areas offer a great deal of outdoor and recreational activities that I have come to expect from living in California. However, I have also learned I need to adapt my lifestyle to adjust to the significantly higher summer temperatures. I now take my daily run very early, usually around 5:30 a.m., before the temperature really begins to rise. I have also forced myself to learn how to operate my programmable thermostat at home, so I can set the AC to come on an hour before I arrive at night. I have made other adjustments, so I can better navigate this new environment. A few weeks ago, the director of the CFPB, Richard Cordray, issued a commentary on the marketing and advertising practices of the reverse mortgage industry. Much of his commentary was not exactly complimentary. The bureau’s claim was that, after extensive review and interviews with senior Americans, the industry’s approach to advertising and marketing the reverse mortgage product needs work. In fact, the bureau claims that seniors’ comments from interviews lead them to believe the advertising was confusing and incomplete when it came to describing the reverse mortgage product. Director Cordray also said that certain ads were misleading seniors. 38 | TRR
Adapting may include changing. I am not yet certain of what that change may involve, but I do know there are questions that need to be asked and answered: }
Do our ads clearly inform potential borrowers of program requirements?
}
Do our ads clearly and accurately describe the reverse mortgage program?
}
Do our ads inadvertently mislead potential borrowers?
}
Do our ads represent our company’s core values?
In addition to these questions is the always present question: Can we do better? While the reactions to Director Cordray’s comments have been both positive and negative, for me the most important takeaway is best represented by a quote from Charles Darwin: “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.” n
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Reverse Loans. One Platform. All Connected. The Reverse Review August 2015
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Now is the time for HECMs. Over 25 million potential borrowers are waiting Financial Assessment (FA) strengthens loan quality HECMs can be used to purchase a new home HECMs are FHA-insured loan programs Financial Planners recognize HECMs as a viable retirement option 40 | TRR
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