The Reverse Review March 2015

WHY YOU SHOULD ENCOURAGE YOUR BORROWERS TO GET ONLINE PG. 24A LOOK AT LENDER-PAID MORTGAGE FEES IN H4P TRANSACTIONS PG. 28+ TONY LOPES SITS DOWN IN OUR HOT SEAT PG. 18

THE REVERSE REVIEW THE REVERSE REVIEW

THE REVERSE REVIEW

THE REVERSE REVIEW E REVERSE RE

VIEW

THE R

EVER

SE R

EVIE

W

INSIDEthis issue

The HECM’S Place in

Elder Law

THE

REVERSEreviewMARCH 2015

2 | TRR

The Reverse ReviewMarch 2015

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* Since December 2011. Based on trailing 12 months’ endorsement volume. Source: Reverse Market Insight.The HomeSafe reverse mortgage is a proprietary product of Urban Financial of America, LLC, and is not affiliated with the Home Equity Conversion Mortgage (HECM) program.For business and professional use only. Not for consumer distribution. NMLS #2285 (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/2285); Corporate Office: 8909 South Yale Avenue, Tulsa, OK 74137. Not all products and options are available in all states. Terms subject to change without notice. ©2014 Urban Financial of America, LLC. All Rights Reserved. CALIFORNIA BUSINESS NAME: URBAN FINANCIAL GROUP OF AMERICA, LLC. NEBRASKA BUSINESS NAME: REVERSE IT! LLC.

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4 | TRR


From the EDITOR

Printer The Ovid Bell Press

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© 2015 Reverse Publishing, LLC All rights reserved. Reproductions or distribution of any materials obtained in the publication without written permission is expressly

prohibited. The views, claims and opinions expressed in article and advertisement herein are not necessarily those of The Reverse Review, its employees, agents or directors. This publication and any references to products or services are provided “as is” without any expressed or implied warranty or term of any kind.

While effort is made to ensure accuracy in the content of the information presented

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JESSICA GEURINShare your ideas with your colleagues and be a part of the solution.Reach out to us at [email protected].

Feedback is very important to us here at The Reverse Review. Send us your thoughts on this issue or comment online for a chance to see your perspective in print.

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Meet the TeamSENIOR PUBLISHERReza Jahangiri

PUBLISHERErik Richard

EDITOR-IN-CHIEFJessica Guerin

CREATIVE DIRECTORTraci Knight

COPY EDITORKersten Deck

MARKETING DIRECTORAlycia Greer

WHY YOU SHOULD ENCOURAGE YOUR BORROWERS TO GET ONLINE PG. 23A LOOK AT LENDER-PAID MORTGAGE FEES IN H4P TRANSACTIONS PG. 25+ TONY LOPES SITS DOWN IN OUR HOT SEAT PG. 16

THE REVERSE REVIEW THE REVERSE REVIEW

THE REVERSE REVIEW

THE REVERSE REVIEW E REVERSE RE

VIEW

THE

REV

ERSE

REV

IEW

INSIDEthis issue

The HECM’S Place in

Elder Law

THE

REVERSEreviewMARCH 2015

MAR. 2015

COVER

HUD’s Kathleen Zadareky talks

about getting the HECM program

back on track, and what it will take for

it to succeed.

A NOTE FROM JESSICA GUERIN

In this month’s edition of TRR, we talk with Kathleen Zadareky, HUD’s deputy assistant secretary of single-family housing. During our conversation about her role at FHA and the agency’s recent HECM policy changes, Zadareky’s passion for her work was readily apparent. The reverse industry is lucky to have such a dedicated, steadfast proponent on its side, one who cares deeply about the success of the program and the seniors who stand to benefit from it.

Now that FHA has nearly completed its program revamp, it’s up to the industry to learn how to adapt. As Zadareky points out, it’s essential that HECM lenders find ways to connect with the right kind of senior, one who can successfully utilize this unique financial product to support their

retirement. This, she says, will be the key to the program’s long-term sustainability.

It will be a challenge for the industry to reach this new audience, and part of that puzzle includes working with referral partners—including Realtors, financial planners and, as we discuss in this month’s Spotlight story, elder law attorneys.

While the challenge is great, many believe that the product’s promise is even greater. Hopefully, with people like Zadareky on our side, the industry can work together to propel the product forward.


table of contents

TRR 3.15IN THIS ISSUE...

21 LAURIE DENKER MacNAUGHTONOriginating

23 MICHAEL D. KENTOriginating

27CY BRINNTech

07 | Movers & ShakersThe latest developments incompanies across the reverse space

09 | Industry NewsHeadlining stories of the past monthREVERSE MORTGAGE DAILY

10 | StatsThe industry’s latest stats and rankings REVERSE MARKET INSIGHT

12 | NRMLA NewsRead about the association’s current initiatives.DARRYL HICKS

15 | Book ReviewThere’s a new must-read on the shelves that talks about what you can do to protect your retirement.

17 | RoundupA collection of recent facts and surveys affecting the reverse market

18 | Hot SeatTony LopesHousing director of Cambridge Credit Counseling

24 | MarketingMedia Mixology: Crafting the Perfect Publicity CocktailHow to launch a dynamic PR campaignRUSSELL TRAHAN

28 | LegalThe Problem With Lender-Paid Mortgage Fees in H4P Transactions What you need to know JIM MILANO

31 | HMBSStrong Performance Continues in HMBS Investor demand remains as low volumes persist.DARREN STUMBERGER

32 | SpotlightA Tool in the Elder Law ToolboxElder law attorney Shirley Whitenack, president-elect of the National Academy of Elder Law Attorneys, talks to TRR about utilizing HECMs and connecting with reverse professionals.

38 | Last WordLooking ForwardWhy the future for HECMs is brightSTEPHEN VOGT

34 | FeatureKathleen ZadarekyHUD’s deputy assistant secretary of single-family housing talks about getting the HECM program back on track.

JESSICA GUERIN

FEATURE The Reverse Review wants your company news!

Be a part of our Movers & Shakers column, where you can read about the latest company initiatives, programs, hires, acquisitions and more. Send us your company’s press releases or email us news of your latest venture, and we’ll consider printing it in the next issue.

Send your news to [email protected].

“I think the key is making sure that whatever [the industry does] supports the sustainability of the product. We need successes. Seniors who are successful with their reverse mortgage programs will go a long way to build continued interest in it and driving others to seeing it.”

6 | TRR


contributors

John K. Lunde

Darryl Hicks

Tony Lopes

Laurie Denker MacNaughton

Michael D. Kent

Russell Trahan

Cy Brinn

Jim Milano

Darren Stumberger

JOHN K. LUNDE10 | Stats gJohn K. Lunde is president and founder of Reverse Market Insight, Inc., a performance data analysis and consulting firm specializing in the reverse mortgage industry. RMI clients include eight of the top 10 reverse mortgage lenders, plus investors, servicers and vendors to the industry. 949.429.0452 rminsight.net

DARRYL HICKS12 | NRMLA News gDarryl Hicks serves as vice president of communications for NRMLA. Before joining the association in 1999, he spent three years writing for National Mortgage News, where he covered politics, regulatory changes impacting the financial services industry and niche mortgage products. At NRMLA, Hicks writes membership communications, contributes articles to Reverse Mortgage magazine, responds to questions from consumers, oversees the CRMP program, and helps organize conferences and other events.

TONY LOPES18 | Hot Seat g Tony Lopes is the housing director of Cambridge Credit Counseling Corp., a nonprofit housing, credit and bankruptcy counseling agency. Lopes is an AFCPE-certified credit counselor and a NeighborWorks America-certified housing and HECM counselor, with more than 12 years of experience in the financial counseling industry. Lopes has a B.A. in criminal justice and sociology from William Patterson University in New Jersey.

LAURIE DENKER MacNAUGHTON21 | Why I Love My Job gLaurie Denker MacNaughton is a reverse mortgage specialist at Middleburg Bank. She grew up in Tucson, Arizona, in a large, multigenerational household, and was a highly competitive athlete, symphony harpist and community volunteer. MacNaughton studied in Europe, graduated with honors from Villanova University and attended graduate school at George Washington University. She is a freelance writer and a frequent speaker at elder law, health care and financial planning events. [email protected]

MICHAEL D. KENT23 | There Is a Season gMichael D. Kent is the founder of American Equity Management, LLC, a consulting firm specializing in human, intellectual and investment capital strategies for the mortgage industry. Kent was formerly executive VP and president of loan origination at Reverse Mortgage Solutions and has 34 years of mortgage banking experience. He is chairman emeritus and a board member of Community Technology Alliance, a 501(c)3 organization that works to provide technology solutions for ending homelessness.

RUSSELL TRAHAN24 | Media Mixology: Crafting the Perfect Publicity Cocktail gRussell Trahan is the president of PR/PR, a boutique public relations agency specializing in positioning clients in front of their target audience in print and online. PR/PR represents experts of all kinds who are seeking national exposure for their business or organization. PR/PR will raise your business’ awareness in the eyes of your clients and customers. [email protected]

CY BRINN27 | Engagement Is the Key to Social Media Success gCy Brinn is the COO of VirPack, an award-winning provider of document management and delivery technology to the mortgage industry. [email protected]

JIM MILANO28 | The Problem with Lender-Paid Mortgage Fees in H4P Transactions gJim Milano is a partner with the law firm of Weiner Brodsky Kider. Milano’s practice focuses on regulatory compliance for the financial services industry, particularly with respect to reverse mortgage issues. Milano is nationally recognized as one of the leading lawyers in the area of reverse mortgage law, and is a frequent speaker on topics of interest to industry members at various trade association conferences and webinars.

