HECMIZE Your Business Plan
August 2, 2022, BY PRMG MARKETING
Picture a mid-1970’s version of Southern California, an excited young couple stepped together into a new threshold, gleaning with pride as their homeownership dream had materialized. This new anchorage presented for their impending family a launch to an eventful future with endless possibilities and priceless memories.
Taking it back, so much more seemed within tangible reach. Let’s recall the early to mid-1950’s, when a Coca-Cola set someone back only about 10 cents – and if they’d fancied a Mickey D’s cheeseburger to go alongside it, they’d only fork out an additional 19 cents. Moving into the early 1970s, gasoline cost by the gallon hovered around 39 cents; the sticker price on a factory-fresh car ran for $3,600, on average; and for about $38k, a 20-something could afford to lock-in their first home.
Back in those days, people generally looked forward to future goals and considered them reasonably attainable. Retirement was not something to fear but anticipate; it was an accepted means to a rewarding end. Pension benefits were often expected by retirees – but now it’s considered the exception.
In examining the varied effects of rising cost during inflationary cycles decade-over-decade, living expenses compounded considerably. Now, some would say the reasoning and value comparisons on currency and commodities over time can be justifiably argued. But to the sensibilities of today’s Reverse Mortgage demographic, the 1950-70’s provided a more simple, manageable, and attainable way of life.
Resorting to Extremes
Years from now, history books will chronicle all we’re facing with the “would’ve, could’ve, should’ve” hindsight we’d find invaluable today. The past two years’ run-on pandemic was taunting enough without a 40-year ‘record high’ inflation showing up to laugh in our faces.
Affordability was a challenge for many Americans before, but can you imagine its compression hold on them now? Costs are up – WAY UP! Of course, this comes as no news to you or me, but while the overall populace is feeling the squeeze to some degree, countless others are being reduced to ruins by its substantial monetary strain.
In anticipation of the latest inflationary ambush, we’ve all contemplated ways to prevent or at least soften its imminent blow. But that scope of thinking is limited to what resides within our own control – which, at this point, seems difficult to manage.
In narrowing down economic effects by community, it’s become most apparent to retired citizens countrywide that real-life sacrifices are more necessary now than ever. They’re facing hardships they hadn’t ever imagined, succumbing them to fear and hopelessness. With each passing day, financial uncertainty and overwhelm is literally tearing down the ‘Senior Dream.’
A multitude of headlines spotlight a growing struggle – which has become, for retirees, very serious and real. Forbes Advisor’s, Kelley Anne Smith in her article, Financial Resources to Help Seniors During Times of Inflation, affirms that “Inflation is squeezing consumers’ wallets – and older Americans on fixed incomes are feeling it most.” What’s emerging here is a sobering realization to the lack of senior resilience and viability in retirement.
In a recent Washington Post feature, Fewer hot showers, less meat: How retirees on fixed incomes are dealing with inflation, Abna Bhattarai shares the survival plight of elder Americans. While the title says it all, its content allows us a closer look at how cutting back to such extremes is vital to senior survival. Our 62 years+ population needs reparative options and action – fast.
Bhattarai goes on to report, “The steady climb of inflation during the pandemic has put further stress on retirees.” She proceeds in introducing us to Morgan, a fifth-grade teacher from Asheville who’d retired in 2018, “Morgan said she thought she’d planned well for retirement… But rising prices and continued economic uncertainty have chipped away at any financial security she thought she had.”
This costly oversight applies to retired Americans across the board. Backup planning is not only wise – it’s an essential must. The unexpected is expected, and undoubtedly, it’s always best to be reasonably prepared for such seasons. But when several economic cluster clouds move in and take form at once, severe financial turbulence can result, becoming a precarious situation for seniors of all financial circumstances.
Today’s bread-and-butter problems are not limited to the penniless – they also pose concerns for retirees who thoughtfully planned and assumed they covered all their bases. Now with much to reconsider, many are back to square one. Those barely making it are now living in the red, while the financially secure are dipping into portfolios they had reserved for a later time.
Reversing Inflation’s Advantage Over Seniors
Social security’s most recent increase threw older Americans a bone, but not a meal. The supposed life-saving benefit is becoming impractical as it’s falling short of the increasing costs of living. Some talk of a proposed 8.9% SSI increase (maybe higher), which would be issued to seniors this upcoming 2023. That’ll be great…if the program’s striving recipients are able to sustain themselves through 2022!
There’s a reason Reverse Mortgage continues to flourish while the rest of the mortgage industry hangs by a weakened thread. It’s immunity to rate sensitivity makes it a product of a unique kind. With Reverse, there’s no great divide between the financially secure or destitute – each can benefit. While it cannot offer financial relief to all, reverse is a lending solution that can provide financial freedom in situations otherwise not possible.
