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

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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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Shaping the Message: Extreme Summit

Controlling Our Market Brand and Perception

Marketing experts see plenty of companies begin a public relations campaign and then leave it in the hands of the media. When it comes to reverse mortgages one can safely say the media has done its share of harming the reverse mortgage’s reputation with half-truths, inaccuracies and outright misleading statements. Sure some media outlets have given balanced or positive coverage but are we controlling and shaping the message. The good news is that our industry is taking action. The National Reverse Mortgage Lenders Association in cooperation with several lenders is launching the “Extreme Summit”. Its a PR effort focused on geo-targeted advertising, driving positive impressions in the news and rebranding the HECM product itself.

The idea was born from a brainstorming session held at NRMLA’s 2012 annual meeting in San Antonio led by Liberty Home Equity Solutions CEO Otto Kumbar. Lender participants are putting there money where their mouth is committing over $2 million dollars to date. Such a campaign is critical since the perceived typical reverse mortgage borrower is becoming more scarce in light of reduced lending ratios and the financial assessment. If we let the media and general public push the erroneous notion the loan is only for the house rich and cash poor our marketshare stands to take another cut. Rather than playing damage control…

Harsh Truths

Harsh Truths for Increased Success

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Reverse Mortgage News

One of cinema’s most memorable quotes came from the film “A Few Good Men” in which Jack Nicholson’s character retorts “You can’t handle the truth!” In an age where many in society see truth as relative and subjective there are a few truths about life we should embrace for greater happiness and productivity.

1- Life isn’t fair. It seems obvious but our minds often subconsciously trick us asking ‘why is this happening to me?!

2- First steps are always the hardest. Whether it’s a diet, a new marketing plan or parenting making a substantial change requires that first leap of faith…actually just a small step.

3- Good things don’t happen overnight. Think back on any great accomplishment you’ve made. Did it happen instantaneously? No. Great rewards require great commitment and accomplishment and good old hard work.

4- Everyone is not on board. Just because you have a great idea…

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Get more reverse mortgage news, training & technology at www.ReverseFocus.com today.

Against The Wind

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2014 Presents Challenge & Opportunity for HECM Industry

reverse mortgage newsThe classic Bob Seger song laments, “Against the wind. I’m older now but still running against the wind.” Both retirees and our industry are pressing against the resistance of retirement funding and a more restrictive product for us to offer. The good news is that the reverse mortgage industry and the HECM product have proven their staying power having endured one of the worst housing crashes in history, an economic crash and numerous product changes. Also increasing home values have buoyed production with an increase of 15% through November.

The next headwind will be felt once HUD enacts the financial assessment in it’s effort to reduce risks of borrower defaults and subsequent claims against FHA’s insurance fund. But are some of these recent developments a blessing in disguise? Columnist Phil Hall in the National Mortgage Professional Magazine says yes. Hall says, “A new oversight regimen may finally help to erase the lingering doubts surrounding the product.” If we look at the true obstacle for market growth it’s not the 15% reduction in principal limits, the elimination of the Standard Fixed rate or increased insurance premiums. It’s our industry’s reputational woes. Hall cites one originators experience…

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