DARREN STUMBERGER31 | Strong Performance Continues in HMBS gDarren Stumberger is an executive VP at LiveWell Financial and a leading expert on reverse mortgage securitization. He has more than 15 years of experience in residential mortgage trading and securitization, and he chairs the NRMLA HMBS Issuer Committee. Stumberger has worked in New York City as a mortgage trader and banker for some of the nation’s leading investment banking firms, including Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch.


contributors

Jessica Guerin

JESSICA GUERIN34 | Kathleen Zadareky gJessica Guerin is the editor-in-chief of The Reverse Review. She has worked on the editorial teams of Chicago Home & Garden, Chicago magazine and Time Out Chicago. Prior to joining the magazine, Guerin managed the marketing efforts for a commodity brokerage firm in the Chicago Board of Trade. She has a master’s degree in magazine publishing from Northwestern University and a B.S. in journalism from Boston University.

STEPHEN VOGT38 | Looking Forward gStephen Vogt is a New Jersey branch manager for Sun West Mortgage Company. He has hosted several radio and TV programs about reverse mortgages and has written numerous articles about the product for local and regional publications. His goal is to help anyone interested in accessing their home equity become well-informed about the loan and its benefits in order to decide if it’s the right fit for them.

Stephen Vogt

movers & shakers

READ ABOUT THE LATEST DEVELOPMENTSin companies across the reverse space.

HAVE A COMPANY UPDATE YOU WOULD L IKE TO SEE PUBLISHED? email it to [email protected]

Bayshore Mortgage Funding Launches Reverse Mortgage Division

Bayshore Mortgage Funding has launched a

reverse division with Andrew Parker, Steven Sless and Ian Sandler. Together, the team brings more than 30 years of combined experience in the reverse industry working for Maverick Funding, DBA Reverse Mortgage Network and Great Oak Lending Partners. Through innovative live seminars and a direct-to-consumer platform, the group focuses on the importance of educating the consumer about reverse mortgages. Bayshore reverse mortgage is currently looking for top-producing reverse mortgage loan originators and loan processors to help grow their division.

One Reverse Mortgage Hires Derek Marks as Director of Capital Markets

Derek Marks will lead One Reverse Mortgage’s capital markets division.

Marks is a 22-year veteran in the mortgage industry with 14 years of experience in capital markets. In his new role, he will lead product development, risk management, heading and trading. Marks previously worked as vice president of trading and securitizations at RMS/S1L, vice president of capital markets at MetLife Home Loans, and senior vice president and pricing executive and Bank of America.

ReverseVision Hires Wendy Peel as VP of Sales and Marketing

Reverse mortgage

software and technology provider ReverseVision has hired Wendy Peel as vice president of sales and marketing. In this position, Peel will be responsible for managing the ReverseVision brand, working with product development on system enhancements, and broadening ReverseVision brand awareness among forward lenders and financial planners. Previously, Peel served as vice president of sales and marketing for cloud-based SaaS applications provider

CommercePromote, where she was responsible for rebranding the company from a website design firm to a provider of marketing/operations enterprise solutions.

United Northern Mortgage Bankers Hires Carol Dujanovich

United Northern Mortgage

Bankers has hired Carol Dujanovich as director of reverse mortgage operations to further develop the bank’s growing reverse division, Senior Security Advisors, which was recently ranked eighth in the country. Dujanovich previously worked as director of underwriting at Proficio Mortgage Ventures and as director of wholesale at Urban Financial of America. “I’m excited to be joining Senior Security Advisors because of its well-established name and history of treating their customers in a compassionate and ethical manner,” Dujanovich says.

8 | TRR


Call today or email us for more information. 888.272.1214 [email protected]

Landmark has a solution for you,

Appraisal ManagementLandmark offers a full-range

of valuation products including appraisals, alternative valuations, and post-closing audits. We will manage

the entire process for you.

Technology PartnerMaintain control over and streamline your in-house appraisal management

process using our powerful cloudware, LandscapeTM.

Document DeliveryLet us manage the process of

valuation document delivery to your borrowers using DocuVaultTM and keep you compliant with ECOA regulations.

© 2015 Landmark Network, Inc. All rights reserved.

Whether you work with an AMC, or manage your

appraisals in-house. . .


industry news

March EditionAN UPDATE OF THIS PAST MONTH’S BREAKING NEWS

NEWS DIRECT TO YOU: The industry’s headlining stories at your fingertipsWANT EVEN MORE UP-TO-THE-MINUTE NEWS? Visit reversemortgagedaily.com

HEADLININGNEWS

1. HUD TO DELAY REVERSE MORTGAGE FINANCIAL ASSESSMENT DATE

HUD announced its decision to delay implementation of the Financial Assessment rule just weeks before its effective date. Citing a delay in the delivery of “certain system enhancements” required to support policies published in Mortgagee Letters 2014-21 and 2014-22, HUD said in an email notice to lenders that FHA will publish a mortgagee letter in the coming weeks announcing a new effective date, which is expected to be within 30 to 60 days of the original date of March 2, 2015. HUD also announced that it has revised HECM model loan documents that incorporate requirements from ML 2014-21 and 2015-02 pertaining to the Life Expectancy Set-Aside; revised eligible and ineligible non-borrowing spouse certifications; and reinstatement of the period of deferral of the due and payable status for an eligible non-borrowing spouse.

// February 12, 2015

2. HUD BUDGET SHOWS REVERSE MORTGAGE PROGRAM BACK ON TRACK

The Obama administration’s annual budget proposal for HUD indicates that the reverse mortgage program, and the FHA overall, is regaining stable financial footing. The agency is requesting an increase of nearly $4 billion over current funding levels—an increase that trumps that of other government agencies for the fiscal year 2016 budget proposals. The improvement is continued over last year’s budget proposal, which also

reflected a positive trajectory for FHA’s financial status. Projecting a guaranteed loan subsidy rate of -0.69% for the HECM portion of FHA’s MMI Fund in 2016, the administration sees the reverse mortgage program generating positive cash flow in the coming fiscal year, up slightly from a negative subsidy rate of -0.4% projected for fiscal year 2015. A positive subsidy rate would indicate the program is projected to generate negative cash flow, or a loss. The department pointed to HECM program changes that have improved the product’s sustainability in the market. The budget includes additional provisions related to the HECM program, including a request for additional housing counseling funds and a lift on the cap of the number of outstanding reverse mortgage loans, which was set by Congress.

// February 2, 2015

3. CALIFORNIA LAUNCHES REVERSE MORTGAGE ASSISTANCE PROGRAM

Reverse mortgage borrowers facing foreclosure in California can turn to a new assistance program, which offers up to $25,000 in relief for certain homeowners. It is similar to an underperforming program launched in Florida in 2013. The pilot program is designed for low- and moderate-income seniors who are at foreclosure risk due to delinquent property expenses related to a reverse mortgage, and it is being administered by Keep Your Home California. The organization was established to help distribute California’s “Hardest Hit” dollars, which the federal government funneled to states where house prices declined drastically during the economic downturn. Unpaid property taxes and homeowners insurance premiums are among the expenses that could be met through the pilot program. It offers loans that are forgiven after a term of two years.


4. OCWEN TO SELL $10 BILLION SERVICING PORTFOLIO TO NATIONSTAR

Ocwen Financial Corporation announced plans to sell a $9.8 billion portfolio of mortgage servicing rights (MSR) to Nationstar Mortgage Holdings. Ocwen is the owner of top-10 reverse mortgage lender Liberty Home Equity Solutions. The deal does not include reverse mortgages. Nationstar formerly owned a reverse mortgage origination platform, but announced plans last year to stop originating HECMs. The portfolio consists of about 81,000 performing loans owned by Freddie Mac with a total principal balance of approximately $9.8 billion, Ocwen said in a statement.


5. HUD: REVERSE MORTGAGE LENDERS MUST FOLLOW EQUAL ACCESS RULE

Reverse mortgage lenders cannot evaluate potential borrowers on the basis of sexual orientation, gender identity or marital status, HUD stressed in a mortgagee letter February 6. Detailing a final rule published in 2012, which was meant to ensure equal access to housing through HUD, HUD stressed that the rule applies to all approved lenders in an FHA mortgage insurance program. Under the equal access rule, these lenders are to consider only HUD-approved eligibility requirements for borrowers. Lenders are not allowed to ask the sexual orientation or gender identity of an applicant as part of determining eligibility. The term “family,” as it is used in HUD housing programs, also is addressed in the letter. It states that the definition of family is not dependent on the sexual orientation, gender identity or marital status of its members.

// February 16, 2015Call today or email us for more information. 888.272.1214 [email protected]

Landmark has a solution for you,

Appraisal ManagementLandmark offers a full-range

of valuation products including appraisals, alternative valuations, and post-closing audits. We will manage

the entire process for you.

Technology PartnerMaintain control over and streamline your in-house appraisal management

process using our powerful cloudware, LandscapeTM.

Document DeliveryLet us manage the process of

valuation document delivery to your borrowers using DocuVaultTM and keep you compliant with ECOA regulations.

© 2015 Landmark Network, Inc. All rights reserved.

Whether you work with an AMC, or manage your

appraisals in-house. . .