Nothing is For Free – Or Is It?
We’re not in the snake-oil business – there’s no catch here. Reverse can help your clients – and it can support you. Fact: the program is allowing a growing number of seniors attainable means to financial peace and providing loan originators the ability to bridge their income gap. In offering a lending program solution such as Reverse, we cater to a distinctly advantageous group, with respect to home equity supply.
It’s important you understand how doable this is for you. PRMG’s HECM Team offers for free what others would charge you thousands to enjoy. We are fully qualified and equipped to get you rolling, immediately. Desperate times require appropriate measures, and since you need to fill the gap somewhere – why not HECM??
There’s no need to break out your mortgage lending lexicon to break down the wonders of Reverse – our AE’s offer you sales, educational, and procedural guidance. They are committed to your success, also offering borrower and/or financial partner loan customization and presentation support. With all you need within your reach, it’s really a no-brainer.
We’re all doing the best we can with the knowledge we have – we all want to make the right decisions for our clients and ourselves. With reverse loan fundings increasing year-over-year – and new applications up exponentially, NOW is your time to shine.
Did YOU Know? Reverse Mortgage has Something for Borrowers of Varied Circumstances:
Our Basic Borrower Qualifications Include:
- Seniors Ages 62 Years or Older (one spouse may be younger), who are homeowners living in the subject residence (at least 6 months out of the year).
Traditional HECM (Home Equity Conversion Mortgage)
- Eliminate Monthly Mortgage Payments – for life (borrower must maintain property’s taxes, insurance(s) and upkeep
- Access a portion of equity with a line of credit with growth potential over time (unused portion of LOC) – set in place for future security, used to leverage SSI benefit, finance in home care or use where needed most.
- Supplement Income by converting Equity to Cash
HECM Refinance (Refinance of Existing HECM Loan)
Home Appreciation – greater access to home’s equity
- Greater access to equity via FHA’s newest lending limit – increased nationally to $970, 800
- Potential Rate benefits
- Program change
- Add a spouse to loan
- National lending limit increase (determined by FHA)
*Five times benefit rule applies. Proceeds available to borrower must equal or exceed five times Loan costs/Refinancing fees. Inquire to learn more.
HECM for Purchase (HECM Purchase Program)
- Purchase a new home using RM loan proceeds (down payment required)
- Simplify Costs by obtaining a RM while Purchasing in one transaction
- Age in Place in New Home with No Monthly Payments Required
*Borrowers and/or qualifying non-borrowing spouses can remain in home so long it remains the primary residence 6 months of the year. Should borrowers move from residence or pass-on, the loan becomes due for repayment well. Borrowers must adhere to loan terms, including maintaining subject property’s taxes, insurance(s) and upkeep.
JUMBO/Proprietary (JUMBO Reverse backed by private lending firms)
- Age requirement as young as 55+ years-old
- JUMBO Loan with equity access higher than federally placed lending limits
- Payment elimination with loan amounts as high as $4+ million
- No Mortgage Insurance Premium (MIP – loan not Fed insured)
We Make it EASY for YOU to Get Started:
When we think about seniors like Morgan, Reverse Mortgage should be top of mind. “I’ve become a very boring person,” Morgan shares, “Seriously, I have done everything imaginable to try to cut down every penny I can.”
It’s so unfortunate that anyone should have to live in abject poverty – let alone vulnerable seniors with few reliable resources. This sad reality doesn’t have to be your client’s story as there’s nothing more tragic than hardships avoidably endured. You CAN make a difference – and we CAN help you do it!
Potential senior clients are all around us. Many times, seniors are hesitant to share their worries or curiosity – even with those they know and love! It’s a sure bet that someone among your family, friends, friends’ parents, clients, and clients’ parents need a Reverse Mortgage right now. They may be pondering the program but waiting on the right time and opportunity to explore it with a trusted professional. Unfortunately for them, that perfectly aligned opportunity rarely works out.
All you need to do is take that first step of faith. Simply request your One-On-One (or branch team) Coaching Session at HECM411@PRMG.NET – we take your hand from there. Our team will get you scheduled in with your friendly and knowledgeable assigned AE along with our very own HECM Division Manager and seasoned industry specialist, Merritt Barber.
You can discover how to spot and win over HECM clients. In addition, you will learn how to build interest and connections with prospective referral partners. Although reverse has steadily gained momentum, you’d be surprised how little realtors, builders, and referral partners know about the program.
With our team walking you through start to finish, you have every opportunity to serve your senior community, while earning the sufficiency to sustain your family through this iffy time. You’re equipped and empowered – take back control and seize the prosperous future you and your clients deserve!
To learn more about how Reverse Mortgage can benefit you and your senior clients, contact HECM411@prmg.net.