Elder Law Committee MCLE Meeting ARC February 18, 2015

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1 11:45 AM Noon Sign In/Lunch Elder Law Committee MCLE Meeting ARC February 18, :55 AM Noon Welcome/Introductions Pam Terry, Chair Mary Kay Furiasse, Co-Chair Noon 1:00 PM Program An Over view of Some Practical Information Dolores Zimmerman Dolores has been a mortgage loan consultant for 15 years and is a specialist in reverse mortgages. She maintains both state and federal licenses in the industry. Her knowledge and expertise help seniors better understand what a reserve mortgage is and to look at whether or not it is appropriate for their situation. Leonard Sanchez, Director of Business Development & Marketing. Leonard has been with BrightStar Care of DuPage for almost six years along with over 30 years of Fortune 500 corporate & international experience. He is a member of the community previously elected and serving as a Milton Township Trustee Board member (Wheaton/Glen Ellyn). He brings his own personal experience of caring (or his dad and a special needs son over the many years to today's topic. Mr. Sanchez possesses a B.S. from Taylor University and an MBA from Northwestern University. Diane Thorson, Director of Clinical Compliance Diane has key industry contributions, in addition to hospital and agency nursing. Diane has held Director roles with home health & private duty organizations, pediatric clinical specialist and instructor, nurse clinician in Mineral Metabolism/Nephrology at Lurie Children's Hospital and an aging-in-place speaker to various audiences and communities/facilities. Ms. Thorson possesses a BSN in nursing from Valparaiso University along with a MSN from Loyola University. Pam Terry, Law Office of Pamela Terry Pamela Terry is a sole practitioner in Wheaton; her practice concentrates in Real Estate and Elder Law. She is also the owner of Your Estate Coordinators a company that coordinates all aspects of liquidating estates from clearing to closing.

2 2/12/2015 Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home What Are Your Financial Goals? Are you on track to meet your retirement needs and satisfy your wants, now and in the future? A Home Equity Conversion Mortgage (HECM) may help give you the cash you need to meet your goals. Historically, people have sought HECM loans as a way to make ends meet, as they balance the costs of health care, housing and other basic needs in their retirement years. But in today s housing market, it has become more common to see people using them to eliminate their monthly mortgage payments. (Wall Street Journal, June 27, 2010) 1 Explore Your Options Retirement Pros Funding Options Delay retirement or return Continue earning income to pay your to work financial obligations. Cons You may be unable or unwilling to continue working because of poor health or other reasons. Sell your house and downsize You eliminate or reduce your current mortgage payment and maintenance. You may want to stay in your current home. You may still have a mortgage. Closing costs add to the financial burden. Obtain a home equity loan or refinance your existing mortgage You remain in your home. You may be able to lower your monthly mortgage payments and even pay off other debts. You must still pay your monthly mortgage, plus closing costs for the equity loan. Decrease expenses and modify your lifestyle You eliminate unnecessary expenses and reduce your monthly cash outflow. It may be difficult to cut back if you are already living frugally, or you may not want to sacrifice some comforts. Obtain a Home Equity Conversion Mortgage (HECM) You access tax-free cash to pay off your The loan balance grows over time and the mortgage and may have additional funds value of your estate may decrease over for expenses or financial goals. 1 time. 1 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits. 2 1

3 2/12/2015 A HECM Loan Defined? A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan which enables you to access a portion of your home s equity to obtain tax-free 1 funds without having to make monthly mortgage payments. 2 If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to: Pay off your existing mortgage Continue to live in your home and maintain the title Pay off medical bills, vehicle loans or other debts Improve your monthly cash flow Fund necessary home repairs or renovations Build a safety net for unplanned expenses 1 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits. 2 You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. 3 A Few of the Loan Benefits Eliminates your existing monthly mortgage payments 1 You can stay in your home and maintain the title Loan proceeds are tax-free and can be used any way you choose 2 Heirs inherit any remaining equity after paying off the HECM loan The HECM loan is FHA insured 1 You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. 2 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits. 4 Eligibility To be eligible for a HECM loan, some key requirements are: The youngest borrower must be at least 62 years of age You must live in your home as your primary residence and have sufficient equity Be able to pay off your existing mortgage using the HECM loan proceeds Live in a single family, two to four unit 1 owner-occupied home, townhouse, approved condominium or manufactured home Requirements In addition to eligibility, you must meet the following conditions to obtain a HECM loan: Complete a HUD approved counseling session Maintain your home according to FHA requirements Continue to pay property taxes and homeowners insurance 1 Not applicable to HECM for Purchase 5 2

4 2/12/2015 Loan Costs No hidden fees all costs disclosed to you up front! Most fees can be financed into the loan = no out-of-pocket lender costs 1 Loan origination fees capped by HUD Appraisal, credit report, title and escrow fees FHA mortgage insurance premium (MIP) 1 Except for HUD Counseling 6 Safeguards Federal Housing Administration (FHA) Insured HECM loans are FHA insured. You are always protected against lender insolvency and can expect to receive your proceeds. Mandatory Mortgage Insurance HECM loans are required by U.S. Department of Housing and Urban Development (HUD) to charge a mandatory mortgage insurance. This insurance protects the borrower and their heirs in the event the loan balance is higher than the home s value at the time of sale. Independent Counseling Independent counselors which are approved by HUD provide you with objective information, and help you understand the process. Capped Interest Rates If your loan has an adjustable interest rate, there is a limit on how much some interest rates can change during a specific period of time. Full Disclosure of Costs Lenders are required to disclose your estimated loan costs and fees upfront through a Good Faith Estimate (GFE). 7 Types of Loans HECM Loan The HECM is available as either an adjustable- or fixed-rate loan. With the adjustable rate, the rate is adjusted monthly based on the LIBOR (London Inter Bank Offered Rate). The fixed-rate HECM maintains the same interest rate over the life of the loan. HECM for Purchase Loan The HECM for Purchase can help homeowners buy their next home without having to make monthly mortgage payments. This loan enables homeowners to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long you live in the home or what happens to your home s value, you only make one, initial investment (down payment) towards the purchase. 8 3