10 | TRR


stats

January 2015 Top Lenders Report

1 2 3 4 5American Advisors GroupEndorsement1,219

RMS/S1LEndorsement645

One Reverse MortgageEndorsement461

UFAEndorsement381

Liberty Home EquityEndorsement258

Lender EndorsementsREVERSE MORTGAGE FUNDING LLC 179 PROFICIO MORTGAGE VENTURES LLC 128 UNITED NORTHERN MORTGAGE BANKERS LTD 107 LIVE WELL FINANCIAL INC 106 THE MONEY STORE 72 CHERRY CREEK MORTGAGE CO INC 71 MAVERICK FUNDING CORP 67 SUN WEST MORTGAGE CO INC 59 NET EQUITY FINANCIAL INC 57 OPEN MORTGAGE LLC 49 PLAZA HOME MORTGAGE INC 48 M & T BANK 47 HIGH TECH LENDING INC 43 ADVISORS MORTGAGE GROUP LLC 33 THE FEDERAL SAVINGS BANK 32 PEOPLES BANK 31 FIRSTBANK 31 MCM HOLDINGS INC 30 SUN AMERICAN MORTGAGE CO 24 TOWNEBANK 23 UNIVERSAL LENDING CORPORATION 21 GMFS LLC 20 360 MORTGAGE GROUP 20 AMERICAN NATIONWIDE MORTGAGE COMPANY 19 AMERICAN PACIFIC MORTGAGE 18 UNITED SOUTHWEST MORTGAGE CORP 15 TOP FLITE FINANCIAL INC 13 FIRSTAR BANK 13 EASTERN BANK 11 FRANKLIN FIRST FINANCIAL LTD 10

Lender EndorsementsHOMEOWNERS MORTGAGE ENTERPRISE 10 NORTH AMERICAN SAVINGS BANK 10 SOUTHERN TRUST MORTGAGE LLC 10 SOUTHPOINT FINANCIAL SERVICES 10 VANGUARD FUNDING LLC 10 RESIDENTIAL HOME FUNDING CORPO 9 NATIONWIDE EQUITIES CORPORATION 9 LAND-HOME FINANCIAL SERVICES 9 GENERATION MORTGAGE COMPANY 9 GEORGETOWN MORTGAGE 9 DOLLAR BANK FSB 9 CIRCLE MORTGAGE CORPORATION 8 AMERICA FIRST FEDERAL CREDIT UNION 8 ASPIRE FINANCIAL INC 8 BANK OF ENGLAND 8 HOMESTEAD FUNDING CORP 8

Brought to you by:

LOOKING FOR MORE STATISTICS?Go to rmsinsight.net for all of the industry’s

latest stats and rankings.

% % % % %


INDUSTRY SUMMARY

Retail Endorsement Growth

14.68%Wholesale Endorsement Growth

8.7%Total Endorsement Growth

12.09%* Figures Above Reflect Change

from Prior Month

6,000

4,000

2,000

08 10 1112 1 2 3 4 5 6 7

*Numbers Represent MonthsRetail Wholesale

9

123456789101112

TOT

UNITS CHG% UNITS CHG% UNITS CHG%

2,7892,6142,3582,3622,6512,4132,3191,9442,2482,7732,5002,867

7.52%-6.27%-9.79%0.17%

12.24%-8.98%-3.9%

-16.17%15.64%23.35%-9.84%14.68%

2,2652,5452,2561,8061,8421,7471,7721,3061,5142,0781,9072,073

39.04%12.36%

-11.36%-19.95%

1.99%-5.16%1.43%

-26.3%15.93%37.25%-8.23%

8.7%

5,0545,1594,6144,1684,4934,1604,0913,2503,7624,8514,4074,940

RETAIL WHOLESALE TOTAL

29,838 23,111 52,949

19.68%2.08%

-10.56%-9.67%

7.8%-7.41%-1.66%

-20.56%15.75%28.95%-9.15%12.09%

stats

HECM Endorsement Stats Through December 2014

TRAILING TWELVE - MONTH ENDORSEMENTS

{ FIGURE }01

H

ECM

EN

DO

RSEM

ENT

TREN

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FIX

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ATE

PERC

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EN

DO

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IN T

HE

MIL

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NS

70%

60%

50%

40%

30%

20%

10%

12/1

/12

1/1/

13

2/1/

13

3/1/

13

4/1/

13

5/1/

13

6/1/

13

7/1/

13

8/1/

13

9/1/

13

10/1

/13

11/1

/13

12/1

/13

1/1/

14

2/1/

14

3/1/

14

4/1/

14

5/1/

14

6/1/

14

7/1/

14

8/1/

14

9/1/

14

10/1

/14

11/1

/14

12/1

/14

$1,200.0

$1,000.0

$800.0

$600.0

$400.0

$200.0

$0

12/1

/12

1/1/

13

2/1/

13

3/1/

13

4/1/

13

5/1/

13

6/1/

13

7/1/

13

8/1/

13

9/1/

13

10/1

/13

11/1

/13

12/1

/13

1/1/

14

2/1/

14

3/1/

14

4/1/

14

5/1/

14

6/1/

14

7/1/

14

8/1/

14

9/1/

14

10/1

/14

11/1

/14

12/1

/14

ARM FIXED

12 | TRR


nrmla news

The FHA’s Mutual Mortgage Insurance Fund is heading in the right direction, according to President Barack Obama’s FY 2016 budget released on February 2. Strengthening the fund, which by statute is required to be net neutral, was the intent of the Reverse Mortgage Stabilization Act of 2013. NRMLA advocated for that act, and the resultant changes to the HUD program include upfront draw limitations, alterations in the mortgage insurance premium structure to encourage lower draws, and the imminent implementation of financial assessment. For FY 2016 (which begins October 1, 2015), the Office of Management and

Budget projects the HECM portion of the fund will produce a negative credit subsidy of -0.69. No Treasury infusion will be needed for the third-consecutive fiscal year. The HECM program will more than pay for itself. And accusations that the federal reverse mortgage program will cost the taxpayers money—such as those made recently by Pat Robertson—will join the list of misinformation doled out too frequently. Obama’s 2016 budget proposes an elimination of the cap on the number of HECM loans that can be outstanding at any time. The most recent cap of 275,000 loans was set in 2006 and has been suspended every year thereafter to accommodate

growth in the program. This proposal would eliminate the need for an annual suspension extension. The budget also requests an increase in housing counseling support from $47 million utilized in FY 2015 to $60 million available in FY 2016. In addition, an Administrative Provision is proposed that amends the National Housing Act to delete the sentence “For purposes of this subsection, the term ‘homeowner’ includes the spouse of a homeowner.” In its place is language stating, “The Secretary may, within his sole discretion, provide for further deferrals.” The deleted language is the basis for the recent lawsuits against HUD around the rights of non-borrowing spouses following the passing of borrowers. The release of the president’s budget each year is a kickoff for negotiations between the White House and the houses of Congress with the goal of reaching an agreement by the start of the new fiscal year. An interesting note about this year’s budget process is that Shaun Donovan, who served as HUD Secretary when the HECM changes were designed, now serves as Director of the Office of Management and Budget.

REITERATING “FREEDOM OF CHOICE” DRAW OPTIONS

A new Ethics Advisory Opinion published by NRMLA’s Ethics Committee reminds industry participants that any requests for funds after the expiration of the first 12-month disbursement limit period should be at the sole discretion of the borrower.

Ethics Advisory 2015-01: Freedom of Choice Remaining Draw Options After 12 Months/Ethical Obligations and Restrictions highlights two key points contained in Mortgagee Letter 2014-11:

(1) That mortgagees, whether through pricing options, marketing or advertising, may not “encourage” mortgagors to

take any remaining funds after the 12-month period ends “whether they need it or not;” and

(2) That mortgagors should determine at their own discretion and without “encouragement” from mortgagees, the “timing or amount” of such remaining draws.

The Ethics Committee refers to these two points as the mortgagor “Freedom of Choice” requirements.

The advisory opinion adds, “It is the Committee’s view that NRMLA Members are required under the Code of Ethics to honor the mortgagor Freedom of Choice requirements, and not, through pricing options,

marketing, advertising or otherwise, to take any actions that directly or indirectly encourage HECM loan mortgagors with remaining draw amounts following the First 12-Month Disbursement Period to draw such remaining amounts in any manner (including, for example, drawing all such remaining funds) other than in the manner, and with such timing and in such amounts, as such mortgagors themselves determine are appropriate to meet their needs.”

Any NRMLA member who violates the Freedom of Choice requirements is subject to possible sanctions by the Ethics Committee, including termination of membership and public naming.

On the Docket: Fed Budget Shows MMI Fund Gaining Strength, Proposes Loan Cap Elimination


nrmla newsBROUGHT TO YOU

BY DARRYL HICKS: NATIONAL REVERSE

MORTGAGE LENDERS ASSOCIATION

NEW

S FR

OM

NRM

LA

Preparing for the White House Conference on Aging Preparation for the 2015 White House Conference on Aging, scheduled for July, includes regional forums, the first of which will be in Tampa, Florida, on February 19. Subsequent forums will be held in Phoenix, Arizona, on March 31; Seattle, Washington, on April 9; Cleveland, Ohio, on April 27; and Boston, Massachusetts, on May 28.

Each will allow the planning committee to hear directly from the public on issues such as ensuring retirement security, promoting healthy aging, providing long-term services and support, and protecting older Americans from financial exploitation, abuse, and neglect. They will also help to reach older Americans and their caregivers, advocates and others stakeholders where they live.The regional forums are co-sponsored by AARP and are being planned in coordination with the Leadership Council of Aging Organizations, a coalition of more than 70 of the nation’s leading organizations serving older Americans. While participation is by invitation, all of the events will be live via webcast to engage as many people as possible.

