Sales Tip: Should I Ring or Knock?


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Welcome Norcom Mortgage! Back to Basics Sales Tips:

So you’ve arrived at your appointment and you are standing at the door. Should you ring the doorbell or knock? It may seem like a silly question, but it’s not. Here’s why…

About John Luddy:

John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

Space, The Final Frontier: Seniors Living Apart Together



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People choose not to cohabit for various reasons. They may live far apart geographically, and love their respective homes too much to move. Or they want to remain near kids/grandkids. A huge issue for older adults is lifestyle, and feeling that each partner’s long-standing habits might not mesh well under one roof.

How we choose to live is as personal as our food and clothing preferences — perhaps more so. And while marriage or living together is still the norm for most couples, there’s another living arrangement that’s raising interest, if not eyebrows: LAT, or living apart together. The relative oxymoron may be especially appealing to seniors — and to reverse mortgage professionals, for whom one couple could yield two potential HECMs.

Screen Shot 2017-08-20 at 2.43.06 PMTo share or not to share, that is the question

As someone who once conceived the idea of side-by-side houses conjoined by a Great Room where a couple might meet for a meal, or when both decide they want to spend time together, LAT appeals to me as one creative solution to being partnered without necessarily sharing the same dwelling 24/7.

Such an arrangement might have been viewed askance a few decades ago. But now it’s gaining currency, particularly with those who say they’re “set in their ways”, yet are in a long-term relationship. And by the time people retire, many care a lot less about what others think than they did in their younger years.

Janice Handler, a retired lawyer in her late 60s, and husband Norman Ilowite, 85, have been LAT since they married in 1978. Ilowite spends most of his time aboard a 40-foot yacht; his wife lives in a two-bedroom apartment she purchased in 1993. They spend weekends together on the boat and winters in her apartment and, while Handler doubted the arrangement would work well at first, she now says she’d choose it again in a heartbeat. With an eye on her husband’s age, however, Handler avers they may need to rethink their LAT arrangement in the near future.

Another couple, in their 70s, has always been avant-garde: after meeting at a youth group 48 years ago, they finally wed in 2007. And while they’ve been happily LAT the entire time, as they age they say they might consider a single roof if one of them becomes seriously ill.

Key factors that affect the LAT decision

“U.S. society has yet to recognize LAT as a legitimate choice. If more people — young and old, married or not — saw LAT as an option, it might save them from a lot of future heartache,” says Jacquelyn Benson, assistant professor in the College of Human Environmental Sciences at the University of Missouri. Discussions about end-of-life planning and caregiving can be sensitive to talk about; however, LAT couples should make it a priority to have these conversations both as a couple and with their families. Many of us wait until a crisis to address those issues, but in situations like LAT where there are no socially prescribed norms dictating behavior, these conversations may be more important than ever.”

While it’s true that many older adults who’ve already been in a long-term marriage and are now divorced or widowed may not want to merge their lives so completely again at this stage, for some, the issue may be as simple as not wanting to change your surname if you remarry.

A 93-year-old Australian woman consistently refused her beau’s proposal for two decades, thinking taking his surname would be disrespectful to her deceased husband. When she learned she could keep her own last name she finally said yes, much to her longtime love’s delight. And since she had already convinced him to move to her town so the pair could be together, it’s a safe bet their years as a LAT couple might conclude with the wedding.

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A HECM or a Jumbo?

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Equity consumption, home appreciation, and heirs

HECM-JumboMillion dollar homes are more commonplace than many would expect and with more affluent borrowers considering a reverse mortgage, the question arises: does a reverse mortgage make sense? Jack Guttentag’s (aka The Mortgage Professor) latest column in the Herald Tribune addresses the strategies and risks to consider with high valued properties. Guttentag compare two borrowers aged 62 with homes worth $636,150 (today’s HECM lending limit) and $1 million respectively. If both take the maximum tenure payment of $1,854 per month and remain in their homes until the ripe old age of 100, their loan balances would have ballooned to $2.75 million. This assumes a relatively unchanged interest rate for both borrowers..

However, the pivotal factor in this scenario is the assumed appreciation rate of 4%. With an appreciation rate of 4% the heirs of the lesser valued home would stand to receive about…

Download the video transcript here.

Sales Tip: Do They Know What You Do?


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reverse mortgage newsWelcome Norcom Mortgage! Back to Basics Sales Tips:

It’s more than who you know. Even more important is for others to know what you do. They may know your name but be unaware of your specific expertise. If not, you are missing out on the opportunity for valuable referrals.

About John Luddy:

John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

The Gig Is Up: How Elders Can Bloom in the Freelance Marketplace



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Once upon a 1099, it was called freelancing. The newest catchphrase is “gig economy“. But however one refers to flexible, part-time, independent contractor work, it seems seniors are piloting the ship: since 1995, those aged 55-75 with a bachelor’s degree or higher have been more likely than other groups to choose alternative work arrangements. With the explosion of the aging population, this growth in self-employment has also accelerated.

