Partner Post | May 2022 | RMF

Partner Post | May 2022 | RMF

Y E A R 1 | V O L 2 | M A Y 2 0 2 2 PARTNER PPoosst R E V E R S E M O R T G A G E F U N D I N G P A R T N E R N E W S L E T T E R

877-820-5314 | PARTNERS.REVERSEFUNDING.COM

PARTNER POST

Growing old i s a pr i v i lege — thankful l y one that more and more Amer i cans wi l l exper ience. The f i rst Baby Boomers turned 65 in 2011, and s ince then, there ’ s been a swi f t increase in the s i ze of the 65-and-older populat ion, whi ch grew by over a thi rd s ince 2010. In fact , no other age group has seen such fast growth. THIS MONTH, GIVE YOUR CLIENTS A REASON TO CELEBRATE

To celebrate thi s ever -expanding generat ion, May k i cks of f Older Amer icans Month .

Thi s year ’ s theme for the month, Age My Way , focuses on how older Amer i cans can comfor tabl y age in place, spending thei r best years l i v ing independent l y at home. At Reverse Mor tgage Funding LLC (RMF) , our mi ss ion i s help make that a real i ty for as many older homeowners as poss ible. Show your c l ients how a reverse mor tgage can help them improve thei r f inanc ial future to enjoy happier , heal thier ret i rement years at home.

Keep reading to learn more about how a reverse mor tgage can be a ret i rement game changer .

PARTNER POST

HELP OLDER CLIENTS AGE THEIR WAY, WHILE GROWING YOUR BUSINESS

A reverse mortgage can be an effective financial tool to supplement a retirement funds. Here are some of the ways this loan can offer your clients the financial resources they need to age on their own terms:

Continue to grow their investment portfolio The impacts of inflation and an unstable market are a huge concern — and taking withdrawals now can wreak havoc on the health and longevity of their investment portfolios. But by using the funds from a reverse mortgage, your clients can use the equity in their homes and keep their assets invested.

REVERSE INSIDER PARTNER PO T

Help combat inflation The perk of opening a reverse mortgage line of credit early is that your client may borrow more now. If part of the loan is held in a line of credit, the unused portion will grow each month at a rate that is equal to the sum of the interest rate, plus the loan’s annual mortgage insurance premium rate. Delay Social Security benefits As of January 2022, the maximum benefit for someone of full retirement age this year is $3,345 per month. While Social Security benefits can be claimed as early as age 62, collecting them before full retirement age may result in reduced monthly benefits for the rest of that individual’s life — even after he or she reaches full retirement age. Finance expenses and goals The loan proceeds can be used however your clients deem necessary — to pay for home renovations, vacations, health-related expenses, in-home care and so much more. Remind them of all the ways these funds can help create a more fulfilling and enjoyable retirement. Reverse mortgages have the potential to dramatically improve the quality of life of your older clients. Reach out to your Account Executive with any questions on how RMF can help you expand your client base with this opportunity.

IN THE NEWS...

Reverse mortgages are no longer just for homeowners short on cash! Check out what The New York Times had to say in a recent article.

REVERSE INSIDER PARTNER PO T

Thirty percent of consumers work with a paid financial advisor. And 55% of those most likely to pay for an advisor are consumers with an annual income of $100,000 or more. Bottom line: Individuals who use financial advisors tend to have a higher net worth, and their homes generally account for a large portion of their wealth. 3 TIPS FOR EXPANDING YOUR LIST OF FINANCIAL ADVISOR CONTACTS

Financial advisors ultimately want a relationship — not a transaction. And once that trusted relationship is created, they’ll keep coming back.

How can you connect with financial professionals to develop a solid business relationship? It’s all about being prepared for your next networking event:

Polish your elevator pitch. When someone asks, “So, what do you do?”, be ready. You need a brief opener that’s informative and memorable without sounding rehearsed. Use examples to tell a story about how you collaborate with other professionals to enhance their value and increase business for both parties. Have the answers. If someone is asking you questions, that’s a good sign they’re invested in what you have to say. Think about how you would describe your background, your clients and your service offerings in greater details. This is all part of creating a good first impression. Don’t underestimate the value of small talk. Engaging in everyday small talk lets others get to know you on a casual, more personal level. If you’re going to work together, it’s important that you have that level of comfort. Don’t hesitate to set up a casual meeting over coffee or lunch to get to know each other better. That’s why connecting with a financial advisor can have mutual business benefits. You can introduce them to a reverse mortgage loan as a strategic financial tool to expand their clients’ options. Ready to get started?

Find a local Financial Planning Association near you, head to a meeting and put your networking skills to the test.

PARTNER POST

REVERSE MORTGAGE NOT AN OPTION FOR SOME CLIENTS? WHAT ABOUT THEIR PARENTS?