5 2/12/2015 Disbursement Options With a fixed-rate HECM loan, you can receive the cash in a lump sum. With an adjustable-rate HECM loan, you can select: Tenure Term Line of Credit Lump Sum Modified Tenure Modified Term The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. Contact Dolores Zimmerman for detailed program terms at Questions & Answers 10 Dolores Zimmerman Loan Consultant (630) NMLS License # Draper and Kramer Mtg DBA 1 st Advantage Mortgage Dolores Zimmerman (IL: NMLS:218300) is an agent of Draper and Kramer Mortgage Corp., dba 1st Advantage Mortgage (IL:MB NMLS:2551) an Illinois Residential Mortgage Licensee located at 701 E. 22nd St. Suite 125, Lombard, IL Telephone Regulated by IDFPR, 122 S. Michigan Ave., Chicago, IL Telephone Copyright 2014 Draper and Kramer Mortgage Corp. dba 1st Advantage Mortgage. All Rights Reserved. Privacy Policy Licensing NMLS Consumer Access Site Map W A Company Confidential 11 4

6 Presentation to Wheaton, IL February 18, 2015

7 Senior Care Industry Trends 2011 US population 65 and older (seniors) made up 13% of population End of 2011 senior population estimated at 49 million 10,000 people turn 65 daily & trend last 20 years People reaching 65: Average life expectancy is an additional 19 years By 2050 Senior population 88.5 million By 2025 it will grow to neary 72 million Well over twice the number from year % of total US population by 2050 US Census Bureau Population of age 85 and over could grow to nearly 21 million by 2050 In 20 years, the number of people over 100 is expected to be over 500,000

8 Aging in Place Advances in healthcare practices & healthcare related technology Resulting in longer lifespans Many seniors exhibiting a desire to remain in a comfortable, familiar setting during their golden years. According to AARP survey Approximately 89% of seniors want to age in their own homes for as long as possible Aging in place phenomenon has contributed to many seniors citizens seeking ways to maintain their quality of life affordably t2012industrytrends2/15/323 In the past decade, Illinois older population has grown from 1.9 million to 2.2 million. It now represents 17.7% of the population in Illinois. By 2030, it is estimated that the age 60+ population will increase to 3.6 million and will represent 24% of Illinois population.

9 BrightStar Care of DuPage Wheaton, IL Offer a Higher Standard of Care in the industry: Professional, Responsive and caring Home care provider in the industry Medical and non-medical home care and medical staffing national service provider: 280+ locations nationally Staff for Hospice & Palliative Care Continuous Care Private Duty Home Care

10 Core Services Private Duty Home Care- non-medical to skilled nursing Widest range of private duty services available: Simple companion care through medical care: blood draws, infusion therapy, wound care Personal Care, CNAs, LPNs, and RNs Medical Staffing for Communities Hospice & Palliative School nursing Senior Communities Medical Centers/Hospitals Nursing homes/snfs

11 Earned Accreditation & Client Satisfaction: We relentlessly pursue continuous improvement and excellence in our operational and care standards through Joint Commission Accreditation and Press Ganey Client Satisfaction Surveys 9 out of 10 clients recommend BrightStar Care to their family and friends Highest Standard of Care: Our professional Care Team delivers expert, compassionate and personalized care Care Experts: Only BrightStar Care combines industry-leading screening, training & oversight practices

12 Hospice & Palliative Services Geriatric & Pediatrics LPN and RN staffing for continuous care Medication Administration Charting / Documentation Compassionate care to patient and family Extensive experience partnering with hospice organizations

13 What Makes us Different Joint Commission Accredited e.g. similar to a hospital RN oversight on every client Plan of Care & service hours customized to clients needs 24/7 access to Wheaton professional staff Home care services from one hour of service to 24 live in Caregivers, CNAs, LPNs & RNs Experienced staff with one year minimum

14 Home Care Services Companion Care Meal preparation and diet management Transportation Bath Visits Lite housekeeping Medication reminders Personal care & hygiene Respite care Errands & other personal services

15 Medical Services RNs and LPNs Medication set up Staffing Hospice Home Nursing Wound Care Blood draws Injections IV or Infusion Therapy Nurse staffing for schools & Senior communities

16 A Culture of High Quality Care Hiring / Recruiting Face-to-face interviews National Background checks License verification Employee referral program Drug Screening Ongoing Certification & Training Eight hours of orientation On-Site Supervision Dementia training CPR Certification Continuous education: 12 CEs/year

17 Maintaining a High Level of Customer Service Individualized quality Plan of Care Press Ganey Customer Satisfaction survey - quarterly BrightStar Mystery Shops RN supervisory visits to all clients

18 Partnerships / National Accounts

19 Our Team Jonathan Gray, Operations Director Scheduling Coordination CNA, HHA Recruiting Employee Credentialing Billing & Payroll Kelly Honn, BSN Director of Nursing Medical Director Case Management Field staff supervision National Accounts clinical Liaison Clinical Direction Medical Staffing Network Diane Thorson, MSN Regulatory compliance Case Management Clinical Direction Key Account Clinical Liaison Performance Improvement Jim Flickinger, Owner & President Overall Business Direction Marketing/Sales Co-Founder Leonard Sanchez, Marketing Director Business Development/sales Marketing Management Digital Marketing

20 February 18, 2015 BrightStar Care of DuPage 416 East Roosevelt Road, Suite 105 Wheaton, IL /7 Office (630)