Professionals Achieve CRMP Status NRMLA congratulates the following individuals for earning the Certified Reverse Mortgage Professional designation:

• Tim Anderson, Responsible Reverse Mortgage, Inc. Fernandina Beach, Florida

• Eric Christensen, Access Reverse Mortgage Corporation St. Petersburg, Florida

• Mike Gruley, 1st Financial Reverse Mortgages Plymouth, Michigan

• Pat Kubert, Reverse Mortgage Solutions Canton, Michigan

• Tim Linger, 1-866-REVERSE Mortgage Orlando, Florida

• Jonathan Michael Maiolatesi, 1st Financial Reverse Mortgages Plymouth, Michigan

• Malcolm S. Tennant, Access Reverse Mortgage Corporation St. Petersburg, Florida

• Parker Turk, Sun American Mortgage Company Mesa, Arizona

Just JoinedNRMLA welcomes the following new members:

• Loan Lynx, LLC Port Saint Lucie, Florida (Lender)

• Realty Lending Group San Diego, California (Lender)

• Quontic Bank Jericho, New York (Lender)

• Synergy One Lending dba Retirement Funding Solutions San Diego, California (Lender)

In the AssociationTraffic to Consumer Site Grows 44%

Unique visits to NRMLA’s consumer site, reversemortgage.org, grew 44 percent last year, averaging 28,259 visits per month versus 19,561 in 2013. A record 33,066 unique visitors utilized the site in July.

We anticipate these numbers will improve through NRMLA’s efforts to maintain a strong ranking on Google, as well as our promotion of the site through social media and during press interviews.

With all this traffic, you will want to make sure your complementary lender listings are still current. If changes are necessary, please send them to Darryl Hicks at [email protected].

4�Ninety-seven individuals have earned the CRMP designation since mid-2010 and every one of them is prominently listed on the NRMLA consumer website, REVERSEMORTGAGE.ORG.

NRMLA member

44% growth in unique visits to NRMLA’s consumer site.

14 | TRR



BOOK REVIEWBeware of Falling ShortA NEW BOOK TALKS ABOUT WHAT YOU CAN DO TO PROTECT YOUR RETIREMENT.

There’s a retirement crisis pending, and ignoring the problem won’t make it go away. In their new book, Falling Short: The Coming Retirement Crisis and What to Do About It, Charles D. Ellis, Alicia H. Munnell and Andrew D. Eschtruth tackle the problem head on.

In today’s world, most Americans don’t have the resources to retire at a traditional age and live comfortably. The Center for Retirement Research at Boston College, where co-author Munnell serves as director, asserts that 53 percent of Americans are at risk of not having enough money to maintain their standard of living in retirement. It’s a problem the authors say was once left to the government and employers to solve, but will now rest firmly on the shoulders of the retirees themselves.

The book, which Money magazine deemed “the best new book in retirement,” calls itself a guide of sorts for those seeking to create a financially secure retirement, and includes information on how seniors can leverage a reverse mortgage. It does, according to The New York Times, “a fine job of clearly laying out the whats and whys of the impending crisis [and] provides a number of reasonable sounding alternative paths to avoiding financial Armageddon for the coming generations of seniors.”

Falling Short breaks down academic research to make the facts accessible for the layman, with the ultimate goal of helping readers create a smart, fiscally responsible plan to support their later years. x

2

FIND IT HERE

FOR THOSE LOOKING TO DELVE DEEPER INTO THE NATION’S RETIREMENT PROBLEMS, AND LEARN MORE ABOUT WHAT THEY CAN DO TO PROTECT THEMSELVES, FALLING SHORT IS AVAILABLE ON AMAZON.

ALICIA H. MUNNELLDirector, Center for Retirement

Research at Boston College

CHARLES D. ELLISFounder, Greenwich Associates

ANDREW D. ESCHTRUTHAssociate director of

external relations, Center for Retirement Research at Boston

College

Falling Short is a primer on the choices confronting Americans in today’s world rather than an economic tome. Americans have not been facing up honestly to their prospects in retirement. Falling Short will help them do so.

16 | TRR



roundupH e r e i s a l o o k a t t h e

N E W S A N D S TAT SAFFECTING THE MARKET.

THIS

MONTH {GET UP-TO-DATE retirement facts, home price stats, senior trends and HECM market developmentsin The Reverse Review’s monthly Roundup.

T H E S E N I O R A G E N DA

Only one-third of boomers in their late 60s are still working.According to a survey by Gallup, employment rates for baby boomers drop significantly between ages 50 and 60. About 80 percent of seniors in their early 50s are still working, the survey revealed, while only 50 percent of seniors age 60 are still working, with the percentage declining each year past 60. Only about a third of seniors who are 67 to 68 (the oldest of the boomer generation) are continuing to work in some capacity.

M O N E YM AT T E RS

Study sheds light on how

Americans are doing when it comes to retirement savings.

A recent survey by moneyrates.com involving nearly 2,000 U.S. adults

over 25 revealed that only 27 percent of

respondents starting saving for retirement in their 20s. Despite

this, the survey suggests that those

who do so are 66 percent more likely to retire early. Another

interesting fact: A notable portion of respondents had

reached their 40s, 50s and 60s without any funds socked away

for retirement.

40yrs old 29% had no savings

50yrs old30% had no savings

60yrs old29% had no savings

N U M B E R C R U N C H

The number ofbaby boomers inthe U.S. last year-The U.S. Census Bureau

I N T H E N E WS

HuffPo: Five Best Reasons to Get a Reverse Mortgage Right Now

ONEBuy a second home.

TWORetire early.

THREEUse the proceeds as a business loan and start a new career.

FOURTravel.

FIVEFind peace of mind.

76.4m

Statistics indicate home equity will be an important source of income for many seniors.About 60 percent of households in their 60s still have a mortgage, according to a recent article by Alicia Munnell at the Center for Retirement

Research at Boston College. “Subtracting outstanding mortgage balances from the gross house price yields median home equity of $110,000, which accounts for more than 40 percent of the homeowners’ total wealth as conventionally measured,” Munnell writes, adding that a reverse mortgage is a viable tool that can be used to pay off an existing mortgage and provide funds to support retirement.

H O M E E Q U I T Y

H

I

!

R E T I R E M E N T FACTSSOCIAL SECURITY IS THE MAJOR SOURCE OF INCOME FOR MOST SENIORS. Nine out of 10 individuals age 65 and older receive Social Security benefits. Social Security benefits represent about 38 percent of income for the elderly.-Social Security Administration, 2014

18 | TRR


MARCH 2015

From his favorite vacation and his first job to his thoughts about the reverse mortgage market, we get the facts from Tony Lopes, housing director of Cambridge Credit Counseling.

THE

REVERSEreview

THE

HOUSING DIRECTORCambridge Credit

Counseling

TonyThe greatest setback to our industry was the housing crisis. It severely hurt the MMI Fund and the number of originations.


personal

> When I was younger I wanted to be a U.S. marshal.

> I never missed an episode of Sons of Anarchy… guess I’m going to have to find something new to watch.

> My first car was a 1995 Dodge Dakota. I’ve had many nicer vehicles since then, but I still miss that truck.

> My favorite movie is Boondock Saints.

> My favorite book is The Count of Monte Cristo.

> My celebrity crush is Kim Kardashian. I know that sounds crazy, but I met her in Miami a few years back and she is absolutely beautiful.

> I’ll never forget Halloween night, 1999—it was the night I met my beautiful wife.

> My first job was working in a bowling alley as a porter. I cleaned up the lanes and did various other jobs. At the time it was perfect because I was able to pay 25 cents a game to bowl.

> If I could meet anyone, past or present, it would be Elvis Presley. No explanation needed on that one—he was the king!

> Something that nobody knows about me is that I have bowled 15 300 games.

> My favorite vacation was when I was 13. My father and I canoed the Allagash River in Maine for seven days. It is some of the most beautiful country I have ever seen and the fishing was amazing.

> If I were a pro athlete, I would be a professional golfer. I don’t have the physique to be anything else these days.

> When I was a kid, I had a potbelly pig named Max. He was pretty cool. I used to walk him on a leash. He was surprisingly clean and extremely smart.

> My favorite time of the day is dusk; I find it calm and peaceful.

> If I could trade places with someone for the day, I would choose Dana White, president of the UFC. It seems like it would be interesting to say everything that’s on your mind, with no filter.

> Ten years from now my daughter will be in high school. Whoa! No matter how old she is, I’ll still be calling her my little monkey.

professionAl

> Reverse mortgage professionals can best support the public image of reverse mortgages by focusing on educating seniors. Well-educated borrowers make well-informed decisions and that can only help our public image.

> In shaping the appropriate regulation of the reverse mortgage industry, government officials need to understand that the product is inherently complicated and we need to find a way to simplify or consolidate the myriad disclosures currently required.

> Before I entered the reverse mortgage industry, I was the counseling manager of Cambridge Credit Counseling’s call center.

factsfun

The future of the reverse mortgage industry is bright if you look at the

demographics of the senior population.

The challenge will be adjusting the public

image of reverse mortgages and finding a way to penetrate the growing demographic

of seniors.

My favorite movie is Boondock Saints.

If I could meet anyone, past or

present, it would be Elvis Presley. No

explanation needed on that one—he was the

king!

20 | TRR



Not all my clients are fighting cancer—obviously. However, this client, with her many needs and many factors to consider, vividly represents the multifaceted face of reverse mortgage origination.

