Does the Assessment Require the Kitchen Table?

[vimeo id=”138935964″ width=”625″ height=”352″]

Does the Financial Assessment Require Face-to-Face Meetings in the home?

reverse mortgage news

Much has been written about the Financial Assessment, especially the level of personal financial information required and the rapport needed to build the trust to gather such information. Does this mean that the assessment requiresface to face meetings with potential borrowers?

A recent article in Reverse Mortgage Daily addresses this vexing question. Until a few short years ago the vast majority of reverse mortgage sales took place at the homeowner’s kitchen table. An intimate setting where seniors typically handle their personal finances and paperwork. With the advent national television campaigns call centers began to…

 

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

You May Be Burned Out If…

[vimeo id=”138818892″ width=”625″ height=”352″]


Signs of Burnout and Tips to Help Stop the Insanity

reverse mortgage news

Burnout. It didn’t happen overnight. If you reflect you may find it was a slow burn that begin months or even years ago. Long hours, never ending changes, new regulations, technology and software issues all can contribute to acondition that is common in the American workplace. What are the signs of burnout and how can we avoid it? Here is what to look for.

1. Spaced Out. Mental lapses. Those suffering burnout may find themselves spacing out or going mentally blank. Just as your computer may occasionally show an hourglass telling you to wait our brains do not respond well to extended stress and mental overload. Try listing your tasks in an organized manner and time blocking to help clear your mind a bit.

2. Short fuse. If you find yourself losing your temper quickly at things that you would typically shrug off this may be…
Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

The Triple-Digit Club

Resources to Usher Elders into the Triple Digit Club


The recent White House Conference on Aging confirms how the silver tsunami is changing healthcare, housing and technology across the globe, with no fewer than five technology announcements, the most impressive of which may be the mobile-friendly, easy to understand Aging.gov. Administered through the Department of Health and Human Services, Aging.gov is a one-stop resource providing older adults, their families, friends and caregivers information to help seniors live fulfilling, independent lives.

The Housing Issues segment contains a link to HUD’s portal for Home Equity Conversion Mortgages, so your prospects and clients are assured accurate information. The same housing section contains links to mortgage relief scams via the Federal Trade Commission, and important information about housing and disabilities. Because the new site is designed with seniors in mind, it’s easy to navigate and the language is clear and simple, a boon for both seniors and their loved ones.

reverse mortgage newsOne major companion feature is the Aging Well Hub, a unique collaborative research and development initiative aimed at delivering innovative, connected solutions and services for aging well across the continuum of care. Its goals are to drive open innovation in the aging journey, share thought leadership to foster transformation, and promote a positive image of aging.

The Hub’s initial collaborators form an impressive cross-disciplinary roster that includes Georgetown University’s Global Social Enterprise Initiative (GSEI); MIT’s AgeLab (which we profiled in this post on Gerontechnology); Netherlands-based Philips, a diversified health tech company; the American Architectural Foundation; ReACT (Respect A Caregiver’s Time), an employer-focused coalition dedicated to addressing the challenges faced by employee caregivers; real estate developer Smart Living 360, and non-profit eHealth Initiative, whose goal is to drive improvements in the quality, safety, and efficiency of healthcare through information and information technology — representing all of the stakeholders in the healthcare industry.

Another tech announcement is Uber’s move into Driving Miss Daisy. While robocars are one option for seniors who ought to relinquish the keys for their own safety — or who prefer not to drive, especially after dark — UberAssist could be an even better option. The ride company is expanding into the senior space with pilot programs in Florida, Texas, Ohio, Arizona and California that will partner with senior community centers and other advocates to provide free technology tutorials and free or discounted rides to older Americans. For the digitally savvy silver set, it’s a double boon.

Then again, driving may be a longevity key, at least if an elder used to drive a school bus like Zilpha Nowlin, a member of the triple-digit club who still swims daily at 101. One trait centenarians seem to share is an indomitable spirit: retired psychologist Donald Smitherman used to play tennis, but after he lost sight in one eye, he took up golf, “which is a lot more relaxing.” All the centenarians remain active, engaged with life and upbeat, three of the main ingredients for cooking on all burners at every age.

 
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

The Truth About Origination Fees

[vimeo id=”138362313″ width=”625″ height=”352″]


Clear Guidance & Open Communication Needed

fees-bagTruth be told most prospective reverse mortgage borrowers focus on the cash benefit, not the pricing. That soon may be changing and each of us as reverse mortgage professionals had best be prepared. Last week the Mortgage Professor, Jack Guttentag,  published a article on his blog entitled “Are HECM Reverse Mortgages Overpriced?

