Download your March 2016 Top 100 Retail HECM Lenders Report Here.
This report was compiled from data courtesy of Reverse Market Insight.
March Top 100 HECM Lenders Report
Tax Deductions & Reverse Mortgages
HECM Mortgage Interest Deductions Complexities
It’s a discussion you rarely overhear among reverse mortgage professionals, the tax deduction of interest charged in a home equity conversion mortgage. Perhaps it’s because such scenarios are not typical or it is the inherit complexities of tax law with a unique mortgage instrument.
Well known industry pundit and financial professional Wade Pfau addressed the tax complexities of reverse mortgages in his March 10th column in Forbe’s Retirement. First proceeds from a reverse mortgage are typically not counted as taxable income. A notable advantage for those seeking other sources of cash flow without incurring the typical tax burdens associated with withdrawals from retirement savings and investment accounts such as 401(k)s, IRAs and event annuities. Higher net worth individuals may employ such a strategy to avoid slipping into a higher tax bracket.
While more affluent individuals may find advantages in this strategy lower income individuals…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
VP of National Association of Appraisers Joins Landmark Network as Chief Appraiser
Van Nuys, CA, March 14, 2016 –
Landmark Network, Inc., a leading provider of valuation management services and technology for lenders and brokers, announced the addition of John Dingeman to their team as Chief Appraiser. In his role, Mr. Dingeman will be responsible for all planning, organization, and supervision over appraisal quality control functions.
“I am extremely honored and fortunate to have this opportunity; an opportunity to join a team of like-minded, dedicated and driven individuals who are interested in serving our clients, valued panel appraisers and especially the consumer. Together we will work towards our continued success and escalate our status as the preferred Appraisal Management Company for all lenders and a trusted partner for all appraiser vendors.”
-John Dingeman
Mr. Dingeman is a California, Arizona and Nevada Certified Residential Appraiser and registered Property Tax Agent in Arizona. He also serves as the Past President and Lobbyist for the Coalition of Arizona Appraisers (CoAA), and is the current Vice-President of the National Association of Appraisers (NAA). He has extensive experience in the appraisal of single-family residential dwellings, small income producing properties, and vacant land. He is also an FHA appraiser and specializes in HUD/REO properties. Mr. Dingeman has assisted in the development of continuing education course materials approved by the Arizona Board of Appraisal and is a faculty member and continuing education instructor for the Columbia Institute.
“We’re excited to have John join the Landmark team. He brings a solid reputation and years of appraisal industry experience to the position and we look forward to him strengthening both our client and vendor relationships.” – Hunter Gorog, President & COO
About Landmark Network:
Landmark Network is a Los Angeles-based appraisal management company that offers a full range of national valuation and technology solutions. With a branch office in New Jersey and an east coast operations center in Maine, Landmark stands apart by paying premium rates and selecting appraisers based on the specifics of each assignment. Landmark included on Inc. Magazine’s Fastest Growing Companies for 3 out of the last 5 years; and was named a top Service Provider by Mortgage Executive Magazine.
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For inquiries:
| Erik Richard | CEO | erichard@landmarknetwork.com | 888.272.1214×704 |
| Hunter Gorog | President & COO | hgorog@landmarknetwork.com | 888.272.1214×706 |
Why Saying ‘Yes’ is Hurting Your Business
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No May Be the Best Thing to Say…
We are in the people business. The business of selling, educating and assisting older homeowners get a reverse mortgage. As salespeople we love not only to hear the word “yes” but we love to tell our customers the same.
Wouldn’t it be wonderful if every age-eligible homeowner qualified for a reverse mortgage? How about most? The advent of the financial assessment and other changes to the HECM program have collectively changed many of our yeses into maybes. Here are some reasons saying yes is hurting your business.
1. Resources. If you are still primarily attracting the needs-based borrower with few assets, a high mortgage balance and a checkered credit history you may want to help but you may be only hurting yourself and other potential borrowers. Time is one of the most valuable resources you have and if you spend it trying to qualify borrowers who are problematic you have robbed yourself of the opportunity to help qualified homeowners. Consider the time, the cost to your company to process and underwrite. It’s not about discriminating but marketing to the most likely borrower to qualify.
