Great Rates. Great Programs. Great Service.

Transcription

1 Presented by: Colleen Moore, CRMP National Reverse Mortgage Director Great Rates. Great Programs. Great Service.

2 What Is A Reverse Mortgage (HECM)? HOME EQUITY CONVERSION MORTGAGE is a mortgage secured by a Deed of Trust and insured by FHA Exclusively for 62+ Available for all residential properties (SFR, Approved condos, 2-4 and Mfg homes) THE MOST FLEXIBLE INSTRUMENT ON THE MARKET! (You will become a huge resource)

3 Test Your Knowledge Yes or No Can a borrower marry a 20 year old and allow them to stay in the home if the borrower passes away before the spouse? Will the heirs lose the home if it is upside down? Borrowers can use a reverse mortgage for a 2nd home?

4 What s New This Year? FHA made multiple changes to protect consumers Reinforce Protection for the heirs Non Borrowing Spouse protected Non Borrowing Spouse as young as 18 have rights! Choice of Initial Mortgage Insurance Premium for a reduction in closing costs CA put a cooling off period in place for 7 days Financial Assessment for all borrowers

5 Financial Assessment Made Easy Conventional, FHA and VA loans typically take $2.50 of income for every dollar of mortgage payment. HECM takes $1.00 for every dollar of monthly payments! * NO DTI ratios with a HECM! *After residual and.14 per s/f is satisfied

6 Increase Volume With Minimal Effort..Really? WHY? Lending is tightening each year New and Improved Regulations Economy is recovering and rates will rise Adapt to a new market! HOW? Discover the ABC s of the new Reverse Mortgage Libor Products are not subject to Reg. Z Economy will not impact the New HECM!

7 Who is Your Target Market? Business Partners Real Estate Agents (SRES designation) Financial Advisors and CPA s Estate, Family Law and Elder Attorneys Clients Baby Boomers/Greatest Generation Mid - High Net Worth Borrowers Children and friends of Boomers Associations Senior Advocacy Groups Retirement and Home Care Advisors Real Estate Conventions In Home Care Givers/ Senior Centers Insurance Specialists for Aging in Place

8 A Applications for the New HECM Purchase Security with the Line of Credit/ Complete Flexibility Estate Planning Postpone Social Security Quality of Life/ Early Retirement Financial Planning - Manage a Bear Market - Growth for Long Term or In Home Care - Create a way to not outlive your money

9 Money for Things that Matter Reverse Mortgage Retired couple Limited income Desire to help Family Wanted a better retirement lifestyle A plan for the future Paid Grandson s tuition Enough extra for their bucket list! Provides peace of mind Line of Credit Gives them enough extra cash to extend the life of their savings and investments

10 Don t Outlive Your Assets Pay All Cash $600,000 did not buy the quality of home in the neighborhood she desired. Single Woman in her 60 s Income dropped and rapidly depleting her portfolio Downsized and sold home for 2 million, netted just over$600,000 Or Reverse Mortgage Put 300k down on Condo in a downtown high rise left with over 300k to replenish some of the lost retirement account

11 Test Your Knowledge How many people turn 62 in the United State each week? A. 750 B C D

12 A Continued Anticipate the Wave Traditional lending is getting tighter each year Over 11,000 people per day are turning 62 People are wanting to retire and looking for options People have past credit issues that hinder their finances Today s Boomers are savvy investors and love the flexibility of the HECM Financial Advisors now have the HECM in their planning software!

13 B Become The Solution Clients that anticipate a loss of income in the future Clients that are self-employed or lower income and don t qualify for the home they want. Clients that want to downsize, but can t afford a new home Clients that want to time the market, buy low, sell high Clients that want to retire but want to wait for maximum Social Security Benefits Real Estate Agents that need to expand their market Clients that want to stay in their home Clients that need estate planning strategies/long term care

14 Solution: Buy Low, Sell High Current Home 3400 sf, huge yard, pool and spa and extremely high maintenance. Single woman with a high end home in Del Mar, CA. Substantial income, but concerned with the fact that she would need to downsize in 2-3 years. Did not want to sell in the depressed market. Did not want to have to wait to buy in an inflated market. Solution Reverse Mortgage on her primary and she used the cash to purchase her future home at a hugely discounted price. She put renters into the new home.

15 B Continued Benefits For You & Your Borrowers Huge source of new business, untapped market LIBOR adjustable loans are not under the scrutiny of CFPB Opportunity to create strong business partnerships Downsize without sacrificing quality of life Flexibility for your borrower, change this loan as many times as they choose to! Protect your future and do not outlive your money! You can plan your retirement and enjoy that season. Avoid having your children take care of you in the future!

16 Purchasing Power Without Monthly Mortgage Payments With $250,000 investment, a 70 year old can afford $250,000 Home or $500,000 Home Purchased in Cash Purchased with a HECM for Purchase Loan

17 Why Not This? Current Home Real estate investor. Owned his home nearly free and clear. Always struggled to find and qualify for financing for his investment properties. Bought homes thru his LLC, rehabbed them and then flipped them. Mortgage on his home was less than 50k. Did not want to take money permanently from his primary to invest. Solution Reverse Mortgage Paid off his existing first and then put the other $320k into a line of credit to repeatedly acquire houses.

18 C Create a System for Success Find a good lender to partner with on HECMs Many lenders have a step by step system you can plug into very easily. They will teach you how to get and keep clients They should work with anyone on your staff to help them learn if they choose to do so If you want to just find deals, let your lender do it all for you! You will spend less than half the time on these deals as you do on your regular business!

19 Test Your Knowledge The HECM is gaining popularity in the US, what is the penetration of the eligible population? A. Nearly 12% B. Less than 25% C. Less than 1% D. Just over 10%

20 C Continued Concentrate Your Efforts Capitalize on an untapped market, less than 1%* penetration! Join Networks and Associations and Create Multiple Business partners Boomers are becoming the sandwich generation, give them the answer. Move with the market don t stagnate, strategize! *Extreme Summit statistics

21 The Final C Cash In On The Fastest Growing Market Segment Currently, the LIBOR HECM is not subject to REG Z or the Compensation rules Flexibility to really help your client and still get paid very well. (Pay some or all of their closing costs!) The HECM is the most flexible product in the Financial Marketplace today! Cliché as it seems, this is a Win-Win product!

22 It s An Easy Process Cash In On The Fastest Growing Market Segment Getting involved is easy and may take little additional time or resources from you. LHFS will work with you or for you We provide mortgage professionals with: Turn-key client marketing materials Convenient processing and paperwork support Personal loan advisors for you and your clients Educational resources to help grow your business No Lender overlays, we are the lender! SEE YOU IN ESCROW!!

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24 Thank You! Reverses Made Easy Presented by Colleen Moore, CRMP National Reverse Mortgage Director Tom Conklin, Wholesale Sales Director West Tom Merelli, Wholesale Sales Director Rocky Mtn., Central and East Please note that all information is provided on this web site for informational purposes only, for the exclusive use of licensed mortgage professionals, and not for the general public. This information does not represent an offer or commitment to enter into a loan agreement by Land Home Financial Services, Inc. (LHFS). Not all programs are available in all areas and rates and costs stated do not apply to all loans made. LHFS s underwriting guidelines and program restrictions apply. Terms and programs listed are subject to change without notice. LHFS only conducts business in states approved to. LHFS is an Equal Housing Opportunity Lender. For complete licensing information go to - Company NMLS #1796. Great Rates. Great Programs. Great Service.