The Reverse Mortgage Blog - by Dennis Haber Esq.

Predictions –Can the unthinkable continue to happen?

 

I received an email that listed 10 individual predictions or statements that were then followed by an unimaginable event.  These 10 predictions with the ultimate outcomes are included herein.

 

This got me thinking about the reverse mortgage industry. Using the same format, I posit what a similar prediction/unthinkable outcome would look like.

 

For didactic effect, I have inserted a recent statement made by Peter Bell, the president of NRMLA and the “voice” of this great industry. I have also inserted a heretofore unimaginable FICTITOUS event after that statement. (Peter Bell’s remarks (Jan 8^th press release) and the made up outcome are in red as prediction #11).

 

I have been asked many times how I see the future of this industry. It is as bright as ever. With the elimination of over 20 trillion dollars in asset value, seniors have fewer options. Their children, who were spending over 2 billion dollars a month to help, can no longer assist.  

 

NRMLA has hit the ground running preparing the new HUD administration for some of the salient issues that will need to be confronted.

 

The above notwithstanding, many people in this industry are wondering whether we are at the beginning stages of a “funding contagion” that could cause serious trouble. This format provides a powerful way to place this issue front and center.

 

1.    "A very powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep the faith!" -- Richard Band, editor, Profitable Investing Letter, Mar. 27, 2008

At the time of the prediction, the Dow Jones industrial average was at 12,300. By late December it was at 8,500.

2.    AIG (NYSE:AIG - News) "could have huge gains in the second quarter." -- Bijan Moazami, analyst, Friedman, Billings, Ramsey, May 9, 2008

AIG wound up losing $5 billion in that quarter and $25 billion in the next. It was taken over in September by the U.S. Government, which will spend or lend $150 billion to keep it afloat.

3.    "I think this is a case where Freddie Mac (NYSE:FRE - News) and Fannie Mae (NYSE:FNM - News) are fundamentally sound. They're not in danger of going under. I think they are in good shape going forward." -- Barney Frank (D-Mass.), House Financial Services Committee chairman, July 14, 2008

Two months later, the government forced the mortgage giants into conservatorships and pledged to invest up to $100 billion in each.

4.    "The market is in the process of correcting itself." -- President George W. Bush, in a Mar. 14, 2008 speech

For the rest of the year, the market kept correcting and correcting and correcting.

5.    "No! No! No! Bear Stearns is not in trouble." -- Jim Cramer, CNBC commentator, Mar. 11, 2008

Five days later, JPMorgan Chase (NYSE:JPM - News) took over Bear Stearns with government help, nearly wiping out shareholders.

6.    "Existing-Home Sales to Trend Up in 2008" -- Headline of a National Association of Realtors press release, Dec. 9, 2007

On Dec. 23, 2008, the group said November sales were running at an annual rate of 4.5 million -- down 11% from a year earlier -- in the worst housing slump since the Depression.

7.    "I think you'll see (oil prices at) $150 a barrel by the end of the year" -- T. Boone Pickens, June 20, 2008

Oil was then around $135 a barrel. By late December it was below $40.

8.    "I expect there will be some failures. I don't anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system." -- Ben Bernanke, Federal Reserve chairman, Feb. 28, 2008

In September, Washington Mutual became the largest financial institution in U.S. history to fail. Citigroup (NYSE:C - News) needed an even bigger rescue in November.

9.    "In today's regulatory environment, it's virtually impossible to violate rules." -- Bernard Madoff, money manager, Oct. 20, 2007

About a year later, Madoff -- who once headed the Nasdaq Stock Market -- told investigators he had cost his investors $50 billion in an alleged Ponzi scheme.

10. A Bound Man: Why We Are Excited About Obama and Why He Can't Win, the title of a book by conservative commentator Shelby Steele, published on Dec. 4, 2007.

Mr. Steele, meet President Barack Obama.

 

11.  “The strong growth we’re seeing suggests the HECM program remains a strong and viable option for America’s seniors as they develop their financial plans for retirement …As more seniors try to figure out how to cope with today’s economic conditions, the HECM program takes on increased significance,” said Peter Bell, President of NRMLA.

(The following statement is used for didactic purposes only). The reverse mortgage program has been discontinued because FNMA has decided it can no longer purchase this paper. (Remember this statement is made up and untrue).

