John shares one of his pet peeves when attending business meetings and conferences…
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
To say that today’s retiree is not prepared to retire is an understatement. More American’s approaching retirement have little or no savings to fund their non-working years. Not surprising in light of fewer pensions, higher inflation and rising healthcare costs. Many find themselves unable to adequately invest for retirement struggling to cover their daily living expenses. However, one of those expenses can be a forced retirement savings plan- the home mortgage.
Since the post-depression era, American homeowners dutifully paid their mortgage throughout their working years while raising a family or paying for their child’s college education. Years later, many were able to participate in the rite of passage transitioning from work to retirement paying off their mortgage. The elimination of their largest expense allowed them to enjoy a modest but comfortable retirement. At this moment more seniors are waking to the reality of just how fragile their finances truly are. Much of this can be attributed to the shift away from company pensions to workers funding their own retirement accounts such as 401(k)s and IRAs, two recessions and higher costs of living. Many older Americans find themselves forced to work well into their golden years. In 2017 it was reported that over 9 million seniors 65 and older continue to work compared to 4 million in 2000. For older Americans, the fear of death often pales in comparison to outliving their money.
The good news is despite numerous product changes, millions of seniors stand to benefit using a reverse mortgage to…
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For the last ten years a small, well-worn booklet. “As a man Thinketh” has taken residence on my desk. A classic considered one of the seminal works of the self-help movement. Originally published in 1903 by British philosophical writer James Allen, this modest treatise focuses on the power of our thoughts to shape our present circumstance, just as a gardener carefully cultivates and shapes his crop. Beyond forces outside of our control, much of our success relies upon our mental state of mind. Yesterday on HECMWorld.com Norcom’s John Luddy aptly put it this way. “If you’re not happy it’s hard to sell. It’s going to be hard to make your clients happy if you’re not happy.”
With that in mind here are some nuggets of wisdom each of us should ponder, take to heart, and perhaps even better, act upon. Please note that at the time this piece was written the word man was used as a generic reference to humankind…
It’s difficult to sell from a position of unhappiness. John shares some practical ways to get your mindset back on track…
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
Some young people think older adults have it good: they’ve saved and invested their money, own a home, and can now simply retire and relax. Meanwhile, the younger set has to work, work, work. Except when they’re texting. Or watching cat videos. Or out getting a super-sized coffee drink. But we digress.
Many Millennials and Gen Zers are sincere, hard-working people just like their predecessors, look forward to getting ahead, and love elders — these folks are often their grandparents, after all. And while some seniors may own a house and be able to qualify for a HECM, others are not so fortunate. The last thing they can imagine in their golden years is to have to leave the home they love due to financial constraints. So, for some, the answer is a roommate.
Spanning the Decades
Not just any roommate, however: a youthful one. That’s what a nonagenarian former NYU professor did — not because she needed the money, but because her four-story brownstone is a lot of house for one person. After her grown children moved out and her husband passed away, she began taking in lodgers, to help young people get their feet under them in a notoriously expensive rental market, and also for the company and assistance.
Her current housemate, a 23-year-old artist who just graduated from NYU, lives on the top floor of the house rent-free in exchange for light housework, food shopping, and companionship, such as shared meals. It’s mutually rewarding, and helps stave off loneliness, which is epidemic among the senior population.
Making New Friends at An Older Age
Some people are more comfortable living with their own cohort group, which is why businesses such as Silvernest, an online roommate matching service for older adults, are growing along with the burgeoning elder population. The majority of Silvernest site users are seeking a housemate for financial reasons as much as companionship, but that doesn’t mean the arrangement can’t be beneficial on many levels, says Silvernest CEO Wendi Burkhardt.
While an open mind and open heart are important for home-sharing success, it’s equally crucial that seniors not be naïve about who they welcome into their home, say elder care managers. Some ways to find a suitable housemate include:
Senior Cohousing Comes Into Its Own
Three decades after Danish architect Kathryn McCamant, coauthor of Cohousing: A Contemporary Approach to Housing Ourselves, helped bring the cohousing concept to America, this model has begun to take off for elders.
Cohousing refers to a planned residential community of private homes clustered around shared space. Each attached or single family home has traditional amenities, including a private kitchen. Shared spaces typically feature a common house, which may include a large kitchen and dining area, and recreational spaces. Shared outdoor space may include parking, walkways, and gardens. Neighbors also tend to share resources such as tools and lawnmowers.
While cohousing communities are typically designed for middle-income, multigenerational use, there is a growing need for senior housing for those with more limited resources, notes McCamant, who has designed and built half a dozen such communities for those 55+. Currently, there are thirteen completed senior cohousing communities nationwide, with two more under development and an additional thirteen forming.
A HECM for Purchase might enable a senior or couple to downsize from their larger family home to a cohousing community that meets many of their evolving needs, such as creating a wider network of support.
Maybe even someone who would enjoy watching a cat video now and then..
Download your March 2018 Top 100 Retail HECM Lenders Report Here.
It’s no secret. Industry stakeholders, originators, and pundits have lamented the stagnation of reverse mortgage originations since the housing meltdown of 2009. Certainly we could partially attribute the lack of market expansion to the exit of big bank lenders such as Wells Fargo and Bank of America. We could also point to fewer applicants meeting the requirements entailed in the Financial Assessment. Perhaps more significant are the series of lending ratio or principal limit factor reductions that have closed the door to homeowners seeking to payoff a significant mortgage balance.
While reportedly 10,000 baby boomers retire each day, home values rising, and more retirees are lacking the funds to retire comfortably, fewer are taking a reverse mortgage. This paradox begs further examination.
Perhaps one clue can be found in our industry’s historic response to product changes. For example the…
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Do you ever feel like you’re on an episode of Lost, marooned on an island? Perhaps you find yourself alone most workdays in your office wondering how to attract more potential borrowers while lamenting the fact that fewer applicants may qualify. If so, you’re not alone and most importantly don’t beat yourself up. Instead get out and get connected. I recall one of my favorite scenes from the film Donnie Brasco where Al Pacino introduces Johnny Depp as ‘a friend of mine‘ versus ‘a friend of ours’. What’s the difference? A friend of ours is a made guy…part of the club, a trusted member of the group. A friend of mine has not been vouched for and is not privy to the real goings on of the group.
I was reminded of the power of networking after recently joining a…
You’ve got them near the finish line and suddenly they ‘want to think about it’. What should you do?
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
Aging has become big business — and everyone’s concern.
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