Everything You Now Need To Know About Reverse Mortgages

1y ago
35 Views
2 Downloads
7.27 MB
113 Pages
Last View : 7d ago
Last Download : 4m ago
Upload by : Melina Bettis
Transcription

PLEASE DETACH THIS FORM AND RETURN TO CLE STAFF AT THE ENDOF PROGRAMEVALUATION FORMIn order for us to improve our continuing legal education programs, we need your input.Please complete this evaluation form and place it in the box provided at the registrationdesk at the end of the session. You may also mail the form to CLE Director, NYCLA, and 14Vesey Street, New York, NY 10007.Everything You NOW Need to Know about Reverse Mortgages:Learn the Updated Rules and their Use as Financial Planning ToolsWednesday, February 12, 2014 6:00 PM – 8:30 PMI.Please rate each speaker in this session on a scale of 1 - 4(1 Poor; 2 Fair; 3 Good; 4 Excellent)PresentationContentWritten MaterialsKevin McMullenAlfie SchlossII.Program Rating:1. What is your overall rating for this course? Excellent Good Fair Poor Suggestions/Comments:A.Length of course:Too Long Too Short Just RightB.Scheduling of course should be: Earlier Later Just Right(please turn page over)2. How did you find the program facilities?Excellent Good Fair Poor Comments:PLEASE TURN PAGE OVER

PLEASE DETACH THIS FORM AND RETURN TO CLE STAFF AT THE ENDOF PROGRAM3. How do you rate the technology used during the presentation?Excellent Good Fair Poor Comments:4. Why did you choose to attend this course? (Check all that apply)Please Turn OverNeed the MCLE CreditsFacultyTopics CoveredOther (please specify)5. How did you learn about this course? (Check all that apply)NYCLA FlyerNYCLA PostcardCLE CatalogNYCLA WebsiteNew York Law Journal WebsiteOther (please specify)NYCLA NewsletterNYCLA CLE Email6. What are the most important factors in deciding which CLE courses to attend(Please rate the factors 1- 5, 1 being the most important).CostSubject matterLocationDate and TimeProviderOrganization of which you are a memberOther6. Are you a member of NYCLA?IIIYesNoIf NYCLA were creating a CLE program specifically tailored to your practice needs, whattopics or issues would you want to see presented?

N S T I T U T EIC L EN Y C L AE VERYTHING Y OU NOWN EED TO K NOW ABOUTR EVERSE M ORTGAGES :L EARN THE U PDATEDR ULES AND T HEIR U SEAS F INANCIAL P LANNINGT OOLSPrepared in connection with a Continuing Legal Education course presentedat New York County Lawyers’ Association, 14 Vesey Street, New York, NYscheduled for February 12, 2014Faculty: Alfie Schloss, Associated Mortgage Bankers (AMB);Kevin McMullen, Esq.This course has been approved in accordance with the requirements of the New York State Continuing Legal EducationBoard for a maximum of 2.5 Transitional and Non-Transitional credit hours; 1 Skills; 1.5 Professional Practice.This program has been approved by the Board of Continuing Legal education of the Supreme Court of New Jersey for 2.5hours of total CLE credits. Of these, 0 qualify as hours of credit for ethics/professionalism, and 0 qualify as hours of credittoward certification in civil trial law, criminal law, workers compensation law and/or matrimonial law.ACCREDITED PROVIDER STATUS: NYCLA’s CLE Institute is currently certified as an Accredited Provider ofcontinuing legal education in the States of New York and New Jersey.