2. Credibility. Nothing stings more for applicants than being denied. Lest we forget, applying for a reverse mortgage is an emotional process. Be careful what…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
How HECMs May Help Avoid Medicare Surcharges
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More Affluent Retirees May Find HECMs a Money Saver
It appears that the potential strategic applications of the Home Equity Conversion Mortgage in retirement are as limitless and creative as the professionals who embrace the product. Case and point: using a reverse mortgage to avoid Medicare high-income surcharges.
A recent article in Investment News by Katy Votava brings to light an interesting twist for higher-income individuals. Why would those with considerable income and assets even consider a reverse mortgage? Beyond the flexibility of using the HECM line of credit to prolong their portfolio is the advantage of possibly eliminating costly Medicare high-income surcharges. That’s correct, if Uncle Sam determines you earn too much you get to pay more for your Medicare part B and D coverage and premiums with no additional benefits. The scale used to determine the income thresholds was recently modified lowering the top three tiers.
The surcharges uses the modified adjusted income or MAGI from the tax refund filed two years prior. This means that 2018 premium surcharges will be based on…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
AAG Unveils New Commercial
American Advisors Group’s Newest Television Commercial Features Noted Academics
Orange, Calif. (February 10, 2016) – American Advisors Group (AAG), the leading reverse mortgage lender in the nation, today announced the launch of its new television commercial. The 120-second spot, depicting reverse mortgage as a viable retirement planning tool, is airing now and scheduled to run over the next quarter.
The spot features noted academics David W. Johnson, Ph.D., associate professor of finance at Maryville University, and Barbara Howard, MBA, finance; MA, gerontology and adjunct professor at University of Bridgeport. The two professors emphasize the importance of a reverse mortgage loan as a flexible financial solution during a time when traditional sources of retirement income may not provide enough financial stability for today’s retirees.
The commercial debuts as academics garner mainstream media coverage about a national crisis faced by older Americans—about two-thirds of seniors are not financially prepared for retirement. Financial experts are encouraging homeowners age 62 and older to consider converting their home equity as a means to help fund ongoing expenses, including medical costs and long-term care. The spot also highlights a reverse mortgage standby line of credit available for homeowners to use when they need it most.
“The new AAG commercial sheds light on how reverse mortgage loans are becoming widely accepted by academics and experts as a versatile financial solution to help seniors achieve retirement security,” AAG Chief Creative Officer Teague McGrath explains. He continues, “At AAG our mission is to help educate consumers on the advantages of this powerful tool, and the experts’ confidence in the product provides valuable third-party credibility.”
This is the first new commercial to be produced following the death of AAG national spokesperson Fred Thompson in November of 2015. The ad serves as a starting point for the company’s larger, multi-faceted marketing approach that will feature a complete refresh of AAG’s creative materials later in the year.
The ad will run across cable and national networks, including ABC, NBC and CBS. It can also be viewed here.
About American Advisors Group
American Advisors Group (AAG) is the nation’s leader in reverse mortgage lending. We are dedicated to helping American seniors convert a portion of their home equity, a largely untapped asset, to help fund their retirement needs.
AAG holds an A+ rating by the Better Business Bureau, has a 96 percent customer satisfaction rating and is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about American Advisors Group and reverse mortgages, please visit the company’s website at www.aag.com, on Facebook at https://www.facebook.com/AAGreverse and on Twitter at https://twitter.com/AAGreverse.
Stock Market Losses & Reverse Mortgages
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Retriees Ignoring Home Equity May Pay Dearly in a Down Market
Unless your television has been turned off for the last week you have seen the stock market’s plunge due to China’s currency crisis and crude oil prices. With more advisors embracing the strategic use of a HECM to prolong investment portfolios and more retirees taking a do it yourself approach to retirement reverse mortgages are positioned more than ever before to provide a timely solution.