As our industry struggles to shed our reputation as an expensive loan of last resort perhaps we should consider a few ways in which uninformed homeowners approach the loan and how we communicate when it comes to origination fees.

First of all origination fees are often a necessary…

 

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Assessment Confusion: Extenuating Circumstances

[vimeo id=”137650627″ width=”625″ height=”352″]

Many Originators Seeking Clearer Guidance Under Assessment

reverse mortgage newsYour applicant’s credit history isn’t so rosey. A smattering of late payments on credit accounts, an overdue property tax installment or problematic medical bills. Such issues often require an explanation of extenuating circumstances.

The HECM Financial Assessment has transformed the process of originating reverse mortgages and consequently complications will arise, often around the issue of extenuating circumstances. Extenuating circumstances put quite simply are factors that explain the underlying reasons for blemishes in the applicant’s credit history. This is key as the credit history and payments help determine the borrower’s ‘willingness and capacity’ to meet the ongoing obligations of the loan.

HUD notes that lenders must make a “connection between the specific occurrence(s) and the measurable impact on the occurrence(s) on the mortgagor’s finances”. Quite honestly it is a subjective process.

 

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Before You Send That Email…

[vimeo id=”137547621″ width=”625″ height=”352″]


Email. It has become our primary means of professional communication. Consider for a moment how many emails you send versus phone calls you make. Have I got your attention?

reverse mortgage news
Think twice before hitting that send button!

Since emails are the primary means by which we communicate with coworkers, processors, borrower and vendors we should first consider these tips before hitting that send button.

1. Keep it short. If you feel you must write a five paragraph email perhaps you shouldn’t be using email in the first place. The nuances, detail and tone of the conversation are often lost in written communication. If your email is longer than two paragraphs consider this: a phone call! That’s so old fashioned, eh? Seriously the time spent on a short phone call is often less than writing a lengthly message. Better yet reply back “can we schedule a short call to discuss this later today”?

2. Don’t be secretive. If you are replying to several individuals but don’t want them to know you’ve included a particular individual avoid using the BCC feature..

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

 

The Art of Playful Aging


We’ve discussed the connection between aging and creativity, especially when accessing one’s creative well can enhance memory. But creativity can go even deeper: helping to transform communities and heal generational rifts.

reverse mortgage newsIn Portugal, an organization known as LATA 65 turns seniors into street artists, complete with spray paint cans, masks and gloves — but instead of defacing property, the mission-motivated elders search out run-down areas in Lisbon and make art! It’s fun and fruitful for the participants, who get to exercise a creative impulse for good, beautifying their city while exemplifying how street art can serve a positive purpose.

Speaking of exercise and play — who says playgrounds, like spray paint, are just for kids? Reverse mortgage prospects and clients (as well as the loan originators who serve them) can now stay fit in playgrounds designed with mature bodies in mind. Senior play parks are already popular in Europe and Asia; stateside the concept is taking shape as multigenerational playgrounds. Sarah Pinsky, Director of Client Services at KaBOOM!, the nonprofit organization partnering with the Humana Foundation to build cross-generational playgrounds nationwide, calls play the “great connector” for adults and the children in their lives. In addition to cognitive and physical benefits, it reduces stress in all age groups.

The project is especially relevant as more retirees become caretakers for children while their parents are at work. Senior playgrounds are also a fiscally smart move for a globally aging population: keeping elders alert and active will postpone and hopefully reduce health care costs.

Out of the Mouths of Babes

Asking kids how to make senior facilities more child-friendly is in the mix: a Texas-based senior living community developer has formed an advisory committee to ensure their planned communities will feel welcoming to the grandchildren who come to visit.

The consultants are all 5-12 years old.

The children have suggested everything from menu options that appeal to kids (e.g., frozen yogurt) to how-to art classes. Given that art and aging go together like pie and ice cream (or pie and frozen yogurt) the project sounds destined for success.

“I know the importance of having the younger generation around the older generation,” says Avanti co-founder and chief operating officer Lori Alford. “The younger generation learns so much from their grandparents, and the older generation gets inspired and is entertained by the grandchildren. It’s important to connect the two.”

Because we age at dramatically different rates (only 20 percent of aging can be blamed on genes), art, physical activity and generational closeness all play a role. And seniors can still affect their genetic destiny going forward, says Mitchell Gaynor, M.D., author of The Gene Therapy Plan, by harnessing the power of food to change their predisposition to disease. One source of aging is the acronym AGE, for advanced glycation end products, which are created by free radicals in deep fried or heavily processed foods, for example. AGE-bound tissues, says Gaynor, become brittle, rigid and prone to breakdown, setting the stage for serious illness such as heart disease, cancer, and diabetes.