Information Regarding CLE Credits and CertificationEverything You NOW Need to Know about Reverse Mortgages: Learn theUpdated Rules and their Use as Fiscal Planning ToolsWednesday, February 12, 2014 6:00 PM to 8:30 PMThe New York State CLE Board Regulations require all accredited CLEproviders to provide documentation that CLE course attendees are, in fact,present during the course. Please review the following NYCLA rules forMCLE credit allocation and certificate distribution.i.You must sign-in and note the time of arrival to receive yourcourse materials and receive MCLE credit. The time will beverified by the Program Assistant.ii.You will receive your MCLE certificate as you exit the room atthe end of the course. The certificates will bear your name andwill be arranged in alphabetical order on the tables directly outsidethe auditorium.iii.If you arrive after the course has begun, you must sign-in and notethe time of your arrival. The time will be verified by the ProgramAssistant. If it has been determined that you will still receiveeducational value by attending a portion of the program, you willreceive a pro-rated CLE certificate.iv.Please note: We can only certify MCLE credit for the actual timeyou are in attendance. If you leave before the end of the course,you must sign-out and enter the time you are leaving. The time willbe verified by the Program Assistant. Again, if it has beendetermined that you received educational value from attending aportion of the program, your CLE credits will be pro-rated and thecertificate will be mailed to you within one week.v.If you leave early and do not sign out, we will assume that you leftat the midpoint of the course. If it has been determined that youreceived educational value from the portion of the program youattended, we will pro-rate the credits accordingly, unless you canprovide verification of course completion. Your certificate willbe mailed to you within one week.Thank you for choosing NYCLA as your CLE provider!

New York County Lawyers’ AssociationContinuing Legal Education Institute14 Vesey Street, New York, N.Y. 10007 (212) 267-6646Everything You NOW Need to Know About Reverse Mortgages: Learn theUpdated Rules and their Use as Financial Planning ToolsWednesday, February 12, 2014; 6:00 PM to 8:30 PMModerator:Kevin McMullen, Esq.Faculty:Alfie Schloss, Associated Mortgage Bankers (AMB);Kevin McMullen, Esq.AGENDA5:30 PM – 6:00 PMRegistration6:00 PM – 6:10 PMIntroductions and Opening Remarks6:10 PM – 8:00 PMDiscussion of Reverse MortgagesAlfie Schloss, Associated Mortgage Bankers (AMB)8:00 PM – 8:30 PMA Case StudyKevin McMullen, Esq.

NY County Lawyers – Wednesday Feb. 12 – 2-hr. Update on Reverse Mortgage – Outline of curriculumBy Alfie Schloss NMLS ID 404064Reverse Mortgage Loan OriginatorAssociated Mortgage Bankers Reverse Mortgage SpecialistsTel: 914-275-3361I.History and Background of Reverse Mortgagesa. 1980’s Beginning’s as predatory loanb. 1989 Congressional hearingsc. 1991 HECM Program is enacted by HR 255II.What is a reverse mortgage?a. HECM vs. Proprietary loansb. HUD’s involvement and mortgage insurancec. Eligibility – Youngest borrower must be 62 at time of closingd. Options available, Fixed & Libore. How can one receive funds? New limits on initial draws.f. Non-recourse loans with no personal liabilityg. What can the funds be used for? What can’t they be used for?h. Typical scenariosi. Non-Borrowing Spouse restrictions.III.The process of getting a reverse mortgagea. HUD required counselingb. Applicationc. HUD appraisald. Eligible properties – HUD does not provide product for Coops or Non-FHA approvedCondos.e. Trusts and Life Estates. We allow irrevocable trusts where in the beneficiary does nothave control of the funds.f. Underwritingg. Closing and three day right of rescissionh. Fundingi. ServicingIV.Sample loans review and discussion.V.Pitfalls of reverse mortgagesa. Who should not do one.b. What are some alternative’s to reverse mortgages?VI.Advanced uses of reverse mortgagesa. Standby reverse mortgage for higher wealth individualsb. Delaying social security benefits until age 70 to maximize annual payouts.Questions?