When I first started in the business, home values were deteriorating by the day and “turn-downs” far outnumbered closings. Most of my workweek was composed of networking, cold calling, writing—and teaching, teaching, teaching. And it paid off: Those relationships forged years ago still

produce leads, and those primary contacts pass my name on to others.

But little did I know—little could I have guessed—just where my life as a reverse mortgage loan officer would lead me. I have been in $3,000,000 homes and $30,000 homes; dirty homes and spotless homes; homes of the active and homes of the paralyzed; homes old and new, rural and urban; homes so decrepit we had to do a total rebuild before moving forward. But they’re all someone’s home.

Many of my clients, indeed most of my clients, are well-read, well-educated, well-traveled; they are using their reverse mortgage to plan for the future. But the names I will long remember are those of the oldest, the poorest, the sickest.

And here’s what all my borrowers have in common: They want to remain at home with as much dignity and independence as circumstances allow. Indeed, I have yet to meet the man who says, “My goal in life is to get old and sick and die in a nursing home.” Home, just being home—it’s the longing of the human heart.

If statistics are correct, some reading this article have children who will live to see the year 2130. This means there will be some big changes to the very fabric of how we live, where we live, and with whom we live.

But though there are changes all around us—to our product, to our families, to our nation—there is one thing we can be pretty sure is not going to change, and that’s the deep desire to be at home.

And, for the record, making that possible is what I love so much about my job. n

ORIGINATINGWhy I Love My JobBy Laurie Denker MacNaughton

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ASSIST

DIDYOU

KNOW?

According to a 2014 study by the AARP, 87 percent of adults over the age of 65 want to stay in their current homes as they age. For Americans

ages 50 to 64, 71 percent said they want to age in place.

“THOUGH THERE ARE CHANGES ALL AROUND US—to our product, to our families, to our nation—there is one thing we

can be pretty sure is not going to change, and that’s the deep

desire to be at home.”

ACCORDING TO LAURIE

There’s so much joy in helping those in need.It was 10:30 at night and I had missed dinner—again. As I knelt on the floor and gingerly slipped the fuzzy slipper onto my client’s lymphedema-swollen foot, I reflected on a conversation with a forward loan officer earlier in the day: “What is it you like so much about your job?” he had asked. My answer: “Overcoming otherwise insuperable obstacles in seniors’ lives.”

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Liberty-Ad-Training–February.pdf 1 1/20/15 10:37 AM


ORIGINATING

Volumes may freeze in the near term, but I’m confident things will warm up.ver the past year, I have had the opportunity to travel the country and spend time with several reverse mortgage companies. I have met with executives, operations personnel and originators about the industry in general, the changes that have happened and are continuing to happen, and the challenges these changes create. At the same time, we have talked about the opportunities in our space and how to best capitalize on them.

When I take the time to comtemplate these conversations, I am reminded of my childhood growing up in the Midwest and how I dreaded the winters.

The winter season meant struggling with the most radical of weather changes. Frigid temperatures, what seemed like endless snowstorms and, of course, ice. Winter presented so many challenges to overcome just to get through it. In the midst of all this nasty weather, I always kept one primary thought in mind: Summer is coming!

Summer was my favorite season. School was out, the days were long, the weather was warm and the sky was clear. Summer in the Midwest, for a kid, was full of endless possibilities and opportunities for fun and adventure. I have this same feeling now for our industry: We just need to get through the winter.

The last couple of years have been full of changes for the reverse mortgage industry. Not only significant product changes, but also what seem like never-ending regulatory changes. If that were not enough, we are now about to manage what could be considered the largest single program change in the last decade: Financial Assessment. This change will pose significant challenges as we prepare for implementation.

Change almost always means challenge. In the case of Financial Assessment, we will be looking at the challenges of systems, processes, underwriting and training. It will mean a reassessment of our operational structure to ensure we have the necessary skill sets on staff to manage the new requirements and necessary processes. Origination software will need to be redesigned to facilitate the new needs of our originators and staffs. New training will need to be developed and implemented to ensure everyone is on board with the new program. Our marketing will need to be changed to accurately reflect what is expected of potential borrowers, and what they can expect during the process of approving their loan request.

It will essentially mean a revamp of how we conduct our business.

All of my conversations with the companies I have visited leave me feeling very good about how this change will be implemented and managed. Everyone I have spoken to seems to understand the scope of the change and appears to have prepared well for implementation. Sure, there will be some issues and it may be a bit painful at times, but this season will pass.

As I finish writing this piece I am struck by all of the opportunities the next season of our industry holds. We will have a great opportunity to look at the quality of our loan origination systems. We can ask ourselves, are we doing everything we can to ensure our customers’ data is secure? Is it time to develop a standardized borrower data file that can seamlessly move from one lender’s system (reverse or forward) to the next and thereby improve overall system efficiency and performance? Does our current marketing approach appropriately educate borrowers and other stakeholders? What will it take to have a reverse mortgage become a standard product menu item for all mortgage bankers, forward and reverse?

As I experienced growing up, getting through the winter is always tough and sometimes downright painful, but the summer… ah, the summer. n

There Is a SeasonBy Michael D. Kent

“Origination software will need to be redesigned to facilitate the new needs of our originators and staffs. New training will need

to be developed and implemented to ensure everyone is on board with the new program. Our marketing will need to be changed to

accurately reflect what is expected of potential borrowers, and what they can expect during the process of approving their loan request.

It will essentially mean a revamp of how we conduct our business.”

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MARKETINGRR RR

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PROMOTE

Media Mixology: Crafting the Perfect Publicity Cocktail By Russell Trahan

From the bar room to the board room, a different brand of mixology is taking place: the meticulously designed publicity campaign. All beneficial and lucrative P.R. strategies are devised like a classic cocktail, with an emphasis on industry standards, creative execution and an array of unique approaches that parallel the goals—or tastes—of the business or individual. There are many different options to consider when concocting the perfect publicity campaign, but it is paramount to remember that in order to achieve the desired result, the mix of media must be just right.

Local & Community Print: The BaseThis is the heart of any publicity campaign. Like an aged, smoky rye, targeting print media

publications forms the base of your P.R. cocktail: Everything builds off of it. Articles placed in local and community magazines helps to establish visibility and lends to credibility in your particular field. When you are looking for the proper starting point, look no further than the printed page.

The diversity of readership and focus in the wide range of print outlets allows for producing audience-specific content across a variety of industries, and positions you for the best chance of

increased name recognition and profit margins. While the allure of a television or radio interview can seem enticing—and they do have their place in the publicity mix—your information in local and community print publications offers permanence. A satellite outlet or emergency-broadcast message will not interrupt your expertise.

Broadcast: The Modifier The purpose of a modifier in a drink, traditionally an additional liqueur such as vermouth, is to enhance the impact

of the base. That brings us to interviews and appearances on the broadcast medium, which works to augment your efforts in the area of print. The modifier will not make your campaign, but it will absolutely enrich it.

A targeted approach with radio and television, promoting events and engagements in a geographic area, will provide a spike of P.R. activity that builds from your local and community print base. Your presence in print has brought your thoughts and ideas to your audience; your presence on their televisions and radios will put a face and voice to them.

Interviews & Op-Eds: The Flavor The flavoring in an artisanal cocktail truly sets it apart from its traditional counterparts. Grenadine, tropical juices, ginger

beer—ingenuity in flavors makes your beverage stand out, and the same is true for your publicity campaign.

Interviews that result in quotes in daily newspapers—local and national—and newsstand magazines bring your personality to the forefront. A controversial or distinct idea in the pages of publications with massive readerships puts your views on wide display and helps to establish you as a one-of-a-kind expert in your area.

How to launch a dynamic PR campaign The handcrafted cocktail has skyrocketed in popularity. Thanks in part to period-piece television dramas such as Mad Men that romanticize bar scenes of yore, drinks like the Old-Fashioned and the Sazerac have risen from the recesses of the speakeasy to the drink menu of the neighborhood watering hole. With its focus on precision and detail, the art of mixology has effectively taken taps and brass rails by storm.


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Op-eds take this a step further. They provide you with a forum to distinguish yourself from your colleagues. Imparting a unique opinion or thought process on your audience can make you a household name. Do not be afraid to push the envelope—professional mixologists take concerted risks to create a name for themselves.

Online Components: The Garnish

The garnish is the icing on the cocktail

cake, if you will. You are finishing your creation with

a flourish that doubles down on your established base, modifier and flavors. The P.R. mix uses print outlets’ online

components as a garnish.

Since most—if not all—print media have an associated website, newsletter or blogging arm, many articles or interviews that appear in print will also be featured online. This achieves a dual impact of your original piece, as it now exists on computer screens as well as in tangible print, which only helps to extend your reach.

With the advent

of our social media society, articles online may garner even more mileage, as sharing pieces deemed particularly informative or valuable has become one of the cornerstones of Facebook and Twitter. You’re only ever a few clicks and shares away from going viral.

There are few things as enjoyable as a finely crafted cocktail. Mixologists across the globe are using their imaginations to create innovations on ice, using the classics as foundations to bring about something entirely original. The media mix for a publicity campaign should adhere to the same process: an emphasis on time-honored local and community print placements, a boost with broadcast media, and heightened name recognition with interviews and opposite-editorials. Top off your campaign with online features and exclusives and you have the mixture for the perfect publicity cocktail.

