Properly Explaining the HECM Line of Credit
Many get it wrong- are you correctly explaining the line of credit
Solid product knowledge brings sales confidence. How accurate is your description of how the HECM line of credit (principal limit growth rate) works? Join Norcom Mortgage today and let them help get you started!
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
Late-Blooming Genius: Gut Truth About the “Now” Old Age
It’s a great time to grow old: the discovery of telomerase, the enzyme that replenishes the DNA on our telomeres (the tiny “shoelace caps” that shorten with age), is a massive step forward for longevity. And nonagenarians, no longer a novelty, are blazing trails in business and technology. Like 94-year-old physicist John Goodenough, who recently filed a patent for a new kind of battery that may revolutionize electric cars and end our dependence on fossil fuel.
Yet despite these breakthroughs, we’re far from creating a nation of brilliant centenarians. Why? Take a look at how we live, says Deepak Chopra, M.D. Our telomeres are at high risk if we:
- Are exposed to severe life stress
- Have a history of being treated for anxiety or depression
- Lack social support from friends and family
- Lead a sedentary lifestyle with no regular exercise
- Suffer from chronic insomnia, or sleep fewer than 7 hours a night
- Consume a diet high in fat, processed foods and sugar, without sufficient fiber and omega-3 fatty acids
- Are exposed to cigarette smoke, pesticides, and other chemical toxins.
While seniors in their eighties and beyond may be exempt from some aspects of this list, it describes many Boomers, the oldest of whom are now past 70, to a “T”. And that doesn’t bode well for a healthy old age.
What we can learn from indigenous cultures
Alberto Villoldo, Ph.D., a medical anthropologist, psychologist, and shaman, studied indigenous cultures in the Amazon and Andes for more than thirty years. To his surprise, he found zero cancer, zero heart disease, and zero dementia. What he discovered goes hand-in-glove with telomere research.
Seniors (or anyone, of any age) can “grow a new body using ancient healing secrets,” says Villoldo. “Modern medicine does not look after our health; it looks after our disease. If you live to be 85 today, 50 percent of the population will have diagnosable Alzheimer’s: a terrifying thought when you realize that 150 years ago, Dr. Alzheimer hadn’t even been born! A senior cannot explore higher consciousness, or even feel good about themselves, if they have Alzheimer’s disease.”
How can we prevent these extraordinary “killers of civilization”, so our health span equals our lifespan? In two primary ways, says Villoldo:
1) Detoxify. We’ve been exposed to huge amounts of toxins in the last century: heavy metals such as mercury (in fish, dental fillings, and pollution generated from coal burning in China); lead plumbing, aluminum cookware, pesticides. Sugar is equivalent to a recreational drug; it’s eight times as addictive as cocaine. A century ago, we consumed five pounds of sugar per person per year; today, each of us eats 195 pounds of sugar a year! Sugar switches off the longevity gene in our cells. As we detoxify, we begin to trigger the natural production of stem cells in the body.
2) Give the body what it needs. Omega 3 fatty acids and neuro-nutrients (superfoods) trigger the production of stem cells in your brain, says Villoldo. “You need to be able to feed your higher brain. The lower, limbic brain lives in scarcity and greed, is not able to forgive because of resentment and rage: this brain feeds on sugars. To get to the higher states of consciousness where you can dream your world into being with beauty and grace, you need to turn on the higher order neural networks, which feed on good fats: coconut oil, avocado oil. Once you engage it fully, the brain fog goes away.”
The plant medicines he recommends:
- Curcumin (found in the spice turmeric)
- Resveratrol (found in the skin of grapes)
- Sulforaphane (a compound found in cruciferous vegetables, e.g., broccoli and cabbage)
All three are becoming popular dietary supplements. “In the laboratory, we found these plants switched on more than 200 longevity genes inside the cells, and switched off more than 500 genes that create disease: breast cancer, heart disease, inflammation.”
Surely you jest!
Ed Park, M.D., M.P.H., would no doubt agree with Villoldo’s assessment. Credentialed from Harvard and Columbia, Park didn’t think much about aging, or question prevailing doctrine, until his father was diagnosed with brain cancer when Park was 38. At that moment, he began studying telomeres. As the 19th patient and the first doctor to begin using a telomerase activator, his mission is to “convey a new, unified theory of aging and disease based on telomeres and stem cells.”
Yet despite his faith in telomerase, he champions the importance of gut-level healing. “If exercise and diet are the king and queen, the immune system is maybe the jester!” he says.
His 5-point prescription for increasing telomerase activity without supplementation:
1) Practice peace, love and understanding
2) Focus the mind on your breath: this puts you in the moment and relaxes you
3) Laughter: Dr. Park ran into an old flame he hadn’t seen in 25 years, and she “hadn’t aged a day. She laughed at the end of every sentence,” he says. Similarly, a 112-year-old lady he had the pleasure of meeting was telling dirty jokes and cracking people up!
4) Gratitude: being able to go with the flow and make something positive out of whatever happens
5) Sleep! Deep sleep, for at least 8 hours a night, allows the body to repair itself. It’s a myth, he says, that older people need less sleep; the exact opposite is often true.