A Capsule History of Reverse Mortgages in the United States1961First reverse mortgage loan made by Nelson Haynes ofDeering Savings & Loan (Portland, ME) to Nellie Young, thewidow of his high school football coach1963First property tax deferral program offered in Oregon,financed through Public Employees Retirement Fund1970Survey research on a "housing annuity plan" conducted inLos Angeles by Yung-Ping Chen of UCLA1975Technical monograph on "Creating New Financial Instrumentsfor the Aged" authored by Jack M. Guttentag of The WhartonSchool1977First RM loan program, "Equi-Pay", introduced by Arlo SmithofBroadview Savings & Loan in Independence, OH1978"Reverse Mortgage Study Project" funded byWisconsin Bureau on Aging, directed by Ken ScholenFirst statewide deferred payment loan program offered by WIDept of Local Affairs and Development, designed by William Perkins1979First national "Reverse Mortgage Development Conference"sponsored by WI Bureau on Aging in Madison, WI on May 21-22San Francisco Development Fund's "Reverse Annuity Mortgage(RAM)" program funded by Federal Home Loan Bank Board,foundations, and WI Bureau on Aging; directed by Don Ralya1980Unlocking Home Equity for the Elderly, edited by Ken Scholenand Yung-Ping Chen, published by Ballinger (Cambridge, MA)Two-year "Home Equity Conversion Project" funded by U.S.Administration on Aging, directed by Ken Scholen

FHA reverse mortgage insurance proposal by Ken Scholenendorsed by housing pre-conference to 1981 White HouseConference on Aging1981National Center for Home Equity Conversion (NCHEC)incorporated as independent, non-profit organization inMadison, WI; directed by Ken ScholenU. S. House Select Committee on Aging hears first Congressional testimony on reverse mortgages, by Ken ScholenWhite House Conference on Aging endorses proposal for FHARM insurance, recommending that "the FHA should develop aninsurance program for reverse mortgage loans"Newsweek, Time, U.S. News, Good Morning Americaprovidefirst national media exposure for reverse mortgagesSan Francisco RAM program closes first loans1982"National Potential for Home Equity Conversion" authored byBruce Jacobs (University of Rochester)San Francisco RAM program expands to new sites in California,directed by Bronwyn BellingU. S. Administration on Aging funds NCHEC research on federalissues - including FHA RM insuranceU. S. Senate Special Committee on Aging stages first hearing onreverse mortgages; staffed by John Rother; testimony by KenScholen, Jack Guttentag, Maurice Weinrobe, James FirmanU. S. Senate Special Committee on Aging issues report citingneed for reverse mortgage insuranceGarn-St. Germain Depository Institutions Act clears regulatorypath for reverse mortgages; first federal statutory recognition ofreverse mortgages1983Federal Council on Aging supports proposal for FHA reversemortgage insurance

FHA reverse mortgage insurance demonstration programproposed by U.S. Department of Housing and Urban Development (HUD) in housing bill"RMs: Problems and Prospects for a Secondary Market and anExamination of Mortgage Guaranty Insurance", authored byMaurice Weinrobe (Clark University)"National Development Conference" sponsored by NCHEC withHUD support in Washington, DC; greetings sent by PresidentReagan and Representative Claude PepperU.S. Administration on Aging funds NCHEC information andtraining project"Home Equity Financing of Long-Term Care for the Elderly" byBruce Jacobs (University of Rochester) and William Weissert(Urban Institute)FHA insurance proposal by Sen John Heinz adopted by Senate;House-Senate conference committee mandates HUD study1984First open-ended, risk-pooling reverse mortgage offered byAmerican Homestead in New JerseySF RAM program and NCHEC provide training and technicalassistance to new reverse mortgage programs in AZ, MA, NY, WIPrudential-Bache announces marketing agreement withAmerican HomesteadSocial Security Administration releases policy memo on treatment of income from HEC plans1985HUD sponsors conference on home equity conversionU. S. Senate & House Aging Committees sponsor joint briefingsession for Congressional staffers, moderated by Ken ScholenLine-of-credit development project initiated by United SeniorsHealth Cooperative (DC), directed by Bronwyn BellingFirst "split-term" RM offered by CT Housing Finance Agency,designed by Stuart Jennings and Arnold Pritchard

