The hippocampus (which isn’t remotely related to a hippopotamus) is the part of the cerebral cortex that has to do with memory.
Continue readingPlanning for Transition
Your reverse mortgage clients and prospects have made many transitions throughout their lives, and chances are, most of them were well thought out and planned in advance:
Continue readingThe Plateau Effect
Clearly, multitasking is overrated, as the authors of a powerful new book, “The Plateau Effect: Getting from Stuck to Success”.
Continue readingElder Advocacy
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Continue readingBREAKING: New PLF Tables Published
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When HUD released their expected changes to the Home Equity Conversion Mortgage Program (Mortgage Letter 2013-27), or the federally insured reverse mortgage many asked “Where are the new lending ratios?”. Well the new Principal Limit Factors are here (download PLF Factor Table here).
Important Points to Ponder:
- Many expected (myself included) that HUD would split the difference in lending ratios between the Standard and Saver. That is not the case. HUD has basically given us a Saver with a graduated upfront Mortgage Insurance Premium based on the percentage of available funds used in the first year. Basically the new Stand-Alone HECM gives 15% less than the standard across all ages and .6% – 8.2% than the Saver based on age.
- **High Interest Rates spell trouble above 10%. This has been the case since the October 2010 PLF table update but is a little known fact. HUD says that it is not financially feasible to offer HECMs if interest rates reached 10% or higher and reiterates this point in their latest PLF Factor Tables.
- The product is still viable for those working with financial professionals. While the Saver will cease, it’s introduction opened up the door of using the HECM as a legitimate planning tool. Despite higher upfront MIP charged for those only seeking a line of credit the costs are still negligible and the lending ratios still support a robust line of credit.
No Regrets
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Continue readingAvoiding Ostrich Syndrome
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Continue readingAre You Disruptive?
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Continue readingHECM & the Differently Abled
As an experienced loan officer, you understand the nature of aging and support your senior prospects and client. But what happens when circumstances irreversibly change?
Continue readingElders Are Hot — But That Can Hurt
Yes, elder power is hot these days: as the Boomers gray, marketers of every stripe view this rising tide as a business bonanza. And while senior buying power may be hot, if seniors themselves are feeling the heat, they could be in trouble.
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