His prescription to get out of the high-AGE pool is surprisingly simple: eat healthful foods that reduce inflammation and oxidative stress in the body. While the book includes more than 60 pages of recipes, they aren’t truly necessary if someone simply makes a commitment to eat fewer “convenience” foods and instead focus on fruits, vegetables, fish, grass-fed poultry, nuts and seeds. After expending energy spray-painting the town or playing with the kids in a multigenerational playground, an AGE-free meal is just the ticket to restore a senior’s body, mind and spirit for the next adventure.

Don’t Close the First Time

[vimeo id=”136877792″ width=”625″ height=”352″]

Why One-Appointment Closes are Doomed to Fail

reverse mortgage newsWith the increasing complexity of the HECM and the Financial Assessment attempting to educate and close your prospects in the first appointment is akin to asking them to drink from a firehose.

Each of us may be reverse mortgage professionals, educators and evangelists spreading the word of the benefits that the reverse mortgage offers. However stripping all titles away we are truly salespeople in the business of matching prospective homeowners with a reverse mortgage when suitable. With this in mind each of us should examine our approach and consider are we asking for too much too soon?

In my early days of originating reverse mortgage the product was simpler: one product, one margin and fewer complexities. This often allowed me to take an application on the first appointment. Today, everything has changed. The sheer volume of information we should be reviewing in person or by phone in our first encounter is…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Terms of Endearment

Borrower Competency and Written Agreements


It’s a situation most loan officers who deal with older people will face at some point: while many elders may take awhile to come up with the word they want, or respond slowly to your questions, the borrower sitting before you appears to be either incompetent, or right on the edge. What do you do?

Since reverse mortgage professionals are not medical experts (generally speaking; there may be exceptions), you can’t really make a judgment call. For some, it may be a delicate balance between personal responsibility and earning a commission. So this begs the question: what is the best ethical — and legal — approach

Who holds the power?

reverse mortgage newsPower of attorney (POA) is one solution. If a prospective borrower is deemed incompetent or incapacitated, their POA would be the one to sign the loan documents on their behalf. HUD has a provision for this situation, which occurs on a limited basis. The POA would sign their name followed by “POA”, and submit the supporting POA document with a letter of explanation to the underwriter.

The larger issue, of course, is what is in the best interest of the seniors you serve. Will the POA be able to help the homeowner / borrower to make a decision in the borrower’s best interest? Or should you decline to work with this prospect?

Will your concern for a senior’s well being matter more than an ill-chosen reverse mortgage? Or will the reverse mortgage make the crucial difference? This may be one of the most challenging moral and practical issues you face as a loan officer.

Putting it in writing

As you’re well aware, the lack of written agreements can cause strife among family members who go into business together — and even more so when those with blood ties decide to share housing.

In one disturbing case described by elder law firm Chronic Care Advocacy, a woman (who was mentally competent) claimed that despite investing substantial assets to build a mother-in-law suite in her daughter’s home, paying rent and utilities for more than four years, and assisting with the cost of installing a backyard pool, she was “kicked out” by her daughter and son-in-law.

Naturally, the daughter and son-in-law paint a somewhat different picture of events leading up to the lodging debacle. What’s most relevant here is: why did this situation end up in court? Family members make informal agreements among themselves all the time, and children often bring elderly parents into their homes when the parents are no longer able to manage on their own.

Family members also loan each other money. Without a written agreement, misunderstandings can later arise about repayment terms. When problems surface, so does stress, which can fracture family relationships.

Put such agreements in writing, urges Chronic Care Advocacy. Spell out:

  1. What each party will do. For instance, if a parent is planning to move into a child’s home, the agreement should specify whether the parent is paying rent or will only be contributing to household expenses.
  2. What else is included. Will the parent or other elder need transportation to doctors’ appointments, special meals, or medical equipment? If a caregiver becomes necessary, who will pay for this service?
  3. What nullifies the agreement. What circumstances would necessitate the parent leaving the home, e.g., a health issue that requires nursing care? What circumstances might allow a return?

Many times just writing down the terms of the agreement will spur family members to ask each other crucial “what if” questions. While it may seem overly formal to write everything out between family members, coming to consensus about how these issues will be handled at the outset is preferable to facing a crisis.

Whether a reverse mortgage client is competent or questionable, all seniors need to understand the importance of putting their choices and decisions in writing. In the end, the terms of an agreement can help keep terms of endearment intact.