1986"Home Equity Information Center" established by AARP,directed by Katrinka Smith SloanAmerican Homestead expands into CT, OH, and PACalifornia Home Equity Conversion Coalition established byRAM program counselorsMA Elderly Equity Program funded by Commonwealth ofMassachusetts, directed by Len RaymondHUD releases study opposing a federal reverse mortgageinsurance demonstrationAARP releases analysis by Ken Scholen critiquing HUD study;AARP urges enactment of federal RM insurance demo1987NCHEC completes studies on home equity financing of long-termcare for Minnesota and ConnecticutU.S. House Ways and Means Committee hears testimony onHEC and long-term care by James Firman (United Seniors) andKen Scholen (NCHEC)Congress passes FHA reverse mortgage insurance proposalAmerican Homestead expands into DE, MD, and VA"Home-Made Money: A Consumer Guide to HEC" published byAARP, authored by Ken Scholen1988National survey of members' reverse mortgage needs andpreferences by AARPFHA reverse mortgage insurance legislation signed by PresidentReagan on 2/5/88; Judith V. May named to develop programHUD announces HECM development team including EdwardSzymanoski, Jr, Patrick Quinton, Donald Alexander, andMary Kay Roma"Innovation in Hone Equity Conversion" conference sponsoredby AARP; attracts 200 participants from 25 states

New plan announced by Capital Holding Corporation (Louisville,KY); 10th largest investor-owned insurance company in America;"Home Income Security Plan" first offered in KY, MD, and VAFirst line-of-credit reverse mortgage developed by VA HousingDevelopment AuthorityAmerican Homestead expands into CAProvidential Home Income Plan (San Francisco) offersshared-appreciation plan throughout CAHUD releases proposed regulations for FHA reverse mortgageinsurance programFannie Mae announces intention to purchase reverse mortgagesinsured by FHAU. S. Administration on Aging announces cooperative agreementwith HUD to sponsor training of reverse mortgage counselors1989"A Financial Guide to Reverse Mortgages" by Ken Scholen forNCHEC introduces total loan cost rate method for analyzing costsHUD selects 50 lenders by lottery to make first FHA-insured reversemortgagesSoftware for determining reverse mortgage loan advancesdeveloped by FHA and made available to the publicWendover Funding (NC) announces program for servicingFHA-insured reverse mortgagesHUD releases "Home Equity Conversion Mortgage" (HECM)program handbook (# 4235.1)Fourteen 2-day HECM counselor training sessions conducted byBronwyn Belling (AARP) and Ken Scholen (NCHEC) for FHACapital Holding expands into CA and FLFNMA announces policies for purchasing FHA-insured (HECM)reverse mortgages

First FHA-insured HECM made to Marjorie Mason of Fairway,KS by the James B Nutter CoNational Center for Home Equity Conversion (NCHEC) movesfrom Madison, WI to Marshall, MN1990AARP releases FHA Counselor Training and Reference Manual,by Bronwyn Belling and Ken ScholenAmerican Homestead and Providential suspend lending asrecession and falling appreciation expectations dry up debtsources for new loansFourteen more 2-day counselor training sessions conducted byBronwyn Belling (AARP) and Ken Scholen (NCHEC) for HUD"Reverse Angle" newsletter published for FHA counselors byAARP Home Equity Information CenterCongress increases FHA insurance authority to 25,000 loansby 9/31/95; requires disclosure of total loan cost & developmentof equity reserve optionAARP publishes "Model State Law on Reverse Mortgages"HUD publishes "FHA Home Equity Conversion InsuranceDemonstration: A Model to Calculate Borrower Payments andInsurance Risk," by Edward Szymanoski Jr.1991Los Angeles County Employees Retirement Association sponsorsinformation seminar on reverse mortgages as a potential fundinvestment and member benefitAARP publishes 3rd edition of "Home-Made Money" by KenScholen; distribution tops 250,000New consumer guide developed by Federal Trade Commissionin partnership with NCHEC and AARPHUD publishes new regulations making reverse mortgageinsurance available to all FHA lendersInterim report on FHA program by Judith V. May

