The hippocampus (which isn’t remotely related to a hippopotamus) is the part of the cerebral cortex that has to do with memory.
Continue readingSmart Planning with HECM60
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Set Yourself Apart as a Reverse Mortgage Planner
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#1 Distribution limits. Your reverse mortgage borrowers with high existing mortgage balances will only be impacted by the lower Principal Limit Factors NOT the Distribution Limit. That’s right. HUD allows for those with mandatory obligations of a mortgage payoff that when combined with closing costs and required set asides to use up to 100% of the gross principal limit. Here’s an example. Harry Homeowner qualifies for a Gross Principal Limit of $200,000 but has a mortgage payoff of $160,000, a repair set aside of $13,000 and closing costs of $5,000. That’s total mandatory obligations of $158,000 or 89% of the Principal Limit. That’s right, we broke through the 60% first year cap. #2 Cash at closing? Yes, it makes sense for those with access to funds to avoid not only the upfront 2.5% FHA Mortgage Insurance Premium but also younger borrowers who want to reduce the lifetime cost of the loan.
Why Do You Go to Work?
What makes us get up every morning and show up at the office, get in the car and drive to an appointment or meet with a prospective borrower?
Continue readingNew Service Launched for RM Industry
Equity Settlement Services, Inc. and the Law Offices of Puleo Delisle, PLLC are proud to announce the introduction of Senior Settlement Services.
Continue readingPlanning for Transition
Your reverse mortgage clients and prospects have made many transitions throughout their lives, and chances are, most of them were well thought out and planned in advance:
Continue readingA Problem with a Solution
Today the federal government pays for 62% of Long term care services to the tune of $130 Billion dollars a year. That’s a problem the federally-appointed Commission on Long Term Care brought to light in their report to Congress
Continue readingGive Up & Give In?
Giving Up & Giving in are immediately seen as negative but let’s look at it from another angle…
Continue readingThe Plateau Effect
Clearly, multitasking is overrated, as the authors of a powerful new book, “The Plateau Effect: Getting from Stuck to Success”.
Continue readingGood Intentions vs Original Intent
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Though Unwelcome Change was Crucial
Watch Last Week’s Video Here | Submit Feedback to HUD on Financial Assessment Here
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The Importance Of Intent In The Reverse Mortgage Industry
The saying goes “the road to hell is paved with good intentions”. The same could be said of the federally-insured reverse mortgage program’s recent predicament and HUD’s swift action to avoid disaster…the closure of the program. Much of the recent reverse mortgage news has focused on the announced overhaul of the Home Equity Conversion Mortgage Program, but few look at or understand it’s original intent. The words original intent are fitting when examine the origins of our program versus its evolution over the last 24 years. The Housing & Community Development Act which laid the groundwork for the reverse mortgage program says the purpose is “to meet the special needs of elderly homeowners by reducing the effect of the economic hardship caused by the increasing costs of meeting health, housing, and subsistence needs at a time of reduced income, through the insurance of home equity conversion mortgages to permit the conversion of a portion of accumulated home equity into liquid assets.”
Now What?!
Now that the old HECM is effectively gone what can we do to protect and grow our business? Here are nine valuable strategies you can begin working today!
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