Tapping till we’re tapped out?

People of every age, especially independent-minded Millennials, are less inclined to remain in a job they dislike than were previous generations. In fact, even in a climate of business uncertainty, more than two million Americans quit their jobs every month, according to the Bureau of Labor Statistics. Yet the national unemployment rate continues to drop; it was just 4.4 percent as of June 2017. Perhaps gigging has something to do with it?

The gig economy makes sense for seniors on many levels. People are tired of the tired maxims about pushing the envelope — though these days, the motto might more accurately be, “tapping till you’re tapped out”. Our sports-derived business metaphors all focus on more: go the distance, hit it out of the park, feel the burn. In a full-time job, this often means working well beyond an 8-hour day or a 40-hour week.

Consistent overtime can lead to more than a metaphorical sports injury, however. Employees who regularly attempt to knock it out of the park in the 13th inning can experience burnout, something an older adult definitely doesn’t need. But they do need money, and if they haven’t saved enough to retire without worry, trudging unhappily to work each day may seem like the only answer.

Unless they decide to gig.

reverse mortgage newsAlternatives to 9 to 5

If your reverse mortgage prospects — or their children, who may be in late middle age themselves — aren’t “feeling the burn” in a positive way (e.g., from healthy exercise), it may be time to discover how to become a just-in-time staffer, part of the agile workforce, the sharing economy. By seeking and aggregating a number of short-term, temporary assignments, someone could earn a respectable income, minus the yoke of a full-time job that’s long past its prime — even if the person gigging is well into her 70s or beyond.

Some studies estimate that by 2020, 43 percent of the American workforce will consist of independent contractors. That’s just three short years away. And it’s going to be fueled by “unretired” elders: a new breed of seniors who are continuing to work in their current professions beyond typical “retirement age” — or opting to start new careers.

One major upside of gigging for seniors? By not putting all their eggs in one basket, they eliminate the risk of being downsized out of the job they depend on — a real blow if someone has been a loyal employee, working for the same company for 20, 30 or 40 years.

There are even job sites that specialize by industry, so a senior can find their gig economy niche. Do you know a senior who’s a retired attorney? Upcounsel provides on-demand lawyers to business. Or maybe someone has been a photographer or musician, and rather than continue in these roles directly, they would like to mentor others. At Skillshare, teachers hold online classes using skills they’ve acquired throughout their life — and Skillshare experts aren’t required to have a degree. Here’s a list of 20 platforms in the gig economy.

Clearly, it’s easier than ever to market yourself and your talent, without burning the candle until you’re burned out. Since many people who leave their “regular” job in their 60s will have another 20-30 or more of years of life ahead of them, gigging may be an ideal way to supplement a HECM — and keep elders active, actively engaged, learning while earning, and enjoying creative encore careers.

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What are your thoughts? Please leave your input in the Comments section below, and share this post on social media using the Twitter, Facebook and LinkedIn icons at the top of this page. Thank you!

Two Senators concerned about Non-Borrowing Spouse Risks

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Bipartisan letter from senators cites concerns of new language endangering NBS protections

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Joint letter to HUD and OMB from Senators Rubio & Masto

Despite the increasingly toxic and adversarial political climate in Washington, D.C., two United States Senators have joined together to push the Department of Housing and Urban Development for clarification of language in the Trump administration’s new budget which could strip away key protections for reverse mortgage non-borrowing spouses. Bad language can lead to bad policy.

U.S. Senators Marco Rubio (Republican of Florida), and Catherine Cortez Masto (a Nevada Democrat) sent a joint letter to HUD Secretary Ben Carson and OMB (Office of Management and Budget) director asking the agencies to clarify the proposed language found in the federal government’s budget request. To date, no response has been received. New York Times columnist Matthew Goldstein rightly point the significance of the Home Equity Conversion Mortgage program writing, “reverse mortgages are viewed as crucial pieces in helping an aging population plan for retirement, and new lenders are coming into the market. The language that concerns the senators and advocates for the elderly is a proposed change in the National Housing Act that says, in regard to reverse mortgages, that a mortgagor “shall not include the successors and assigns of the original borrower under a mortgage.” Simply put, such language could leave spouses not named on the loan at risk of displacement or foreclosure.

Download the video transcript here.

Are You Telling the Truth?


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The importance of telling ourselves the truthreverse mortgage news

  • Owning our decisions
  • Dealing with our weaknesses
  • Leveraging our strengths
  • Walking the talk

The Power of Scent in Sales

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Why the familiar scent of Old Spice or Perfume may work wonders…

This week John Luddy discusses the power of scent and how you can leverage the psychological power of scent, something we often overlook…
About John Luddy: John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

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Are You Sure It’s Dementia? Paving New Neural Roads



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Scientist, yogi and author Lisa Genova, who wrote Still Alice, shares some encouraging words for brain health. While we can’t change our genes or prevent aging (yet!), restorative sleep is “like a power cleanse for the brain,” as is regular exercise and good nutrition.