Retirement Income On The House: Cashing In On YourHome With A "Reverse" Mortgage, 352-page book by KenScholen, preface by Jane Bryant Quinn published by NCHECNational Leadership Conference on Home Equity Conversionsponsored by AARP (9/91)First lifetime reverse mortgage programs proposed by PeterMazonas of Homefirst (San Francisco) and Robert Bachman ofHome Equity Partners (Irvine, CA)FNMA expands funding for expanded HECM program; developscomprehensive "Instruction Package"Wendover Funding announces correspondent program and"starter kit" for lendersFirst multi-state HECM lending programs developed by International Mortgage (DE, DC, MD, PA, VA, WV), Directors Mortgage(AZ, CA, NV), and ARCS Mortgage (CA, HI, NY, OR, WA)1992Capital Holding Corporation airs 60-second and 120-secondprime-time network television ads in CA and FL for its"Homearnings" planInitial public stock offering by Providential Home Income Planattracts strong investor interestAARP publishes 79-page discussion paper on reverse mortgagecounseling by Ken ScholenAARP releases videotape for counselor training written andnarrated by Ken ScholenU. S. Securities & Exchange Commission issues directiveprohibiting interest accrual in reverse mortgage accountingU. S. Securities & Exchange Commission rescinds previousdirective; issues directive on effective yield method for reversemortgage accountingAARP sponsors community coalition-building seminars insupport of HECM development in OH, WI, IA, NY, NJ, PA, IL

Retirement Income On The House: Cashing In On YourHome With A "Reverse" Mortgage named best book of 1992on financial services for the elderly by the National Associationof State Units on Aging (NASUA)HECM preliminary evaluation released by HUD1993Transamerica announces reverse mortgage product includingdeferred annuity from MetLifeFannie Mae convenes roundtable on developing a conventionalreverse mortgageCapital Holding discontinues "Homearnings" planNCHEC prepares report on taxation of reverse mortgagetransactions for AARPHome Equity Partners (Irvine, CA) & Union Labor Life announcenew "Freedom" plan including optional immediate annuity from MetLifeWendover convenes 2-day conference of HECM originatorsAARP sponsors community seminars in support of HECMprogram development in CA, LA, MI, & MSFannie Mae initiates series of information sessions for financialplanners and elderlaw attorneysAndrus Gerontology Center (USC) convenes national teleconference on reverse mortgagesNational Center for Home Equity Conversion (NCHEC) movesfrom Marshall, MN to Apple Valley, MNAt year's end, the HECM program is all states except AK, SD,& TX); Unity Mortgage offers it in 25 states; Senior Income in14 states; Directors Mortgage in 14 states; Amerifirst Mortgage in 9states; ARCS Mortgage in 6 states; & International Mortgage in 4 states1994Household Senior Services offers "Ever Yours" creditline reversemortgage in FL, GA, IL, KY, MD, MI, OH, and VA

Congress enacts "total loan cost rate" disclosure requirementfor all reverse mortgages; Federal Reserve publishes proposedregulationsNCHEC prepares report on "Reversing Foreclosures" for AARPNew York rescinds mortgage tax on reverse mortgagesU. S. Court of Appeals (5th Circuit; # 93-8170; First Gibralter V.Morales) removes legal barrier to RM lending in Texas; Rep.Gonzales legislates statutory override of court decisionCA Public Employees Retirement System (CALPERS) initiatesstudy of reverse mortgage investmentTransamerica introduces creditline plan and expands into NY,NJ, PA, and CTAt year's end, Unity Mortgage is offering the HECM in 42 statesand Director's Mortgage has merged with Norwest Mortgage1995HUD releases "Evaluation of the Home Equity ConversionMortgage Insurance Demonstration"HUD releases first major revision of HECM handbook 4235.1HUD approves direct endorsement processing of HECM loansNCHEC publishes Your New Retirement Nest Egg:A Consumer Guide to the New Reverse Mortgages by KenScholen, 336 pagesAARP publishes 5th edition of "Home-Made Money" by KenScholen; distribution tops 400,000HECM program lapses at end of federal fiscal yearAARP sponsors national conference on reverse mortgagesin MD on 11/14-15Fannie Mae announces "HomeKeeper" plan; media coverageincludes front-page, above-the-fold article in USA TodayFHA Commissioner’s Award presented by Nicolas Retsinas toKen Scholen for his work on reverse mortgages