Questions:

Could you imagine this happening? While NRMLA’s Peter Bell and staff have been hard at work briefing the transition team and preparing to work with new HUD Secretary Donovan, could a “black swan” event like the above happen?  Is it not incredibly scary having one investment source for the entire industry…a source that is in receivership? While the answer to this query is that FNMA has except for a brief period of time been the “funding source”, can its current proscriptions keep pace with the expected growth of this industry?  Or to phrase it differently, what would occur if FNMA no longer was able to purchase this paper? Can there even be contingency plans for such an eventuality given the current economic/monetary environment? 

 

 

Financial Education Is The Key To Reverse Mortgage Growth

 

Robert J Shiller, in the business section of the New York Times (1/18/09), remakes the point that he forcefully made in his book, Subprime Solution: How Today’s Global Financial Crisis
Happened and What to Do about It, that the government’s bail out mode should include providing basic professional advice to the populace. It is the lack thereof that has caused many to suffer from poor financial decision making. The claim is that only the wealthy can afford to see a financial planner. Everyone should have that opportunity-even if it means that the federal government must subsidize fee based financial planners.

Clearly, financial literacy is lacking in this country.  In my seminars I ask how many people learned about finances, mortgages or about credit issues in grammar school.  No hands go up. How many learned about these things in high school? No hands go up. How about college? Maybe a few hands go up. That is why seniors have to be particular about the individual they  hire when it comes to obtaining a reverse mortgage or any mortgage for that matter. The borrower needs the confidence to know that they are doing the right thing. Often it is ignorance coupled with the influence of the borrowers’ own assemblage that will determine the direction chosen. The senior borrowers’ own coterie are also usually ignorant on this topic.

You see, as we grow up, we are expected to know about these things. Suddenly, becoming an adult includes magically obtaining knowledge in these critical areas.  Those that are fortunate will have heard and maybe learned some of this key information from their parents. Most of us however will have learned about this stuff through direct experience. Again, that is why taking the time in the hiring process becomes critical. A good loan officer, make that a great loan officer will provide the bundle of information that seniors never received.  A great loan officer will also help the senior borrower distinguish between forward mortgage concepts and reverse mortgage concepts. A great loan officer will be able to simplify the argot.

In his first inaugural address, President Roosevelt declaimed, “The only thing we have to fear is fear itself.” When our seniors become consumed with fear, they become paralyzed. Inaction takes over. In my view, this is the seminal reason why this industry isn’t seeing the kind of closed loan numbers we should be seeing. More and more seniors are saying that they do not have confidence in banks. This kind of thinking morphs into no confidence in mortgage brokers and mortgage bankers.

The banks were counting on this ignorance and playing upon that ubiquitous desire to partake in the American Dream.  This extended to refinancing the home as well. What was forgotten along the way was that one had to earn the right to get a mortgage; sadly, many believed that getting a mortgage became a right.

The credit card companies for too long have stuffed their unwanted and unsolicited credit card offerings down everyones throats. They make it harder to declare bankruptcy (yes, they wrote the legislation) while adhering to their insidious practice. And as usual the consumer takes it on the chin. Many of our elders have likewise taken it on the chin.

 While this financial education process won’t help today’s seniors, it will help tomorrows seniors. (I am confident that the reverse mortgage program will be around for a long, long time).  That is why today’s loan officers must be sensitized to these issues and review the approach that they are using. We all must become the financial teachers our clients never had.

Perhaps, Mr. Shiller is on to something.  But, why wait for adulthood to learn this financial stuff. Teach it in our schools. If we don’t, our schools will continue to graduate soon to be adults with low financial IQs.

THE GREATEST GIFT YOU CAN GIVE YOURSELF

This article will discuss some of the mental tools you can use to regain control over your life. These dormant ideas, once remembered, could transmute your wildest and fondest hopes into reality. When engaged daily, they could make 2009 and every year thereafter-YOUR YEAR.    

Author’s Note: This article was originally published in 1998 in the Nassau Lawyer.  It has been re-edited and truncated. Core concepts are timeless.

The Recurring Dream

The freezing winter weather has turned the dark, unlit mountain highway into a slick surface of invisible ice. As you car comes out of the turn, it suddenly spins out of control. As you frantically pump the brakes, the vehicle continues on its own independent journey over the ice. Your fruitless efforts to regain control cause you to over steer.  This only exacerbates the unrelenting skid. The failure to regain control causes you to be overcome by panic. You are about to open death’s door. As the vehicle continues its unmerciful slide over the embankment, you wake up in time to avoid the “fatal crash”. This horrible dream first haunted you during the final week of 2007. It reappeared as 2008 came to a close.