And you just may become the toast of the town. n

MARKETING

There are few things as enjoyable as a finely crafted cocktail. Mixologists across

the globe are using their imaginations to create

innovations on ice, using the classics as foundations to bring about something

entirely original. The media mix for a publicity campaign should adhere to the same process: an

emphasis on time-honored local and community

print placements, a boost with broadcast media, and heightened name

recognition with interviews and opposite-editorials. Top off your campaign

with online features and exclusives and you have

the mixture for the perfect publicity cocktail.

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celink.com | (844) 228-2101

Focus is critical to ensure your best reverse mortgage servicing results. This is why Celink is the only reverse mortgage servicer that concentrates exclusively on reverse mortgage servicing—not origination. This singular focus has allowed us to assemble a superior team and create an unsurpassed platform, for reverse mortgage servicing that delights your borrowers—and reflects positively on your brand.

The value of A STRONG ALLY: FOCUS.

For more information, please contact Katie Kirkham, Director of Client Relations at (844) 228-2101.

celink ad series--the value of--focus.indd 1 1/12/15 1:17 PM


TECHADVANCE

Today, 59 percent of seniors go online, an increase of 6 percentage points in just a year, and 68 percent of Americans in their early 70s go online. More than 50 percent of adults who are older than 65 were Internet users and 35 percent of them go online daily, according to an April 2012 study from the Pew Research Center.

Because there is a sizable and growing segment of reverse borrowers who regularly go online, this is an ideal time to offer them the choice of using the Internet to submit the documents required to originate a reverse mortgage. With a few minutes of explanation to senior borrowers, it is likely that many, if not a majority of them, will opt for supplying at least some of their loan documentation through the Internet.

One technology that provides the secure environment that more and more senior borrowers desire, as well as the efficiency gains that savvy, margin-squeezed lenders seek, is a Web-based borrower portal. Web portals present borrowers with a list of documents that their lender requires to complete a reverse mortgage transaction. Borrowers can securely upload the requested

documents, download documents sent to them by their lender, monitor loan status, and exchange secure messages with their lender and other loan participants.

As a result, lenders save time and money obtaining documents and communicating with their borrowers, resulting in a higher level of customer service, which strengthens their relationships with borrowers and increases borrower satisfaction. After a document is uploaded to a lender through a borrower portal, one or more members of the processing staff receives a notification that the documents have been added to the borrower’s file. Lenders can also use borrower portals to request additional documents and borrowers are able to go online to track their loan status and stay up-to-date with document requests, statuses and messages without requiring a lender employee to take phone calls or respond to emails.

From the lender perspective, a borrower portal reduces the time that borrowers and lenders need to devote during origination, loan processing and underwriting. Borrower portals also increase the efficiency of document delivery and communication, especially when the borrower portal is supported with an advanced-document

management and delivery system.

Regardless of the Internet adoption rate among reverse mortgage borrowers, some borrowers will prefer to do business with paper documents, overnight mail and wet signatures. That option remains available to them, though the reliance on paper is more expensive, slows origination processes, and leaves lenders vulnerable to regulatory scrutiny and hefty penalties if documents are misplaced or lost. For these reasons, lenders will do well to encourage reverse borrowers to use borrower portals. As time marches on and tech-savvy baby boomers become reverse borrowers, reverse lenders that don’t offer borrower portals will find that they will lose business to competitors that do.

Smart reverse lenders should offer borrower portals sooner than later so they have the opportunity to tweak their portals and related business processes before it becomes essential to provide such portals to capture tech-savvy baby boomers when they begin to flock to reverse mortgages in droves. n

The Benefits of Encouraging Borrowers to Get Online By Cy Brinn

59% 68%

Seniors that go online

Americans in their early 70s

go online

More than 50 percent of adults who are older than 65 were Internet users and 35 percent of them go online daily.

Monitoring the loan process online keeps senior borrowers in the know. Lenders that offer reverse mortgages can cut costs, gain efficiencies and help ensure compliance by migrating originations to the Internet. That’s because the popularity of reverse mortgages is growing among senior homeowners and their use of the Internet has been steadily increasing for years.

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LEGALThe Problem With Lender-Paid Mortgage Fees in H4P Transactions By Jim Milano

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UNDERSTAND

What you need to knowOver the past several years, lenders have complained of HUD’s inconsistent treatment of lender-paid mortgage broker fees in HECM for Purchase transactions. It appears now that HUD may be taking a more consistent and favorable position for lenders on this issue. However, like many things HUD-related, it may take more time to determine if the manner in which HUD will treat lender-paid mortgage broker fees in HECM for Purchase transactions becomes final, consistent and favorable to lenders.

As background, there are four HUD Homeownership Centers (HOCs). These HOCs engage in Post-Endorsement Technical Reviews (PETRs) and quality assurance reviews of FHA loans that lenders originate. When loan level issues are spotted by the HOCs, they issue deficiency letters to lenders, allowing

them an opportunity to explain. If a lender does not respond, or the HOC does not accept the lender’s explanation, often the HOC will request that a lender indemnify HUD for any claim that HUD ultimately pays on that loan. If HUD pays a claim on the loan, the lender could end up owing HUD tens or even hundreds of thousands of dollars on the claim paid. This emphasizes the importance not only of lenders “getting it right” in the origination and underwriting of loans, but also of HUD understanding and applying origination rules in a correct and consistent manner.

So-called “seller concessions,” or interested-party contributions, currently are allowed on forward FHA-insured loans up to 6 percent of the loan amount. If that amount is exceeded, the loan ratios and loan amount must be adjusted downward, requiring the borrower’s down payment to increase.

With Mortgagee Letter 2009-11, however, HUD stated that seller concessions and interested-party contributions are not allowed with HECM for Purchase loans. So, the question becomes: What is an interested-party contribution? HECM lenders have argued for years, in the face of exceptions noted in PETR reviews, that lender-paid mortgage broker fees are not interested-party contributions because the lender is not paying such fees on behalf of the borrower, but is paying the mortgage broker on its (the lender’s) own behalf.

In 1999, HUD recognized through a Statement of Policy that a mortgage broker could be paid by a lender or a borrower. Now, under the LO Comp rules (as implemented by the Federal

View our digital version...Reverse Review articles (present and past) are available on our website. Access a wealth of content about the business of HECMs online. www.reversereview.com


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LEGAL

Reverse Board in April 2011 and assumed and updated by the CFPB), at least for fixed-rate loans (of which most HECM for Purchase are structured), a mortgage broker may be paid in connection with a loan by the lender or the borrower, but not both.

Perhaps confusing the matter more is HUD’s revised RESPA rules, effective in January 2010, wherein HUD required a lender-paid mortgage broker fee to be reflected on the HUD-1 as a borrower credit. This wacky RESPA math was never intended to change the true nature of the underlying payments being made. (The CFPB has inherited both the LO Comp rules and RESPA.) Thus, if a lender is paying a mortgage broker, it may be doing so for itself, not the borrower. Just because this payment is disclosed as a credit on the HUD-1 does not make it a true lender-paid borrower credit.

Another source of confusion is that some HOCs were writing up the issue of lender-paid mortgage broker fees in HECM for Purchase transactions, and other HOCs were not. There are even reports of one HOC writing up this issue, and then dismissing the finding for some lenders when they

complained but not for others.

Lenders work very hard to comply with the myriad of rules that exist in lending today. Lenders should not be required to indemnify HUD for loans on which lenders made no mistake. HUD should be clear on both its understanding of its own rules, and consistent in how it applies those rules across multiple loans and multiple lenders. Hopefully, the issue of one HOC sometimes requesting lenders to indemnify HUD for paying lender-paid mortgage broker fees in connection with HECM for Purchase loans, and sometimes relenting (but sometimes not), is a thing of the past. However, like many things HUD-related, it may take more time to determine if the manner in which HUD will treat lender-paid mortgage broker fees in HECM for Purchase transactions becomes final, consistent and favorable to lenders. n

Jim Milano is a partner in the law firm of Weiner Brodsky Kider PC, where he practices mortgage-banking law. The views expressed in this article are not intended as and do not represent legal advice.

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“WITH MORTGAGEE LETTER 2009-11,

however, HUD stated that seller concessions

and interested-party contributions are not

allowed with HECM for Purchase loans. So, the

question becomes: What is an interested-

party contribution? HECM lenders have argued for years, in

the face of exceptions noted in PETR reviews,

that lender-paid mortgage broker fees

are not interested-party contributions because the lender is not paying

such fees on behalf of the borrower, but is paying the mortgage

broker on its (the lender’s) own behalf.”

30 | TRR


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Demand remains strong from dealers and investors; I would not expect much change in sentiment as long as volumes remain depressed. With new capital charge rules and Basel III, domestic banks need to continue filling their portfolios with zero-risk weighted floating-rate mortgage-backed securities. Via HREMICs, dealers can create Ginnie Mae par-priced floaters at a spread of 50 basis points above the funding cost (usually one-month Libor) and can take comfort that if rates rise, the asset will move in lockstep with the funding cost. Most notably, banks usually like to own assets that won’t extend in duration as rates rise. Typically with forward MBS, as interest rates rise, bonds will extend in duration as fewer borrowers try to refinance their mortgages. This in effect slows prepayments and extends the weighted average life of the security. Banks don’t like that, as it creates a mismatch of their assets and liabilities. With an HREMIC class, these fears are alleviated due to the fact that higher levels of interest rates cause the 98 percent

buyouts to occur sooner and actually create a slight contraction of spread duration in this scenario. So, banks pick valuable spread over comparable government-guaranteed investments alternatives and the lack of extension risk makes the asset a core focus for banks.