1996HECM program re-authorized on January 26, 1996Fannie Mae begins lender training for "Home Keeper"NCHEC issues Second Edition of Your New Retirement NestEgg: A Consumer Guide to the New Reverse Mortgagesby Ken Scholen, 352 pagesHartford Life tests annuity complement to HECM and FannieMae reverse mortgagesHUD initiates counselor training via satellite TV1997AARP releases consumer videotapes written by Ken Scholenfeaturing Scholen and Bronwyn BellingAARP sponsors HUD counselor training via satellite TV featuringBelling and ScholenReferral fee scams denounced by AARP, HUD, Fannie MaeHousehold Senior Services discontinues "Forever Yours" planAARP announces counselor support fund capitalized by HUDand Fannie MaeNCHEC initiates "preferred" lender and counselor program andreleases "Reverse Mortgage Counselor" softwareIbis Software (SF) releases "Reverse Mortgage Originator"Texas approves referendum to permit RMs, but technical errorsmake impact uncertain, problematicAARP sponsors national reverse mortgage leadership roundtable and conferenceNational Reverse Mortgage Lenders Association (NRMLA)organized by Jeffrey Taylor with Peter Bell as staff1998NCHEC circulates discussion papers on "Strengthening CostDisclosures on Reverse Mortgages" by Ken Scholen

AARP releases "HECM Training-in-a-Box" including videotapes,workbook, HECM handbook, and counseling manualFannie Mae conducts market research to identify reversemortgage market segmentsNCHEC publishes "Reverse Mortgages for Beginners:A Consumer Guide to Every Homeowner’s RetirementNest Egg," 132 pagesNCHEC establishes websiteTransamerica HomeFirst (SF) discontinues originating itsproprietary "HouseMoney" loans and servicing new HECMand HomeKeeper loansFederal Reserve clarifies inclusion of annuities in TALCdisclosures1999Neighborhood Reinvestment Corporation (NRC) providesHECM training in cooperation with AARPTexas approves reverse mortgage lending in statewidereferendum but prohibits creditline choices preferred bymost consumersFannie Mae announce new consumer protections in5/22 lender letterNRMLA and AARP support absolute limit on originationfees, refinancing reforms, and research on a single national203b limitAARP initiates test of HECM counseling by telephoneand develops reverse mortgage counselor exam incooperation with HUD, Fannie Mae, and NRMLA2000First national reverse mortgage counseling exam istaken by 425 counselors in 43 statesNRC provides 2-day HECM training in Atlanta, Minneapolis,Oakland, Tampa, New Orleans, and San Antonio

AARP completes "Model Specifications for ComparingReverse Mortgages;" Financial Freedom and Fannie Maeagree to develop new software implementing the specificationsCongress approves absolute limit on origination fees, refinancing reforms, and research on a single national 203b limitFannie Mae discontinues "equity share" pricing optionAARP Foundation selects 30 HECM counselors to participatein HUD-supported pilot "telecounseling" projectFinancial Freedom becomes largest reverse mortgageoriginator via merger with Unity Mortgage2001AARP releases new 68-page consumer guide, createsnew reverse mortgage portal at www.aarp.org/revmort/,announces new tollfree consumer infoline and availabilityof HECM counseling by telephoneFannie Mae announces it will waive the equity share feeon all loans in its Home Keeper portfolioFinancial Freedom releases counseling software meetingAARP model specifications2008Index for loan rate is changed to the 1-month Libor rate from the 1-year treasury2009Record volume is achieved as over 100,000 new loans are fundedHUD increases annual Mortgage Insurance Premium from .50% to 1.25% asthere is concern about much higher risk2010HUD introduces the HECM SAVER a version of the loan that offers a lowermortgage insurance cost. The HECM for Purchase is introduced allowing ahome to be purchased using a HECM loan2011Bank of America and Wells Fargo the two largest HECM Originators leave theindustry.