As 2007 came to an end, you remember promising yourself that 2008 would be different. It would be a year of accomplishments; a year of achievements. However, as you reviewed the past year, you had realized that it was merely a repeat of the previous 365 days. As it turned out, 2008 was another year of missed opportunities. This dream is reminding you that once again, you have failed to take control over your life.

Nature’s Law

Nature’s Law requires that you plant the seed today in order to reap the harvest tomorrow. This concept reminds us that there is always a gestation period. It reminds us that there is a clear cut positive relationship between the present and the future; between cause and effect. The seed of friendship planted today can blossom into the harvest of love tomorrow. The seed of hard work sowed today can grow into the fruit of career advancement tomorrow. The seed of an idea imbedded today can germinate into the roots of problem solving tomorrow. Nature’s Law clearly illustrates that there are no short cuts. In fact, it is the long term approach to dealing with life.

This need for instant gratification merely mirrors the way many products and services are marketed. Many promise quick, fast, instant and speedy results. Accordingly, many of us have come to expect the same kind of results in our business and in our personal lives. The following simple example illustrates the danger of such thinking. Suppose that the top of your desk is cluttered with papers. You now decide that it is time to clean the top of your desk; this is how you clean your desk. You simply sweep the papers onto the floor by moving your arm across the desk. Your desktop is now clean. However, you have created another problem. All the papers that were once on your desk are now on the floor. Expeditious decision making may seemingly cure one problem, while creating another. When you live for instant gratification, your thought patterns become feckless, as you lose the ability to analyze situations properly. Your focus narrows to looking for those shortcuts without evaluating the consequences of those actions.  Let’s apply Nature’s Law to the above desktop example: Under this approach, some papers would be filed away, while others would be neatly stacked upon the desk in terms of urgency. Each paper would have to be read and evaluated. It takes time and effort to achieve a positive solution.

 

DECISION TIME

Some people experienced an unfulfilled year because they have had trouble making decisions. By doing nothing, nothing will change.  Accordingly, I’m reminded of a wise statement made by Colin Powell, when he was Chairman of the Joint Chiefs. He stated that, “Indecision has cost the American people, American business and the American government billions more than a wrong decision”.  The opposite of indecision is taking action.  President Kennedy, when speaking about the space program underscored the need for action. It was important to go into space, “Not because it is easy, but because it is hard”. Both Powell and Kennedy knew that the easiest thing one could do was to do nothing at all. “Decision time” galvanizes creative and imaginative forces that can overcome any obstacle.   Since the United States put a man on the moon before the end of the decade (1969), Kennedy’s remark can only stand for the proposition that EVERYTHING IS POSSIBLE.

WHY NOT & ACT NOW

Christopher Reeves discovered that an idea may first sound impossible, then over time it becomes merely improbable then it becomes inevitable and unstoppable. This is the gestation period of Nature’s Law at work. Christopher Reeves, before his untimely death, had made phenomenal progress toward moving his limbs.

  George Bernard Shaw, in a quote made famous by Robert Kennedy said, “Some men see things as they are and say why. I dream things that never were and say why not”. Right now, this minute ask yourself “why not”.   Barack Obama asked, “Why Not” and look what happened.  It is true that the Why Nots of life can be yours. You just have to act now.   The last two words are really quite important.  The word act is an acronym that stands for A Champion Tomorrow. Action is the key ingredient to get what you want in life. If you want to be a champion to your family; to your friends and to yourself, you must take the appropriate action. This means that you can no longer put off making a decision when the time to act is ripe.  The acronym “now” stands for New Opportunity Waits. Nature’s Law rewards those that have planted those seed. Tomorrow new opportunities will always be there for those that make things happen. However, when you merely hope and wait for things to occur, without action on your part, it is like waiting for the sun to rotate around the earth. You will wait forever. If you do not make things happen, you will continue to say, “Next year I will…Tomorrow I will”……………………….

 

 

LEARNING VS LEANING

Additionally, the empirical data indicates that many people refrain from taking action; from moving forward because they are simply stuck in the past. They are stuck because they are afraid to fail again. Too many people wrongly believe that their future will be a repeat of their past. The past is only a snapshot of what happened before. Here’s the key: You can have a different future when you LEARN from the past instead of LEANING on your past. The next example illustrates this point.

