Senior Assistance Program from FirstBank. HECM Advisor Program for Credit Unions, Banks, Bankers and Brokers

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1 Senior Assistance Program from FirstBank HECM Advisor Program for Credit Unions, Banks, Bankers and Brokers 1

2 This program focuses are your ability to serve your senior homeowners over the age of 62. Seniors and senior homeowners are the fastest growing segment of the population today. You do not want to be in the position to say to your seniors: we don t or can t offer you this service! 2

3 Your members and clients..they are the reason you exist. Many institutions are burdened with having to deal with the increased regulatory requirements and are not equipped to handle such a specialized product such as this. Larger competitors are soliciting your customers in many different ways. 3

4 Home Equity Conversion Mortgage: H.E.C.M. Allowing for the ability of senior homeowners to convert a portion of their home equity into useable funds, without a recurring monthly mortgage payment. Pronounced: hek-um Without this offering, your clients have no other option but to go to another financial institution for this need. They may even have to liquidate at least a portion of their assets some of which may be under your control. 4

5 Pay off existing mortgages Pay off credit card bills Increase monthly cash flow Medical needs and home health care needs Long Term Care Home Repairs Family needs Home Improvement Vacation or second home Etc., etc. No restrictions on what the funds can be used for 5

6 Let us help you fulfill this growing need. HECMs do not easily fit into a traditional mortgage lending platform. They need specialized expertise and administrative systems that require an upfront investment of talent, time and money along with experience. Let us allow you to cater to your senior homeowners by offering HECM loans, without the normally required carrying costs or investments into the program. We have several ways for you to do this! 6

7 Your staff s time invested is kept to a minimum. We provide the fulfillment services. You focus on your relationships; we provide the support services. Your staff can learn more about HECM Reverse Mortgages. The more they learn, the more they can help your senior homeowners. 7

8 Signed into law by Ronald Reagan in 1987 Regulated by HUD/Insured by FHA Borrower ALWAYS continues to own their own home No monthly mortgage payments required Requires independent third party counseling by a HUD-approved housing counselor for consumer safeguards Complete disclosures provided along with samples of actual closing documents BEFORE closing, so that the consumer can review ahead of time with family, friends or trusted advisors No credit score requirement Liability is limited strictly to the property, no personal liability NO pre-payment penalties Re-payment triggered when home is sold or is no longer the primary residence of the last surviving person on loan. 8

9 Our program is RESPA compliant. You will earn fee income as a result of the services that you perform in compliance with required rules. We will outline everything for you that is required on your end to remain compliant. Education is your main function. Your organization is basically the forefront for identifying senior homeowners and then providing them with program information and education, with our assistance. We support you every step of the way to ensure education is provided to the senior homeowner promptly and professionally; we will treat them just like you do! 9

10 FirstBank is a 109 year old TN chartered bank regulated by the FDIC and the TN Division of Finance We are classified as a small community bank by the FDIC with over $3B in current assets We have Direct Endorsement approval on all of our HECM loans and we underwrite and fund all of our loans. NMLS# FDIC# 8663 Corporate address: 3500 Blue Lake Dr., Suite 325, Birmingham, AL Corporate contact for this Advisor Program, additional information or verification: Call Ed O Connor, Sales/Marketing Manager: or eoconnor@firstbankonline.com This presentation is for business entities only an not intended for distribution to the general public. For industry professionals only. NMLS#

11 Ed O Connor, NMLS# Sales/Marketing Manager eoconnor@firstbankonline.com FHA made the program we make the difference! 11

12 FirstBank is a TN State chartered Depository Bank regulated by the TDFI and the FDIC. A Reverse Mortgage is an FHA-insured loan. Homeowners must be 62 years of age of older and live in the home as their primary residence. Homes must meet FHA/HUD minimum property standards. Borrowers must maintain hazard and flood insurance premiums, property taxes, utilities and make any property repairs. Although there are no monthly principal and interest mortgage payments, interest accrues on the portion of the loan amount disbursed. Reverse mortgages can use up all or some of the equity in your home and the amount you owe on a reverse mortgage will increase over time. Loan must meet underwriting requirements. Program rates, fees, terms and conditions are not available in all states and subject to change. FirstBank Mortgage is a division of FirstBank. All products and services offered through FirstBank NMLS# This document is advertising by FirstBank and is not from FHA/HUD. This document is not approved by any government agency. A reverse mortgage is a loan. FB FirstBank-3500 Blue Lake Dr., Ste 325, Birmingham, AL FHA made the program we make the difference! 12