2012MetLife becomes the number one lender and soon thereafter exits the bankingand mortgage industry. Many new lenders enter the space, some of whom weresub-prime lenders and the industry as a whole becomes more predatory. Theemphasis shifts from the majority of loans being HECM Libor loans where theborrowers have a line of credit or monthly income from their loan to the moreprofitable “Fixed Rate” reverse mortgage that requires borrowers to cash out.Over 70% of all reverse mortgages are now fixed rate loans and there is worrythat this will lead to much higher default levels. 9% of all HECM loans arecurrently in default.As a result, there are now moves by FHA/HUD being contemplated (HUD Hasannounced it will be making changes to the program within the next six months)and the CFPB is investigating how to stem this tide.2013Effective October 1, 2013 HUD issued a series of Mortgagee letters to shore upthe HECM program, reduce their risk and put the program on a better financialfooting. To reduce risk of Tax and Insurance defaults by borrowers, HUDreduced the available principal limit on HECM loans by approximately 15%. Tofurther reduce misuse of the program HUD has limited the initial draw availableduring the first year to 60% of the available principal limit. If mandatoryobligations are beyond 60% of available principal limit, the upfront mortgageinsurance premium is increased from .5% to 2.5%. The borrower is also allowedto cash out 10% above the mandatory obligations up to the available principallimit.2014Effective sometime in April (Date TBD), HUD will begin requiring a financialassessment of all borrowers to determine their ability to afford living in the homeand make their tax and insurance payments. There may also be a requirementthat homeowners who have a history of late payments on taxes and or insurancebe required to escrow funds from the available principal limit to be available inthe event that taxes or insurance payments are not made in a timely fashion.Stay Tuned for more clarity in April.In the second quarter of 2014, it is expected that proprietary reverse mortgageproducts (not insured by HUD) will again become available. The new loans willprovide reverse mortgage lending on high value homes (in excess of the 625,500 HUD limit), non-FHA approved Condos, and second homes.

Reverse Mortgage Retirement PlanningStrategies For ProfessionalsPresented by Alfie Schloss – NMLS ID 404064Reverse Mortgage Loan OriginatorAssociated Mortgage Bankers914-275-3361aschloss@ambmortgage.comFor business and professional use only. Not for consumer distribution.

Today’s Agenda Reverse Mortgage Industry Overview Reverse Mortgage Product Overview Reverse Mortgage Retirement Planning StrategiesFor business and professional use only. Not for consumer distribution.2

RecordVolumesHistorical PerspectiveThe industry is relatively young,with the first Home EquityConversion Mortgage (HECM)loan closed in 1989. An industryassociation, the NationalReverse Mortgage LendersAssociation (NRMLA), wasformed in 1997, and theintroduction of independentcounseling by the Association ofAmerican Retired Persons(AARP), a vested party fromearly on, occurred in 2002.NRMLAIs Founded1997CounselingOffered by 01Jumbo ReverseMortgagesSource: National Center for Home EquityConversion Mortgage (NCHEC)HECMs in allstates except(AK, SD & TX)For business and professional use only. Not for consumer distribution.3

Potential Market for Reverse Mortgages24 million households with residents 60 years of age or older with less than 2% of eligible households having a reverse mortgage.For business and professional use only. Not for consumer distribution.4

Excerpted from: Tapping Home Equity in Retirement: The MetLife Study on the Changing Role of Home Equity and Reverse Mortgages, June 2009.For business and professional use only. Not for consumer distribution.5