Picture a major league baseball game played at your favorite team’s stadium. It is a beautiful night. Your team is behind. That is the bad news. The good news is that the bases are loaded. Because of an injury, a pinch hitter is coming to the plate.  The batter is a rookie. He is coming up to bat for the first time in his major league career…….It’s strike one, strike two and s  t  r  i   k  e     t  h  r  e  e e e e e e . If his past became his future he would strike out every time he came to the plate. Yes, a silly thought. Yet many people believe that they will strike out each time they come to the plate in the game of life. When our rookie comes to plate for his second at bat, his past cannot be changed.  Even a rookie can learn from his past. His next time up he relaxed; let his abilities take over; got a hit and won the game. His past was relevant only as a learning tool. He realized that he was too tensed at his first plate appearance. He made the correction. Even if you strike out today in the game of life, tomorrow affords you another chance at the plate. Like our rookie, you can get a hit and get ahead.

MENTAL BLACKBOARD

Here is something you may wish to try when you let your past beat up on you. Just remember the blackboard at school. It was invented so that your errors and mistakes could be forever erased.  Carry that blackboard around with you in your mind’s eye. Watch how you will become more confident when you learn from your mistakes. Once you learn from them, erase the mistakes from your memory, while forever keeping the lesson that you learned. Likewise, G-d created another day so that our errors and the hiccups of life could be erased.

BEWARE THE DREAM KILLER

When you are down in the dumps, you might find yourself saying something like this: “Look at me, I can’t get a break. Nobody thinks I can do anything. Again, I got passed over for a promotion. On and on it goes.  Most of our thoughts are negative. By the time that we reach age the age of twenty one, we have heard the word “no” or “You can’t do that” or “it won’t work” or “that’s stupid” over 100,000 times. It is easy to see why we become so negative. Accordingly, nothing is ever looking up. We empower others when we see ourselves in the negative light that they see us. Take away that power today. You are you. You are not what someone believes you are. You are better. Opinion givers often expound upon things they know nothing about.  Stop giving people the power to control your life.

 

 HEROES

 I want to tell you about two people that I alluded to earlier in the article. While growing up they learned that everything is possible. Because they believed in Nature’s Law;  understood about the supreme power of the mind; never became a prisoner of their condition; understood that there is no substitute for positive thought and action, each grew up to become A Champion Tomorrow.  Tom Dempsey for years held the record for kicking the longest field goal in the NFL. He never would have accomplished this feat had he listened to those who said that a player with half a foot cannot become a kicker in professional football.  Jim Abbott pitched in the major leagues. He would never have accomplished this feat had he listened to those who said that a player with one functional arm cannot possibly pitch in professional baseball by throwing a ball and catching a ball with the same arm/hand.

Do two positive things for yourself. Take action and believe in yourself. Don’t let some dream robber take your dreams away again.  Make this your year.

When you ACT NOW you can change your life. 2008 is over. 2009 and every year thereafter is your tomorrow. You are at the plate………….Here’s the pitch.

 

 

Financial Terrorism:How Will the Madoff Scare Affect the Reverse Mortgage Industry?

As the economy worsens more and more seniors are turning to the one mortgage program that really makes a difference in their lives.  Seniors long to work with someone they can trust.  But how can they be sure that the loan officer that is being considered can be trusted in light of the eponymous  Madoff scandal? 

People have remarked that, “if you can’t trust someone of Mr Madoff’s stature, then there is simply no one that the public can trust” Question:  Is it unfair and inappropriate to suggest that we can’t trust anymore? I believe that it spite of this  widely reported defalcation scheme, our elders should not be afraid to trust the reverse mortgage loan officer  they are considering hiring.

I believe that the answer is yes to the question raised above.  Afterall, there were warning signs. Greed put blinders on those investors. However, the trust issue will forever be front and center. What the Madoff affair shows us is that each of us bears ultimate responsibility for decisions that we make. This means that seniors will slow down the process even more. They will take their time when it comes to determining who to work with.

Remember this: What people believe to be true is more important than what is really true. Therefore, it is more important than ever for loan officers to show their credentials, experience, and body of work and to be able to communicate in a manner that puts the senior at ease. The concept of differentiation will become more important than ever.  Putting a group of letters in front of your name could help, but is not the entire answer.

While there are some reverse mortgage designations that can be easily bought and obtained, these designations do not have the gravitas nor the intense scrutiny by National Commission for Certifying Agencies (NCCA). The NRMLA sponsored designation will be the standard- the only standard. It is years in the making. I would suggest that you will have wasted your money obtaining those other designations.