Just because your c l ients may not be ready for a reverse mor tgage doesn ’ t mean someone el se in thei r l i fe i sn ’ t . Cons ider c l ients who are par t of the “Sandwi ch Generat ion” — those juggl ing thei r fami l y ’ s monthl y expenses , sav ing for thei r chi ldren ’ s educat ion, and preserv ing funds for thei r ret i rement por t fol ios . Plus , they are s imul taneous l y f inanc ial l y respons ible for thei r aging parent ( s ) , who may l i ve on a l imi ted income and might even be carry ing debt into thei r ret i rement years . One source of rel ief can be an older loved one ’ s home equi ty . A reverse mor tgage can be a pract i cal solut ion to prov ide the older generat ion wi th needed funds and thereby al lev iate the f inanc ial st rain. An untapped, and often over looked, source of funds Homeowners age 62 and older col lect i vel y own $10.19 t r i l l ion in home equi ty weal th. According to the Center for Ret i rement Research at Boston Col lege, home equi ty i s general l y the largest asset for most households , yet i t i s typi cal l y underut i l i zed for ret i rement .

Leveraging those funds , so they can age comfor tabl y , of fers a smar t f inanc ial planning opt ion for the r ight borrowers , whi le rel iev ing the burden on thei r adul t chi ldren.

An al ternat ive to long- term care insurance

According to an AARP study , showed 78% of caregivers incur rout ine out -of -pocket costs that average $7,242 annual ly. I f long- term care i s needed, the expense skyrockets ! The average annual cost for a nurs ing home i s $94,900 and $54,000 for ass i sted l i v ing fac i l i t ies . nstead of rearranging thei r own f inanc ial plans to meet the needs of thei r parents , members of the sandwi ch generat ion can di scuss wi th thei r parents how a reverse mor tgage may help f i l l the f inanc ial gaps in thei r parents ’ ret i rement funds .

CUSTOMER RESOURCE:

It can be tough to determine if a reverse mortgage is a right fit for aging parents. Check out RMF’s very own Professor Craig as he explores the nuances in this blog.

PARTNER POST

AN EXCLUSIVE MORTGAGE SOLUTION FOR HOMEOWNERS AS YOUNG AS AGE 55!

To help you gain a more competitive edge in the market and write more business, we’ve extended eligibility for our Equity Elite® suite of products! RMF research shows that broadening the eligibility to borrowers age 55+ in select states increases market opportunity by 2.7 million households today — that’s $848 billion in home value.

So how does it differ from a traditional reverse mortgage loan?

Younger borrowers Reverse mortgages are no longer reserved for homeowners aged 62 and older. Equity Elite® offers reverse mortgages for borrowers age 55+ in select states.* Additional housing options This loan is available to owners and buyers of non- FHA-approved condos and homes in age-restricted communities.** Access to more funds With an Equity Elite® loan, borrowers can leverage more home equity, and have the potential to get approved for loan amounts up to $4 million. # Lower upfront costs Equity Elite® has no upfront or ongoing mortgage insurance premium, which can mean lower closing costs than a traditional reverse mortgage, saving clients money on the loan. Call your Account Executive today to learn how you can expand your pool of qualified prospects! And don’t forget to ask about Equity Elite® ZERO, which offers a lender credit that may be applied to most closing costs. †

Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state. Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example, 30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs. 1Not tax advice. Consult a tax professional. 2 If part of the borrower’s loan is held in a line of credit upon which they may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on their loan. 3 The information being shown is for illustrative purposes only. Scenario is a 72-year-old borrower, with a CA home valued at $800,000, securing a Reverse Mortgage Funding LLC HECM reverse mortgage line of credit (LOC) as of 3/22/2022. LOC (i.e. the unused portion of borrower's credit limit) will grow at 4.3% + .5%. The initial APR is 4.3%. The loan has a variable rate, which can change monthly. The rate is tied to the 1 YEAR CMT plus a margin of 3.0%.There is a 5% lifetime interest cap over the initial interest rate. This means that the maximum interest rate that could be imposed is 9.3%. This example assumes that the rate remains flat at 4.3%. Rates and funds available may change daily without notice. Closing costs vary by property state. Please call or visit online for further details. *Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit www.reversefunding.com/equity- elite for details. **This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. Not applicable in all states; MA imposes a maximum loan amount of $2MM. Visit www.reversefunding.com/equity-elite for details. With this pricing option, borrower receives a lender credit covering nearly all closing costs. There is a non-refundable independent counseling fee of approximately $125 on average, which the borrower pays directly to the counseling agency. Terms and conditions apply. Not available in all states. † # Ready for Next Month's Partner Post? You can expect to find it in your email inbox in early June. Thank You for Reading!

NOT FOR CONSUMER USE.

This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. ©2022 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www.nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker-NYS Department of Financial Services -in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender. For California consumers: For information about our privacy practices, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval L4535_exp0423