What Lies Ahead?

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 What Can We Expect in 2014?

Reverse Mortgage News

With the changes and permutations the HECM program has undergone since 2010 one could argue we have already undergone a makeover of sorts. The Saver program, HECM for Purchase and the introduction and revocation of the standard fixed rate. True. However HUD’s recent revamp of the program stands apart as it’s first and only change that is a hard push back to the program’s original intent…to help senior homeowner’s age in place. The Saver gaves us increased crediability with lower costs and opened doors in the financial community. The HECM for Purchase expanded our legitimacy amongst real estate professionals and builders while the fixed rate maximized proceeds while securing interest rates. With recovering home values and a consolidated product what does 2014 hold in store? Here are just a few  speculations on what we can anticipate.

#1- New marketing. While the traditional reverse mortgage ads of the past increased public awareness of the reverse mortgage product, they have also attracted detractors concerned the typical message attempts to lure seniors with promises of vacations, luxury purchases and a flush retirement lifestyle. That may be a stretch yet it warrants our attention. In 2014 expect to see new and creative campaigns focusing on the HECM’s role in retirement planning versus cash alone. Will this attract a more affluent borrower? Time will tell.

#2- Further lender consolidation. We have already seen some medium sized lenders exit the space since last October. Expect a few remaning key players to step to the sidelines in the coming months. Today’s lending environment presents particular challenges to smaller shops with increased regulatory and compliance costs.

#3- Tenure, the loan de jour. Just as the Standard Fixed rate was the rage expect lenders and loan officers to begin promoting the powerful flexibility and growth potential of deferred tenure payments or a line of credit. Though some have lamented the loss of the standard fixed this new product landscape will convert many back to presenting the HECMs true flexibility and long term value when structured properly.

 

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For more Reverse Mortgage news, technology & training visit ReverseFocus.com.

Question Everything

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Think Critically, Think BIG

Reverse Mortgage News

In any profession, continued endeavor or activity we can fall prey to complacency which I would personally define as a false sense of contentment when we can do so much better. In essence selling ourselves short. This is not to disregard that one should recall and account for their successes. But more to the point. How can we as reverse mortgage professionals break complacency and embrace the motto ‘question everything’? Well here are a few points to ponder.

#1- The adjustable rate product often a better choice? The previous popularity of the fixed rate mortgage may lurk in the minds of many but truthfully which is a better product for the consumer? Should one forgoe a lower loan balance, a growing line of credit or future tenure payments all in the fear of increasing interest rates? After all if interest rates increase the borrower sees no change except that their loan balance will grow more quickly.

#2- Ditch Your Canned Speech. Certainly their are some elements of our presentation we should retain when speaking with loan officers reviving transactions or receiving….

Ho-Hum January? Smart Marketing For All Seasons

With a little ingenuity, you and your reverse mortgage prospects and clients can find ways to celebrate all year long. For instance: did you know January is National Oatmeal Month, as well as National Soup Month and Hot Tea Month? What a perfect lead-in for a lunch ‘n’ learn, where (depending on the venue and menu available) seniors could be served tea and soup along with a heaping helping of housing wisdom.

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New Year’s Resolution Killers

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Pitfalls to avoid in 2014

Reverse Mortgage News

It’s a word many dislike due to our culture’s abuse of the word. The word resolution comes from the same root as resolve. The American dictionary defines resolve as to ‘decide firmly on a course of action’. If our resolutions for 2014 are truly our committed course of action then here are some things we should avoid to insure we meet our goals and more importantly our internal promise to ourselves.

#1- You don’t really want to achieve it. Make sure your resolutions only include those things you truly desire to come to pass. If it is a goal you think you should reach because others are then you are doomed to fail unless you are personally committed and desire it yourself.

#2 Too vague.

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For more reverse mortgage news, technology & training visit www.ReverseFocus.com

December Top 100 HECM Lenders Report

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Download your December Top 100 Retail HECM Lenders Report Here.