The above notwithstanding, seniors want to feel confident that they are making a correct decision.  Therefore they want to see a proven track record. If you can’t provide such a record, and your competitor can, your business could be in serious trouble.   Imagine trying to get into a home with no windows and doors. This picture could represent the magnitude of the obstacles you will face.

A Reverse Mortgage Parable

Once upon a time there was a home owned and occupied by a  group of seniors. Together they sought shelter from their collective problems. Shutters were on each window. It kept out the “light”. This group was oblivious to the possibilities.  Hiding from the economic meltdown was their way of dealing with the problem.

Finally one day there was a knock on the front door. Reluctantly the door was opened. The visitor said, “Why not enjoy the abundance of things that the “light” has to offer”? “You never learn anything in the darkness”, he continued.  In short, nothing  changes unless action is taken.

This story is but a metaphor for the lives many of our seniors are living. Many assume that there is little financial help available. Many believe that that they are doomed to continue to suffer in the “darkness of paucity". Many senior homeowners throughout the country, assume having a lack of funds is a permanent condition.

Those of us in the reverse mortgage industry shed a tear for those who believe this has to be their destiny. They do not have to  suffer from the malaise of insufficient income from Social Security and the like. Rather, their destiny is to live in a world of certainty where their financial nightmares cease.

The past needs to be forgotten. The future takes shape by the actions of today. It is important that each of our seniors know that they have the power to make a change. A change in the situation can be realized through some kind of ACT.  Just as in our parable, the “light” will lead seniors to the discovery of opportunities. Some of these discoveries will take them far out of their comfort zone. This may be scary because of  thoughts that may fill their minds; What if a mistake is made; who should I trust; what if I get contradictory advice?

This is why they must seek out experienced reverse mortgage practitioners. Such a person must have character and competence. Such a person must be honest , trustworthy and be extremely knowledgeable about the program.   Such a person must make things EASY to understand. And such person will tell  a borrower whether a reverse mortgage is even appropriate.

Plenty of help is available. Escaping from  a self imposed mental prison is not difficult. When a senior acts they create their own destiny.

A TARP FOR THE HECM PROGRAM and FOR THE REVERSE MORTGAGE INDUSTRY

Thank goodness 2008 is gone along with its concomitant investment detritus. It was a year where the stock market alone shed 7 trillion dollars of value. The housing market shed another 2 trillion dollars.  It is no wonder that all Americans share the financial malaise contagion.

Accordingly, we need to develop renewed confidence in our institutions and leaders.  Common sense  must be the shibboleth moving forward.  A clear vision is key. My fear, however, is that  our legislators and regulators will act like proverbial lemmings following each other over the precipice.

Now that the TARP money is out of the bag, let’s use it wisely….. What a silly thought. Our legislators and regulators believe that their omnipotence & omniscience   can solve any and all problems.  Politics often converts a good idea into a bad idea. Their new TARP book will be available soon:  The Throw Away Revenue Primer.

Our senior citizens are finding that living on a fixed income is more challenging than ever.  Therefore someone needs to come to their rescue. And someone must come to the rescue of the reverse mortgage industry. 

 Some individuals have alleged that a conspiracy existed to artificially keep the lending limits lower. A TARP like rescue for seniors would have meant a national lending limit of $625,000. instead of $417,000.

Many are dismayed that the margins on the HECM program keep going up.  People ask, “Do they really have to increase”?  Some say that the margins are purposely going up at a time the interest rates are low.  The thinking goes that many in the industry will not care, as the expected rate is well below the floor.  However, what happens when those indices upon which those margins  attach go up as well?   The point is eventually rates will have to go back up.  And when those rates go back up, it will eventually significantly decrease the benefit amounts going into the pockets of our clients.

And rates will go back up. If not to combat the threat of inflation, then to provide a better return for those countries that have invested in our treasuries. The answer to the interest rate queries noted above is that the market is dictating these results. This answer, however does not satisfy everyone.

As I have said many times before, our seniors that we serve should become a protected class. Accordingly, the rules of the game need to change. Transmuting the HECM or any other future reverse mortgage product into just another mortgage program/security to be sold on the secondary market, misses the opportunity to serve those who have made this country great.

