Reverse Mortgages Presented By: Bruce Laukaitis SVP Reverse Mortgage Division Residential Home Funding Corp. 973-575-0097
What is a Reverse Mortgage? A reverse mortgage enables seniors, age 62 and older, to convert a portion of the equity in their home into tax-free proceeds without giving up ownership or ever making a payment while in their home.
The Power of a Reverse Mortgage A Reverse Mortgage can help replace the income of a lost spouse You get to eliminate your mortgage payments You can now preserve your Nest Egg Dramatically increase your income Cash out to help with expenses With NO MONTHLY PAYMENTS EVER
How can you qualify for a Reverse Mortgage? You OR your spouse must be 62 or older You must own a home Must pass a Financial Assessment Test Must pass a Credit Assessment Test
What types of homes are eligible? Single-family home, an owner occupied 1-4 unit residence, a federally approved condominiums NO co-ops *all homes require appraisal by a FHA approved appraiser
TWO TYPES OF REVERSE MORTGAGES 1. Fixed 2. Adjustable
Based on age of youngest borrower Still FHA insured Great for the conservative borrower Does NOT allow for a line of credit Rate will never change THE FIXED RATE HECM
THE ADJUSTABLE RATE HECM Same qualifications as other programs Rate changes monthly or yearly (up or down) Interest rate caped at 5 or 10% above starting rate Allows for a line of credit that can grow Federally insured through FHA, this loan provides the lowest interest rates, best protection for heirs and flexible use of monies in the future.
THE HECM PURCHASE Move into new home with no mortgage payments! Finance up to 50%-75% of purchase price with HECM! Great way to upsize or downsize Same qualifications as regular HECM Reverse Still FHA Insured Fixed Rate Available! Construction must be complete and home habitable
Jumbo Reverse Mortgage Similar guidelines to the FHA reverse mortgage Loan Amounts up to $2.25M States: NJ, PA, FL, SC, VA, CT No MI Rates are around 6.99% Condos worth more then $500,000 do not require FHA approval No limitation on Initial disbursement No origination fee Seller concessions and lender credits allowed on purchase 12/5/2016 10
Referral Partners Financial planners Accountants Realtors Senior Advocates Caregivers and in home nurses Banks that do not offer reverse mortgages Church Groups
What are some types of marketing I can do Set up reverse mortgage purchase Presentations with you realtor offices. Meeting with current and new referral sources and educate them About the program Working your current data base Pittsburgh PA Review your current turn downs. Think Can this person do a reverse mortgage before you turn them down.
THE REVERSE MORTGAGE PROCESS FOR RETAIL 1.Get the following information Full names of all people who own the home All phone number and contact info of borrowers Address of home Date of birth for all borrowers Current mortgage Balance Current Value of the home 2. Email this information to REVERSESUBMISSIONS@RHFUNDING.COM 3. Look out for email updates on Wednesdays from Mike Byrne 4. Loan funds and you get paid per your comp plan
THE REVERSE MORTGAGE PROCESS FOR BRANCH 1.NEW BRANCHES SCHEDULE AN ADVANCED TRAINING SESSION. 2.NEW BRANCHES LO SCHEDULE AN ADVANCED TRAINING SESSION WITH MANAGER. REVERSESUBMISSIONS@RHFUNDING.COM
Contest
Contest Duration: Jan. 1 st -Dec.31 st 2016 Contest is for Both Branch and Retail Divisions Contest will be for LOs and Managers
Terms & Conditions of contest *Must be employed with the company at time of trip *RHF reserves right to change location *You can only win one trip *Employees are responsible for their own - transportation to and from the airport. *Accounting may issue you a tax document for trip *Winners cannot give away their trip to another person. *Winners must be 21years or older.
Thank You! Bruce Laukaitis & Carrie Gunnello Reverse Mortgage Division 28 Bloomfield Avenue Suite 303 Pine Brook, NJ 07058 (973) 575-0097 Reversesubmissions@RHFunding.com 12/5/2016 18
Interesting FACTS 10,000 people turn 62 years old each day 67% of Baby boomers feel expenses are higher then they anticipated during retirement. 2013 Social Security Benefit increase of 1.7%. 2014 &2015 Social Security Benefit increase of 1.5% 2016 Social Security Benefit Increase 0% Social Security Benefit can be increase by 32% over the full benefit if you wait until age 70 before you file. Only 1% of the senior community are in reverse mortgages currently
Applicant Legal Concerns Power of Attorney acceptable Revocable trusts acceptable Life estate acceptable case by case
Other Facts about Reverse Mortgages No DTI requirements (Pass FA Test) No Credit score requirements (Pass Credit test) Can be used for Bankruptcy bailout Can be used to stop foreclosure Does not impact SSI or Medicare Benefits Short pays are allowed
Super Bowl Contest Retail LOs to qualify: 4 Closed RMs- Basic Room 6 Closed RMs Good Room 8 Closed RMs- Amazing Room Retail Branch Managers to qualify: Branch Closes 10 RMs Basic Room Branch Closes 15 RMs Good Room Branch Closes 20 RMs Amazing Room
Super Bowl Contest Branch LOs to qualify: 5 Closed RMs- Basic Room 8 Closed RMs Good Room 10 Closed RMs- Amazing Room Branch Managers to qualify: Branch Closes 10 RMs Basic Room Branch Closes 15 RMs Great Room Branch Closes 20 RMs - Amazing Room