[ad#Urban Financial Group]

IMPORTANT NOTE: This month and future reports will reflect ‘sponsor originator’ data since HFA has ceased to license brokers.

Reverse Mortgage NewsSee how your company & your competitors’ overall HECM endorsements were for the month of November.

 

For more reverse mortgage news, training and technology visit www.ReverseFocus.com

2013: A Turbulent Year

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A Look Back at a Bumpy 2013

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For reverse mortgage professionals 2013 will go down as a bumpy ride. And what a ride it has been. In the last ten years I cannot recall a year with more substantial and industry-changing developments. 2013 was rang in with HUD’s announcement they would be ceasing the problematic Standard Fixed Rate Product. While it helped many borrowers who needed maximum proceeds to payoff existing mortgage balances it also added to FHA’s risk of future insurance payouts from its Mutual Mortgage Insurance (MMI) fund. One look at the amortization chart of a fixed rate loan with the full upfront distribution and it didn’t take a mathematician to figure out  substantial risk was baked into the fixed rate loan. Unfortunately generous payouts in loan compensation unduly influenced some originators where a more flexible adjustable rate loan may have been more fitting.

While politicians may be adept at spending money they are also politically astute knowing a faltering FHA Home Equity Conversion Mortgage program required some painful changes lest they incur the wrath of watchful policymakers and voters. HUD asked for and received the authority needed to make program changes witht the passage of the Reverse Mortgage Stabilization Act which led to product consolidation. After eliminating the standard fixed rate in April HUD moved to eliminate the standard adjustable and both saver loan programs altogether in favor of one two-tiered product.

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For more reverse mortgage news, technology & training visit www.ReverseFocus.com

Keys to a Happier 2014

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Practical Ways to Increase Happiness in the New Year

Reverse Mortgage News

A happier 2014. Happiness. That is our wish for you in the coming year. While we cannot control every event that comes our way we can take some practical steps. As we wrap up 2013 here are a few things we can do to have a happier year.

1- Avoid retail therapy. Feeling resetless, unhappy? Shopping is not the answer. New bobbles and gadgets only briefly distract from what is bothering us. Instant gratification is only a temporary fix.

2- Work out more. The more we work out the more endorphins we generate which are natural chemicals leading to feelings of well being and enthusiasm for the rest of the day’s activities.

3- Spiritual foundation. If you have spiritual or religious beliefs don’t neglect them. Remind yourself of what is important. Your guiding principles, outlook and mission in life. Gathering with those who believe like you gives you a sense of belonging and encouragement knowing you are not alone in this life.

4- Volunteer. One wise man told me “want to foget your problems? Work on someone elses”. Getting our focus of ourselves allows us to assist those around us who often have it much worse than we do. A soup kitchen, community cleanup or mentoring children are all great ways to pay it forward and bring some perspective.

5- Embrace friendship. Make the time to spend with friends. Focus your time on laughter and shared interests avoiding negative talk and gossip. Let yourself be fully in the moment and snap a few pictures for keepsakes while you’re at it.

6-Eat better. The most powerful mood altering drug we put in our bodies is food. Be mindful of what types of food make you slump or power you up for the day. Lean proteins and veggies should be a part of each meal.

7- Turn off the television. Break out a book or play a game with your loved ones. If you fast from TV for a few days you may be surprised with the ample amount of time you have to enjoy what’s important, work on projects or reconnect with those who matter most.

8- Find the positive. Despite news or recent developments in our industry be cautious against over-reacting. Look for the silver lining in each situation while planning realistically. 2014 is just around the corner. How we approach it is in your hands. Have a great weekend and thank you from each of us here at Reverse Focus for your continued support. Happy New Year!

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For more reverse mortgage news, technology & training visit www.ReverseFocus.com 

Protecting Seniors From Financial Fraud

With the rollout of the Affordable Care Act, it’s especially important to be aware of schemes to defraud seniors of their savings, which are sometimes cloaked as medical assistance. Scam artists have become more creative: seniors may receive mailings for “medical treatments” that appear to be endorsed by actual physicians.

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