Last September an article in the Wall Street Journal articulated how HECMs can be used to buffer against market swings and sequence risk. For those relying heavily on stocks and equities as a source of income the sequence of their withdrawals can have long-lasting effects, especially when one sells investments during a market downturn. Pfau and other notable financial professionals have championed the benefits the HECM’s line of credit in a standby reverse mortgage strategy, drawing from the credit line when portfolios have lost value rather than selling stocks for a loss in a down market.
Beyond the role advisors play in shaping retirement strategies more retirees are taking a hands on do-it-yourself strategy to…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
Reverse Focus Helps New Zealand’s Heartland Bank Excel in Reverse
U.S. Consulting Company Reverse Focus Helps New Zealand’s Heartland Bank Excel in the Reverse Mortgage Industry
Redding, Ca – In April of 2014 Heartland Bank acquired Seniors Money International Limited offering seniors in New Zealand and Australia Home Equity Release Loans, known stateside as reverse mortgages. Heartland Bank needed to increase production streamline sales and operational process so they turned to mortgage lending industry consultant, Reverse Focus, for help.
“The changes implemented by Reverse Focus have had a substantial positive impact on the way that we do business. I appreciate the experience and insight they bring to the relationship and I’ve enjoyed working with their team,” said Chris Flood, HOB (Head of Banking) at Heartland Bank. “Our Home Equity Release Loan business is growing, and we certainly have Reverse Focus to thank for that.”
Reverse Focus already had a strong track record both within the United States and internationally helping reverse mortgage lenders succeed, by offering tools such as their industry leading CRM, Sales Engine, along with training, technology, and consulting strategies, designed specifically for reverse mortgage professionals.
“The challenges Heartland Bank faced in New Zealand were the same challenges we witnessed here [in the United States] during the early days of the reverse mortgage lending industry. Lenders wanted to get into the market, but the unique nature of reverse mortgage lending presented challenges that called for creative solutions,” said Eric Hiatt, CEO of Reverse Focus. “We’d previously built relationships with other banks in Canada, Ireland and Hong Kong, and knew we could help Heartland Bank.”
Reverse Focus’ team lead by industry veteran Rhiannon Behnke (Reverse Focus’ SVP in charge of consulting) visited branches in Auckland, Tauranga and Christchurch and met with Heartland’s leadership to analyze the bank’s existing reverse mortgage operations. Once analysis was complete, the team recommended strategies to increase productivity, efficiencies and lead conversions; and helped implement new sales systems, operational workflows, reporting tools and benchmarks to establish performance metrics, both within the call center and within the bank’s operational infrastructure.
The process and initial conversion to the new system took under twelve months to complete. Since implementation, Heartland Bank has seen a consistent month over month increase in their production.
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About Reverse Focus:
Reverse Focus is a technology and consulting company, comprised of reverse mortgage veterans that help lenders achieve success. With over 70 years of combined experience working in all aspects of the industry from marketing and origination to secondary and servicing, Reverse Focus’ team offers a one-stop source for industry knowledge, operational systems, marketing and sales strategies, and tools such as Sales Engine, their customer relationship manager (CRM) software designed specifically for reverse mortgage professionals.
For more information about Reverse Focus, please visit: www.ReverseFocus.com
Be Like Water
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Be like water. This was the advice given by the late martial arts master Bruce Lee. Strange? Think again. Water flows around obstacles and rocks, finds its way through the smallest opportune cracks and eventually wears down the hardest substances. Bruce Lee explained his philosophy in that water conforms and becomes like the object around it or that contains it such as water adapts to the shape of the glass it is poured into.
The rapid pace of change in the reverse mortgage industry has left many professionals feeling like they are engaged in martial arts combat. What we can borrow from Bruce’s philosophy is the need for adaptation, improvisation and flexibility. Here’s one business example. Blockbuster video refused to move toward online video rentals and suffered the consequences with store closures and bankruptcy as Netflix gained traction. Let’s look at some practical ways we can incorporate this philosophy into our daily business practices.
1. Embrace your present state. Look closely at successful businesspeople both in and outside our industry and you’ll find this one trait: they don’t…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
August Top 100 HECM Lenders
Download your August 2015 Top 100 Retail HECM Lenders Report Here.
This report was compiled from data courtesy of Reverse Market Insight.