HECM Product Basics All borrowers must be 62 (minimum age) and a citizen or a legalresident of the U.S. All borrowers must be on the deed, with limited exceptions such as lifeestates and trusts Primary, owner-occupied residences only Proceeds are generally tax-free* NO monthly mortgage payment required, as long as the conditions ofthe loan are met. (Interest only accrues on the portion of the loanamount disbursed)*This presentation does not constitute tax advice; borrowers should consult a tax advisor regarding their situation.Appraised property value may affect loan amount. All loans are subject to property approval. Certain conditions andfees may apply.Property taxes and required insurance premiums must still be paid.For business and professional use only. Not for consumer distribution.6

HECM Product Basics(continued) Loan amount is subject to Federal Housing Administration (FHA) 203blimit (National limit of 625,500) All borrowers must receive independent counseling; lender mustprovide a list of U.S. Department of Housing and Urban Development(HUD)-approved counseling agencies to borrower HECM must be in a first-lien position; reverse mortgage proceedswould first be used to pay off any existing mortgage HECM also takes a second position so no additional borrowing ispossible as long as the loan is not repaidFor business and professional use only. Not for consumer distribution.7

HECM 60 In 2013, HUD was allowed by Congress to re-engineer the HECMloan program in an effort to address varying consumer needs andshore up the Mortgage Insurance Program In October 2013, HUD revamped the program and did away with theHECM Saver and the HECM Standard and replaced them with theHECM 60 LIBOR and HECM 60 FIXED Required up-front costs are still reduced as compared to the

NY County Lawyers - Wednesday Feb. 12 - 2-hr. Update on Reverse Mortgage - Outline of curriculum By Alfie Schloss NMLS ID 404064 Reverse Mortgage Loan Originator Associated Mortgage Bankers Reverse Mortgage Specialists Tel: 914-275-3361 I. History and Background of Reverse Mortgages a. 1980's Beginning's as predatory loan b.

Related Documents:

EVERYTHING YOU NEED FITNESS GUIDE Lays out all the fitness information you need to get results with the 10-Minute Trainer workouts. EVERYTHING YOU NEED NUTRITION GUIDE If you want great results, you need to eat healthy. This guide contains a recipe booklet of tasty, heal

work/products (Beading, Candles, Carving, Food Products, Soap, Weaving, etc.) ⃝I understand that if my work contains Indigenous visual representation that it is a reflection of the Indigenous culture of my native region. ⃝To the best of my knowledge, my work/products fall within Craft Council standards and expectations with respect to

You've taught me everything I need to know More than a family, more than a home You've taught me everything I need to know You've taught me everything I need to know Like you Did Aidan Mountford Once yours now my mug Old coffee stains still in the rug When I walk through these halls Feels like you're still around But when I open my eyes

GRE Geometry - Everything you need to know 500 videos 600 practice questions step-by-step study guide All you need. All for free . If you enjoy this unique learning format, let us know, and we'll add similar resources to our SlideShare page GRE Geometry - Everything you need to know .

Institute Chair Professor, Indian Institute of Technology, Kanpur. 09/11/2021 8 Careers in Science & Engineering Everything You Need to Know November 10, 2021 18:00-19:00 IST . Careers in Science and Engineering: Everything that You Need to Know Presentation slides are available now! The edited recording will be made available as soon as .

Everything's alright, yes. Everything's alright, yes. MARY MAGDALENE Sleep and I shall soothe you, calm you and anoint you – Myrrh for your hot forehead. Oh, then you'll feel Everything's alright, yes, everything's fine, And it's cool and the ointment's sweet For the fire in your head and feet. Close your eyes, close your eyes, And relax.

If you think you don't need this, consult a cryptographer. He'll tell you that you're wrong. DO: Verify the authenticity of your encrypted data before you decrypt it. Colin Percival Tarsnap cperciva@tarsnap.com Everything you need to know about cryptography in 1 hour

EVERYTHING YOU NEED WHEN YOU NEED IT We offer a variety of ready-to-order Sandvik maintenance kits, each one a custom bundle of individual parts that should be replaced at specific intervals**. These kits are the cost-effective way to simplify planning and performing maintenance on your Sandvik equipment. SUPERIOR PERFORMANCE, SUPERIOR RELIABILITY