Your help is wanted



I am asking for your inputs on the type of stories, topics, and discussions you would like to see on future segments of Friday’s Food for Thought. Send your ideas to shannon@reversefocus.com.

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6 comments

Zeinab Salim Donner September 24, 2021 at 7:08 am

How do we as an industry break through the stigma of reverse mortgage? Many borrowers mention “shame” of having to get a reverse mortgage. We need to shift this way of thinking

Reply
Shannon Hicks September 24, 2021 at 10:00 am

Excellent idea Zeinab. Thank you!

Reply
The Positive Realist September 27, 2021 at 12:00 pm

Shannon,

Having someone demonstrate once a month software that can improve our online customer experience would be helpful. This would not be a how to demonstration but rather a heavily result based vlog, lightly demonstrating the software but mainly focused on the output and how it helps in converting a reluctant prospect (or referral source) into a positive one.

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Shannon Hicks September 27, 2021 at 3:41 pm

Thank you PR: We have added this to our list for upcoming episodes.

Reply
guy schwartz September 29, 2021 at 12:25 pm

when is a higher margin better than a lower margin?
is the 5% cap better than the 10% cap
are there jumbo product that have a line of credit feature
would you please review the 95% buyout feature
what happens when a husband and wife get a RM and one passes away and the other one remarries?

This will give you somethings to work on

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James E. Veale, retired CPA October 1, 2021 at 8:03 pm

Guy,

I will answer the last question using a HECM with a case number assigned after 8/3/2014 as the RM, since those rules are national and fairly definitive.

Assuming that the surviving spouse and the decedent were both borrowers and the only borrowers, the HECM would stay in place at the death of the decedent. Upon marriage the new spouse would immediately become an ineligible non-borrowing spouse, since the new spouse was NOT the surviving spouse’s spouse at the time that the HECM closed.

Assuming the decedent was the borrower and the surviving spouse was an eligible non-borrowing spouse at death, the surviving spouse would be eligible to elect to defer the payment of the balance due. If the deferral was in effect, remarrying has no impact on the HECM, since the new spouse is neither a borrower nor a non borrowing spouse. According to HUD regs at 24 CFR 206.3, a non-borrowing spouse is “…the spouse, as defined by the law of the state in which the spouse and borrower reside or the state of celebration, of the HECM borrower at the time of closing and who is also not a borrower.” The surviving spouse was NEVER a borrower and thus the new spouse has absolutely no relationship to the HECM.

If the decedent was the borrower and the surviving spouse was an ineligible surviving spouse, the HECM would mature at the date of the decedent’s death. The payment of the balance due could not be deferred by the election of an ineligible non-borrowing (and surviving) spouse. Upon marriage, the new spouse would have no impact on the HECM and is neither a borrower nor a non-borrowing spouse of any kind.

Assuming the decedent spouse was an eligible (or ineligible) non-borrowing spouse and the surviving spouse was the borrower, nothing occurs when the decedent passes away as to the HECM. The new spouse will be an ineligible non-borrowing spouse.

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