These are basics we’ve heard for years, of course. But putting them into practice is something many people may not take seriously until they’re old enough for a reverse mortgage. A witty 93-year-old TEDx presenter suggests bodybuilding in old age is a great idea for precisely this reason. And if you start in your youth, you might be as limber as this incredible gymnast at 91!

Before It’s Clinical

However, the amyloid plaque that leads to Alzheimer’s disease begins accumulating in our brains 15-20 years before clinical symptoms appear. So keeping our brains healthy needs to begin in early middle age, if not sooner.

Here are some of the myriad posts in which we’ve discussed dementia, memory care, and brain health:

Medication — Or Meditation? Om-ing our way to mental health.

50th Birthday Reset: When medications block new brain cell formation, depression and pain remain.

I Knew You Looked Familiar: Traumatic brain injuries (TBI) can mimic Alzheimer’s.

Thanks for the Memories: Creative ways to keep our brains bright.

reverse mortgage newsWomen in their sixties are more than twice as likely to develop Alzheimer’s over the course of their lives as they are to develop breast cancer. And with the onset of mild cognitive impairment, women’s cognitive decline is twice as fast men’s. Alzheimer’s activist Maria Shriver asks, “Why aren’t more people interested in this? This is the biggest health crisis in the world… It bankrupts families faster than any other disease.”

All of which is good reason to make every effort to protect our aging brains. But there’s a larger issue that is often overlooked: misdiagnosis.

Dementia Masquerade

How easy is it to assume an older person has dementia, when it might actually be a vitamin or mineral deficiency? Absorption of nutrients declines with age. An elder exhibiting cognitive impairment may need B12 injections, more sun exposure (Vitamin D) or other nutrients. In such cases, “dementia” is reversible once the problem is properly diagnosed and remedied.

A serious health issue could also compromise a senior’s mental acuity: in her final months, my mother was not the woman I knew, although strangers (even the doctors unfamiliar with who and how she had been) did not detect it. Congestive heart failure, a series of falls, and a medication cocktail combined to alter her brain chemistry and function. She wasn’t as mentally sharp as she had been. But it was not dementia.

Similarly, in an elderly person the symptoms of a urinary tract infection can express as brain fog/confusion, which can lead to an erroneous dementia diagnosis — and a painful, untreated bladder infection.

Medication (such as chemotherapy) that blocks the formation of new brain cells can keep a person depressed and in pain, which can seem like a slide into dementia. This can become a causal circle: loss and loneliness tend to increase with age. Loneliness, and the lack of mental stimulation and emotional connection, increases the risk of heart disease and other physical and mental health problems. The result can be depression, and later dementia, if family members or caregivers are not paying close attention.

Finally, Parkinson’s disease, a long-term degenerative disorder of the central nervous system, can cause dementia symptoms. While dementia only becomes widespread in advanced stages of Parkinson’s, depression and anxiety are more common complications, and can escalate mental decline.

Inquiry Can Save An Elder’s Sanity

At the library recently, an older gentleman seated in the new book browsing area smiled at me as I turned from the shelves. He was beaming, so I stopped to ask, “What is it?” He replied, “I’m an artist, and I was sketching your form in my mind as you browsed the books.” He tapped his head, “It’s all up here.” Deeply moved, I took his hand and told him, “That’s one of the sweetest compliments anyone’s ever given me. What’s your name?” He told me his name, and just as we were getting into a conversation, a young woman rushed over and said, “Don’t tell her your Social Security number!”

Nonplussed, I thanked him again and turned to leave. After checking out my books, I saw the woman (out of his line of vision), beckoned her over and asked, “Are you his caregiver? When she said yes, her concern suddenly made sense. I asked, “Does he have dementia”? She said, “Yes, it’s in the early stages.” I told her our conversation had seemed perfectly normal, and that the only reason he was talking to me at all was because I initiated it. She said, “Well, a week ago he met another veteran and invited him over to the house; he told him his address!” Which struck me as reasonable behavior for someone — especially an older man — who was excited to make a new friend.

I cautioned her about being too quick to assume it’s dementia, and said I hoped his daughter, with whom he lives, had consulted a geriatrician (a physician who specializes in elder care). The 37-year-old caregiver no doubt saw this 86-year-old as elderly and infirm. But at my present life stage (and having had a lifelong friend live to 101), he didn’t strike me as particularly “old” — and certainly not addled.

Whenever possible, make sure your HECM clients’ family members are cognizant of the dementia impersonators that could be lurking in an older loved one’s life. By educating themselves, they may be able to restore a senior’s mental health — and maintain everyone’s sanity.

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What are your thoughts? Please leave your input in the Comments section below, and share this post on social media using the Twitter, Facebook and LinkedIn icons at the top of this page. Thank you!