Through mid-February 2015, issuances have totaled $1.25 billion, which indicates an increase of 15 percent

from 2014. Program-to-date issuance has reached $56 billion. Directionally speaking, the industry has issued roughly the same number of loans (including tail balances) in the past seven years versus the prior 18. In 2015, the biggest driver of increased volume has been an uptick in tail issuances, particularly from late 2013, because of early 2014 HECM 60 pools where

borrowers could draw on their lines of credit after the 12-month freeze. Interestingly enough, the draw behavior is orderly and only modestly above historical monthly draw patterns. By no means are borrowers drawing the rest of their funds at their expiration date. We’re seeing some minor pent-up demand for funds come through (as one would expect), and then normalization back to historical patterns. The behavior seems rational and in line with the intent of the Reverse Mortgage Stabilization Act of 2013.

In regard to volume, we will see a front-loading effect as borrowers may opt to hasten their decision to take out a HECM prior to the implementation of Financial Assessment. This is certainly not a new phenomenon as this trend usually occurs prior to a program change. If anything, it simply front loads volume and steals from later months. Net-net, you get to the same place.

One notable trend in originations is the increase in adjustable-rate loans indexed off of the 12-month Libor. Whereas annual Libor origination only comprised 15 percent of adjustable pools originated in 2014, the percentage of 2015 originations is growing rapidly. I’d almost expect a complete flip-flop of

the 85 percent to 15 percent breakdown (one-month Libor versus 12-month Libor) that we saw in 2014, with annual taking on a much higher percentage in 2015. This is very good news, as the annual loan is an excellent choice for the consumer concerned about rapidly rising interest rates. n

HMBSStrong Performance Continues in HMBS By Darren Stumberger

RR RR

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LEARN

Investor demand remains as low volumes persist.HECM spreads have tightened markedly into late February as investor appetite remains strong in this lingering low-interest-rate environment. Spread levels have evened out and are roughly the same as they were before the traditional year-end widening. Annual Libor bonds have tightened to 20 DM (discount margin) after widening out to 32 DM at the end of 2014. Fixed-rate bonds have tightened into the low 40s to swaps after touching out to the low 70s to swaps late fall and into December. Monthly Libor bonds are back to 40 DM after touching 60 DM late last year.

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“Demand remains strong from dealers and investors; I would not expect much change in sentiment as long as

volumes remain depressed.”

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SPOTLIGHT

IN THIS MONTH’S EDITIO

N

WE TALK ABOUT

CONNECTING WITH

ELDER LAW ATTORNEYS.

A Tool in the Elder Law Toolbox BY JESSICA GUERIN

w

RR

03 / 2015

See them at reversereview.com.

WANT TO SEE MORE ARTICLES LIKE THIS?

s president-elect of the National Academy of Elder

Law Attorneys (NAELA), Shirley Whitenack is a seasoned attorney who believes in the power of reverse mortgages to help seniors age in place.

Whitenack, a New Jersey-based elder law attorney, will take over as president of NAELA this June. With approximately 4,500 members nationwide, NAELA is an association designed specifically for members who practice elder and special needs law.

“Most NAELA attorneys utilize a holistic approach to the legal issues of aging,” Whitenack says. “We cover things like housing options as people get older, financing long-term care, incapacity issues, documents to name surrogate decision-making and end-of-life issues.”

Whitenack says NAELA members learn about the possibilities afforded by the HECM from the organization’s continuing education courses, newsletters and twice-yearly journal.

“It’s an important product that can be utilized by people who are elderly, particularly people who have low incomes but may have a significant amount of equity in their home that allows them to age in place, which for many, many people is very important,” she says. “We all try to keep up-to-date with reverse mortgages because it is an important tool in the elder law toolbox.”

Whitenack, who once worked as a commercial litigator, has practiced elder law for 23 years. “As exciting as it was to deal with high-profile clients and major corporations, I enjoyed the concept of being able to do well by doing good,” she says, “and helping real people with real problems.”

One of the ways in which she helps her senior clients is by recommending, in the right situation, a reverse mortgage loan. Whitenack says she has recommended HECMs to clients when she feels the product would be a sound solution to their particular problem.

“We have people who have lived in their homes for many years, and they may not have any income and have no choice but to either think of selling the home and moving to an assisted-living facility, or try to get a stream of income to supplement what they get from Social Security,” she says. “They may not have done a lot of saving or they may be so old that they might have actually outlived their savings. So in those cases, we’ll often talk to them or their family members about obtaining a reverse mortgage so they can continue to live in their house, maybe use the money so they can continue to pay the property taxes, pay for

home improvements or repairs if necessary, or even pay for an [in-home] health aid.”

When she suggests a reverse mortgage, Whitenack says she sometimes has to address popular misconceptions. “A lot of times, they think they are giving the house to the bank or the financial institution, and we need to explain that that’s not actually what’s happening here—that it’s a function of how long and how much is paid out. There’s also a misconception about how much can be borrowed, and a misconception about how that plays into the whole concept of Medicaid planning,” she says. “There is also sometimes confusion with the product and how it relates to the whole issue of long-term care insurance, and whether it’s a good idea to get reverse mortgages to pay for long-term care insurance products.”

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Whitenack says once the details of the loan are fully explained, the most common concern for clients tends to be the loan’s closing costs. But, she says, this concern does not typically deter clients. “For most people who we recommend reverse mortgages to, everyone is fine with it. Even if they think that the closing costs are too high, they still feel that it is the best solution for the family.”

Whitenack says in her experience, a HECM usually leads to a happy ending. “I’ve never had a client [who had taken] a reverse mortgage then come back and say, ‘This was a terrible idea,’ because in most of the cases [in which] I recommend that product, I really do believe it is a viable solution to what the elderly person and their family really wants, which is mainly to keep them in the home.”

While she is informed about the product, Whitenack says she is aware that the program has

recently undergone substantial change. “I cannot tell you that I am fully briefed on the latest, and I wouldn’t even know how to find out about that necessarily.”

One way reverse specialists can connect with elder law specialists

and keep them informed, she says, is by attending local or regional meetings. “Most states require attorneys to take courses every year in continuing legal education—it’s mandatory. Many of these continuing legal education courses all over the country look for corporate sponsors or exhibitors, and reverse mortgage companies often exhibit at these conferences or at these programs for continuing legal education. Even if that’s not the topic that’s being addressed, people can speak to a reverse mortgage specialist on a one-on-one basis and get literature on what it’s all about.”

Whitenack says connecting with reverse specialists at these meetings would be extremely helpful, because it’s often hard to reach former contacts. “One of the frustrating things that we find is that many times there are companies that are going in and out of the business, and there are specialists who are moving somewhere else, and you can’t even find them anymore; the card that they gave you is no longer good,” she says. “So it’s really important I think for people who are in the reverse mortgage

area to keep up with elder law attorneys whom they’ve met and keep them apprised of where they are and what the newest products are.”

Exhibiting at these continuing education programs locally or nationally would be a great way for reverse specialists to connect with elder law attorneys, she says. “In New Jersey, we have these programs that often have 120-150 elder law attorneys—you can’t get a better audience than that. And these programs always try to make time for [attendees] to visit the various exhibitors and vendors. It might cost a few hundred dollars to do that, but it’s probably well worth the money to be in front of these people and get to meet them. It would also be helpful, once they make the connection, to keep up with it.” n

SHIRLEY WHITENACKSchenck, Price, Smith & King NAELA president-elect

Shirley Whitenack is a partner at New Jersey’s Schenck, Price, Smith & King, where she

co-chairs the firm’s Elder and Special Needs Law Practice Group and the Estates and Trusts Litigation Practice Group. Whitenack devotes a substantial portion of her practice to elder and special needs law, estate planning, administration and trust and estate litigation. She is president-elect of NAELA and a member of the organization’s Council of Advanced Practitioners. She publishes and lectures extensively on topics related to guardianship, elder law, and estate and trust litigation.

Founded in 1987, the National Academy of Elder Law Attorneys is a professional association of attorneys who are “dedicated to improving the quality of legal services

provided to seniors and people with special needs.”

NAELA members help clients handle probate and estate planning, navigate public benefits, establish guardianship or conservatorship, and create a long-term care

plan. With chapters in 26 states, NAELA’s objective is to provide its members with educational resources on a broad range of topics related to the elder law specialty. NAELA members aim to assist clients with legal issues as they relate to “social,

psychological, medical and financial needs.” The academy therefore offers professionals in other fields advertising, exhibition or sponsorship opportunities in order to connect and partner with its members.

4�Visit NAELA.ORG TO LEARN MORE about how you can connect with elder law attorneys in your area.

Be a part of the conversation. -

Share your ideas with your colleagues and be a part of the solution.Reach out to us at [email protected].

34 | TRR


“WE’VE HAD A GREAT PARTNERSHIP [WITH] THE INDUSTRY AS WE’VE UNDERTAKEN THIS WORK TO PUT THE PROGRAM BACK ON SOLID FOOTING. WE’VE ASKED A LOT OF THEM AND THEY HAVE BEEN VERY RESPONSIVE

AND VERY FLEXIBLE, AND I THINK… BETWEEN THE INDUSTRY AND THE WORK WE’VE DONE HERE

AT FHA, [WE’VE MADE] SURE THAT THISPROGRAM HAS A LONG-TERM TRAJECTORY.”


KATHLEEN ZADAREKYHUD’s deputy assistant secretary of single-family housing talks about getting the HECM program back on track. By Jessica Guerin

When Kathleen Zadareky took over as deputy assistant secretary of single-family housing at HUD last year, the department’s reverse mortgage program was in the midst of a drastic overhaul. But the mortgage industry veteran charged ahead unfazed, picking up where Charles Coulter left off and working diligently with her staff to implement the changes mandated by Congress’ Reverse Mortgage Stabilization Act, confident they would put the program back on track.