Exceptions that become the new norm
Ninety-year-old Louise Hay, a mentor of mine for 30 years, writes, “I have come to learn that premature aging begins in your mind. A San Francisco medical school discovered that the way we age is not determined by genes, but by something called the aging set point — a biological clock that exists in our minds. This mechanism actually monitors when and how we begin to age by how we think. The set point, or aging clock, is regulated in large part by one important factor: our attitudes toward growing old.
“For instance, if you believe 35 is middle-aged, this belief triggers biological changes in your body that cause it to accelerate the aging process when you reach 35. Isn’t it fascinating! Somewhere, somehow, we decide what is ‘middle age’ and what is ‘old age.’ I have this image in my mind that I am going to live to 96 and still be active, so it’s very important that I keep myself healthy.”
If one or more of your reverse mortgage clients is envisioning an encore career well beyond what used to be “retirement age,” the new wisdom about gut health, telomeres and mindset may help you support their evolving perspective. An 82-year-old restaurateur and techno DJ, for instance, is having a blast. One young club patron enthuses, “She’s got this energy that goes beyond age, that can equal any person here.” Sumiko Iwamuro has been running her restaurant for 60 years, but only started DJ’ing in her 70s — after a year of training.
What are your thoughts on creating a health span to equal our lifespan? 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!
Misspent Money, Scams, Personal Stories & More
The roundup of weekly HECM news
What do strippers, casinos, and groceries have in common? It’s bad enough to be forced to foot the bill of your own company’s audit and financial monitoring. Reverse mortgage servicer Ocwen Financial paid over $44 million dollars to cover the costs of monitoring services to Fidelity Information Services as part of their agreement with the state of California for its investigation of claims that Ocwen did not produce the required paperwork related to the state’s Homeowners Bill of Rights. The servicer alleges the auditor burned through the budgeted money allocated for a two year period in just 11 months, paying for strip clubs, casinos, liquor, and groceries. They also claim that FIS auditors watched videos on company time, left without clocking out, and inflated daily hours worked and mileage expenses. F.I.S. flatly denies the allegations. The auditing firm’s contract was terminated by the court under a new consent order.
Fraud comes in all shapes and sizes and it wasn’t from a loan officer or financial professional. Court papers allege a Chicago contractor, Mark Diamond, of scamming more than $10 million in a repair scheme that targeted older homeowners . In all there are an alleged 122 victims- most women, African-American and in their 80’s.
May Top 100 HECM Lenders
Download your May 2017 Top 100 Retail HECM Lenders Report Here.
This Report Does Not Include Broker or TPO Data
This report was compiled from data courtesy of Reverse Market Insight.


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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 Trump Era & The HECM
Good News for HECM, Not So Much for Housing Programs
President Donald trump embodies the essence of a political wrecking ball in Washington D.C.- a city known to cling tightly to political traditions of governing and supporting long-standing social programs, despite our ballooning deficits.
While the President weathers opposition from both Democrats and Republicans alike, his administration’s draft 2018 budget for the Department of Housing & Urban Development reflects populist sentiments of a smaller, efficient government with parsimonious allocations for social program spending. Many feared the populist agenda would gut essential HUD, programs, and more specifically, the Home Equity Conversion Mortgage program.
Politico obtained a copy of the Trump administration’s preliminary HUD budget revealing plans to gut $6 billion from several programs including the outright elimination of the Community Development Block Grant, neighborhood initiatives, and a housing program for veterans. Despite these unpopular cuts, the HECM program was spared and even strengthened.
Two changes stand to liberate the HECM – the removal of the annual cap and the erosion of the unchecked powers of the Consumer Financial Protection Bureau…
How Are Your Communication Skills?
Your Voicemail: What Message Are You Sending?
Your Voicemail Message Speaks Volumes
Your voicemail. When is the last time you’ve listened to your own message, menu options, and more? John speaks about the common voicemail sins that many HECM professionals can slip into.
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
Financial Assessment Accepted by Industry
The origins of the now-accepted HECM Financial Assessment
Despite it’s initial chilly industry reception the HECM Financial Assessment has been accepted- so said HUD’s Phil Caulfield. During his remarks at the NRMLA western regional meeting in Huntington Beach Caulfield emphasized the importance of the assessment stating “if we hand’t done this, there probably would be a HECM program. It’s that important”.
Necessity is the mother of invention. Several factors contributed to the genesis of the Financial Assessment, but the two most notable were lenders seeking to reduce the risk of paying delinquent property charges before or during the prolonged foreclosure process, and the reputation risk of issuing loans to borrowers who would likely default on property charges and the subsequent public fallout from the resulting foreclosure.
In October 2011, FHA issued guidance that HECM lenders could consider an applicant’s credit history and financial capacity- perhaps in response to pressure from lenders seeking a public statement. The largest HECM lenders weighed whether to launch their own financial assessment guidelines in the hopes that other lenders would follow suit. MetLife was the first to venture into the uncharted waters of HECM underwriting in November 2011.