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
[ad#Network Funding]
Though Unwelcome Change was Crucial
Watch Last Week’s Video Here | Submit Feedback to HUD on Financial Assessment Here
[vimeo id=”74495979″ width=”625″ height=”352″]
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!
Continue readingHECM Changes Demystified
10 Things you must know about changes to the Home Equity Conversion Mortgage Program.
Continue readingHECM 3.0. A Prescription for Change
With its recently announced changes HUD has effectively launched HECM 3.0. he programs third reinvention eliminates all present loan programs and effectively gives us a Saver reverse mortgage with a higher and graduated upfront mortgage insurance premium.
Continue readingFHA to Reexamine MMI Fund Projections
[ad#Network Funding]
A Second Look at MMI Fund after Program Changes…
BREAKING:Read Mortgagee Letters 2013-27 & 2013-28 for complete details of changes.
[vimeo id=”73486075″ width=”625″ height=”352″]
A second look at the Mutual Mortgage Insurance Fund is exactly what FHA plans do to after setting the wheels in motion for historic changes to the reverse mortgage. Yes, after committing to eliminating both the Standard and Saver product in lieu of a new one FHA wants another look. It all began in November 2012 when an Actuarial review of the MMI fund found that the reverse mortgage portion accounted for a negative 2.8 billion dollar economic value. Economic value is a better description than losses for these are projected losses based on actuarial analysis and data. In other words, with home values that fell this percent and projected loan balances and appreciation the fund would pay X dollars. Early figures showed the HECM portion of the fund accounted for 2.8 billion in projected losses of the 16 billion dollar overall future shortfall. Later that figure was revised to show projected losses from reverse mortgages totaling $5.2 billion. The dire numbers were too unsettling to ignore. So why the second look at the fund at this stage?
Everything I Needed to Know I Learned in Kindergarten
Why should you reflect upon kindergarten? Because it calls us back to our core values and a simpler time in life when things were…well let’s say more black and white.
Continue reading