The industry needs someone with vision who can reshape and mold the industry to provide the biggest return for our elders. The industry needs interest rates to be kept low. Since the government seems to be in a subsidizing mood, let the government subsidize the reverse mortgage program. This way rates can be kept low and benefit amounts can be kept high.

The rules can be changed if our leaders have the vision.  I call your attention to a politician who had great vision during a disastrous event. In 1994, California suffered an earthquake.   The freeways toppled . Governor Pete Wilson, threw out the rules and regulations and created a new playbook. In two months, along with help from Washington, the damage was repaired.  He violated just about every regulation but got the job done and rebuilt the system to superior standards.

Wouldn’t it be nice if this kind of vision attached to our industry? Imagine changing some of the rules to insure that competent people remain in the industry; imagine insuring that interest rates remain low; imagine having a marketing and education system in place that once and for all corrects the misconceptions that have reigned supreme for the past 20 years.

If the federal government can use funds to bail out businesses that have been poorly run, it certainly can use funds to assist our seniors in the use of the reverse mortgage program. It just takes some imagination. Now TARP can mean Toward A Renewed Program.

 

2009: The year our seniors survive the reverse mortgage disease-Thoughtsclerosis

 
During this past year more articles than ever before have been written about the topic of reverse mortgages. Some articles were factual; some articles were plain wrong; some articles were misleading; and Some articles left one wondering why the writer intentionally used “objective deception” to purposely obscure the benefits of the program.  I have coined the term “objective deception” to mean that the writer, under the guise of being totally objective, twists the facts, or misstates concepts, so the reader is lead to believe that something is true that is not true.

I would suggest that 75 per cent of all articles written had at least one factual error.  When our elders read such drivel, they do not know who or what to believe. This uncertainty breeds a disease I call Thoughtsclerosis, or hardening of the thought process. We can see a similar process happening in the print (& electronic) media today when it comes to the economy. Some experts say “stay away from the stock market”. Other pundit’s say, if you’re going to commit money into the stock market, now is the time”.  Who is right? Which path should one follow?

The purpose of this article is to discover the right path to follow. As it relates to reverse mortgages, I will provide a foundation that will allow our elders to find their “reverse mortgage north star”; a path that will help them become comfortable with their final answer. This path is actually the elixir for Thoughtsclerosis.

All of us have to come to grips with the fact that life is full of problems. We all know about those life gaps that represent the difference between where we are and where we want to be.  Unfortunately we often start off asking the wrong question. And yes, that question is “WHY ME”?

It seems to me, that when things just aren’t going as we wish, the real question is, “What can I do about it”? And that is so true when it comes to reverse mortgages. The discourse I have with my clients center around the various actions that may be appropriate. Typically discussion focuses on choices/options/perspectives/results. When a loan officer can assist his/her borrower to challenge beliefs, it can foster a different level of awareness. Often when this happens, the daunting problem loses its potency.  However, when those ubiquitous misconceptions take on the immutable aura of truth, borrowers will succumb to Thoughtsclerosis.  It is over. They will never find that new level of awareness.

The same task applies to the cherished advisor. Often, I think you will agree, they have a one dimensional or disjointed view of reverse mortgages. They see closing costs and summarily decide the program is no good. They see this one thing, closing costs as representing the whole in a negative way.  It provides them with a ready excuse to halt their examination of the program.  Unfortunately, the senior borrower often mirrors the viewpoint of the advisor. They see what they look for and believe what they find.  Often a prejudice becomes a possession they just can’t let go of.  False beliefs become stronger when they are not prudently confronted. And they cannot properly be confronted, unless and until the borrowers trust their loan officer.

I believe that many of our elders forget that ultimately, the power of choice lies with them. They have the power to re-write their story; they have the power to reframe the movie of their life; they have the power to chart their next course. Only the power of choice can make this happen.

One thing I know. Wishful thinking will not change anything. It takes action. Not any action, but the right action. I urge every senior of reverse mortgage age to CONSIDER whether a reverse mortgage is appropriate. I will tell you, it is not right for everyone.
So author the next chapter in the book of your life. Direct the next scene in the movie of your life. Plot your current course on your life’s map. Here you are today. Figure out where you want to be tomorrow. Then ask, “How can I get there”? What do I need to do? What options do I have? Which works best? “Have I covered all the bases?  What questions have I not asked? And Why, Mr. /Ms loan officer, should I trust you?

Reminding your borrowers that they have the power of choice and enabling them to use the power to ask the right questions will save them from the terminal reverse mortgage illness of thoughtsclerosis.