Zadareky, who earned a degree in finance from the College of William and Mary and an MBA from Vanderbilt University, says she is passionate about the issue at hand. “I was working at Freddie Mac during the Great Recession, and when I saw what happened to the mortgage industry during that period, I sat back and I [decided] to focus on taking my career in a direction that worked with organizations that would maybe change some things for the better,” she says.

Zadareky made a career change, taking a job with the CFPB before a position became available at FHA. “I jumped at the opportunity to come back to my roots in single-family housing and work on issues that are really close to my heart,” she says.

As deputy assistant secretary, Zadareky is responsible for all aspects of FHA’s single-family housing operations in both the forward and reverse spaces—including program management, servicing and REO management, quality control and institutional risk management.

“What I love about this job is that I get a chance to work on issues that really matter and actually make change,” she says. “Not surprisingly, what’s frustrating is, I have neither enough resources nor time to do everything I would like to do. There’s always more that I’d like us to be working on, but we do what we can with what we have.”

Zadareky says she feels her work at FHA has a tangible impact, and that’s what makes it so rewarding. “It’s great that it means something,” she says. “Showing up here every day, I know it matters.’”

Overhauling the HECM

It has been about a year since Zadareky took over for Coulter, and

in that time the reverse mortgage program has been considerably revamped. Zadareky says a number of factors went into HUD’s decision-making. Mainly, she says, “It stemmed from an understanding that the program wasn’t working as we intended, and that was showing up in its impact on the MMI Fund.” Zadareky also says the trend toward large upfront draws was part of the concern. “People were taking all of the money out early in the life of the loan, and we were seeing a lot of tax and insurance defaults. So consumers were not being successful in retaining their homes.” She says HUD also assessed whether the amount a consumer could access through the loan was effectively reflecting current house price appreciation, which led to changes in principal loan factors.

Now, Zadareky says, the changes reposition the program as a tool to help seniors plan for retirement.

“When the HECM program was originally created, the expectation was the funds would be drawn out 8�

“When the HECM program was originally created, the expectation was the funds would be drawn out over time by seniors to help with living expenses, medical bills, other types of expenses. By limiting how the funds can be ac-cessed, liming the initial upfront draw, [we are ensuring] that there are funds over time available for retirement needs.”

36 | TRR


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visit us online at reversereview.com 4 youR monthly publication for reverse mortgage news

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over time by seniors to help with living expenses, medical bills, other types of expenses,” she says. “By limiting how the funds can be accessed, liming the initial upfront draw, [we are ensuring] that there are funds over time available for retirement needs.”

The Impact of Change

When it comes to Financial Assessment, Zadareky acknowledges that the industry is under pressure to adapt. Just recently, the agency pushed back its implementation nearly two months to accommodate for delays in system enhancements required to support the new policies. “Clearly, this is a big change in the origination process. We are adding a review that previously was never part of the process, so we absolutely acknowledge that this is work for the industry to get ready for this.”

But while the industry may struggle in its adaption of the new rules, Zadareky says she is confident that Financial Assessment will improve the program in the long run. “I think it’s going to change who is actually approved for a HECM loan in the future, and while

that can maybe mean a decline to some people, we expect it will ensure that the right people, those who will be successful over the long term of the program, will be the ones [who are] approved.”

When asked about the possibility of more modifications down the road, Zadareky says she thinks their work is nearly complete. “I knock wood and hope we are just about done. There are a few more changes in the servicing space that we’re working on around due and payable status, and clarifications on loss mitigation options. Those should be coming out in the next couple months, and then I think we’re hoping we’re largely done making change and the industry can focus on its adoption of those changes.”

Zadareky says she believes the policy changes have set the program back on track. “We are very hopeful that the changes we have put in place are the right ones and will lead to the long-term sustainability of the product,” she says. “But with this product, if there’s one thing I’ve learned, it’s that we’ve got to monitor it and continue to

review it over time. We have pushed a huge amount of change into the industry. Now we need to see how the industry will adopt that change and how it plays out now that it’s reality.”

Looking Ahead

Now, Zadareky says, the industry can do its part to advance the program by continuing to help seniors successfully access their equity—and by connecting with the right type of consumer. “I think the key is making sure that whatever [the industry does] supports the sustainability of the product. We need successes. Seniors who are successful with their reverse mortgage programs will go a long way to build continued interest in it and driving others to seeing it.”

“We’ve had a great partnership [with] the industry as we’ve undertaken this work to put the program back on solid footing. We’ve asked a lot of them and they have been very responsive and very flexible, and I think… between the industry and the work we’ve done here at FHA, [we’ve made] sure that this program has a long-term trajectory.” n

ML 2013-27September 3, 2013

A pivotal mortgagee letter details drastic changes to the program, including:

u New principal limit factors

u Initial disbursement limits

u A new single disbursement lump-sum payment option

u Initial mortgage insurance premiums and a new calculation for refinance transactions

u An announcement of pending financial assessment requirements

ML 2014-07April 25, 2014

Non-borrowing spouses receive greater recognition. They can now remain in the residence after the borrower passes, providing they complete an annual certification showing their continued support of the representations and warrants made by their spouse at the loan’s closing. A calculation of proceeds available to the non-borrowing spouse will be based on new principal limit factors.

ML 2014-11June 18, 2014

HUD limits the insurance to fixed-rate HECMs that provide for a single, full draw to be made at loan closing and do not provide for future advances to the mortgagor under any circumstances. Following earlier guidance from Ginnie Mae, the change eliminates the availability of single-disbursement, lump-sum payment options for adjustable interest-rate HECMs, which are deemed to be too risky for the MMI Fund.

ML 2014-12June 27, 2014

A principal limit factor table is released, including figures for ages under 62 to accommodate non-borrowing spouses who remain in their homes following a borrower’s passing. A special table includes PLFs for loans where one of the parties is age 18 to 61. The new tables show reductions in PLFs for higher interest-rate scenarios, reflecting an increased sensitivity to interest-rate environments.

ML 2014-22November 10, 2014

Financial Assessment and property charge set-aside requirements are finalized. In effect, the new ruling tightens underwriting standards, requiring lenders to evaluate a borrower’s credit history, income and debt to determine if they are capable of meeting the obligations of the loan. Lenders can take into account extenuating circumstances, but those who fall short will be required to set aside a portion of their loan proceeds to ensure the payment of property taxes and insurance.

A TIMELINE OF RECENT HECM POLICY CHANGE Since the passage of the Reverse Mortgage Stabilization Act of 2013, HUD has released a number of mortgagee letters that have instituted significant change to the HECM program.

38 | TRR


Over the past 25 years, there has been very little change to the questions or the product until now. The FHA has overhauled the reverse mortgage as we once knew it. While some of the old questions still come up, the most common question today is: Why is a product that has been around since the Reagan administration undergoing so much change now?

While I must admit the change has been drastic, I also stress that the product’s most essential benefits are still available. Borrowers still get to keep titles to their homes and can still tap their equity and use the proceeds as they see fit, provided taxes and insurance bills are maintained. Now, there are simply protections in place to ensure that borrowers who enter the program are successful.

In 1989, the reverse mortgage came under the supervision of HUD and the FHA. The program was intended to help members of our Greatest Generation stay in their homes with independence and dignity. As that generation passes away and the vast numbers of baby boomers loom on the horizon, HUD and the FHA became aware the program may not be suited for a landslide of new reverse applications. After careful examination of the current system, HUD began to implement rule changes. These changes were instituted to allow the program to continue to successfully assist seniors

who want to age in place.

The changes also diminish the risk of possible foreclosures. While foreclosures are not common with a reverse mortgage because there are no required monthly mortgage payments, if taxes and insurance aren’t paid, the loan can be placed behind a tax or homeowner’s insurance lien and foreclosure can ensue. The dramatic headlines—and more importantly, the draining effect on the MMI Fund—were too great to ignore.

As HECM professionals, these changes are going to affect how to get our product to the prospective applicant. We will need to retool our marketing to reach a different segment of the senior population. Gone are the days of building a clientele from seniors who were cash poor and house rich and desperately needed our help.

It’s a brave new world for reverse mortgage originators, who will have to start thinking on their feet and focus more on the fact that a HECM is a financial tool, not a life jacket. We have to start prospecting financial planners, CPAs, insurance professionals and home health providers for referrals. The HECM has the potential to provide financing for long-term care, including

single-premium life policies with heath care riders and an in-home health provider—all while keeping other liquid assets intact. With more than 8,000 baby boomers turning 62 every day, I believe that the future for reverse professionals who are able to rethink their strategy is very, very bright. n

Looking Forward By Stephen Vogt

LAST WORDRR RR

RR

PERSERVERE

“As HECM professionals, these changes are going to affect how to get our product to the prospective applicant. We will need to retool our marketing to reach a different segment of the senior population. Gone are the days of building a clientele from seniors who were cash poor and house rich and desperately needed our help.”

Why the future for HECMs is brightI’ve spent the better part of the last 25 years in the banking, insurance and mortgage business. Most of my business over the last nine years or so has been the reverse mortgage program. I’ve had a local cable television talk show on reverse mortgages, written many articles for local and regional papers, given seminars to those interested in finding out about the product and hosted a radio show on the subject. I’ve answered all the typical questions: Do I still own my home? Are there restrictions on how I spend my money? Will my children be responsible for my debt after I pass away?


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