Monetizing Home Equity - Percy Ihara

Monetizing Home Equity - Percy Ihara

Monetizing Home Equity with Today’s Reverse Mortgage Presented by: PERCY IHARA NMLS ID #582944 , Reverse Mortgage Funding LLC

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. ©2021 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941 (www.nmlsconsumeraccess.org). This material is for general information purposes only and is not for use with individual consumers or for distribution to the general public. The information herein is not intended as legal, tax or financial planning advice and should not be relied on or construed as such. These materials have not been reviewed, approved, or issued by FHA, HUD, 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. L3736-Exp032022_v092021

Today’s Reverse Mortgage

How Reverse Mortgages Work & Their Benefits

Agenda

Traditional & Proprietary Reverse Mortgage Options

Solutions to Common Financial Insecurities

A Look at Reverse Mortgage Funding LLC

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Today’s Reverse Mortgage

DID YOU KNOW? As of July 2021, U.S. homeowners age 62+ have $9.2 trillion in housing wealth †

§ 99% of Reverse Mortgages are HECMs or “Home Equity Conversion Mortgage” § President Reagan signed the HECM program into law in 1989 § HECM program is federally-insured * by FHA § Over 1 million Americans have used a HECM § Proprietary reverse mortgages are gaining popularity

DID YOU KNOW? 44% of Americans (age 60-70) still have a mortgage

17% say they’ll never pay it off ‡

*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. † Source: NRMLA/RiskSpan Reverse Mortgage Market Index, July 2021. ‡ Source: American Financing; AARP.com

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The Evolution of the Reverse Mortgage

First Baby Boomers Turn 62 & HECM for Purchase Introduced

First Ever Reverse Mortgage Issued

HECM Loan Limit Raised to $822,375

2009

1961

2021

2001

2017

1989

2015

*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.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement (2 nd Edition)

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“The reverse mortgage has helped to preserve a legacy for heirs. It must not be viewed in isolation, but rather as how it contributes to an overall plan. The value of the reverse mortgage can mostly be found in its diversifying benefits for investment assets in retirement.”

Wade D. Pfau, Ph.D., CFA Professor of Retirement Income, The American College

Source: Advisor’s Perspectives, April 15, 2019

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Monetizing Home Equity Has a Broad Impact

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Finance Banks & Credit Unions Advisors Insurance Agents CPAs

Real Estate Realtors ® Mortgage

Brokers Builders Developers

Monetizing

Home Equity

Homecare Home Caregivers

Legal Estate Planning Gray Divorce Probate Elder Law

Handyman & Renovations Aging in Place Specialists

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

How a Reverse Mortgage Works

A Reverse Mortgage Can Help Your Clients: § Refinance existing mortgage debt, to dramatically reduce their monthly payments * § Consolidate debts such as high-interest credit cards, auto loans, etc. § Improve cash flow

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§ Gain payment flexibility, for more financial control § Pay for large purchases, like a new automobile § Assist a grandchild headed off to college § Fund home renovation projects § Pay for medical expenses & long-term care § Buy a home that better fits their needs

*As with any mortgage, borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Which of Your Clients are Eligible? At a minimum, to qualify for a reverse mortgage your client must: § Be age 62 or older for a HECM § Be age 55 or older in select states * for Equity Elite ® § Own their home and live in it as their primary residence § Be able to keep up with loan obligations, including property taxes, insurance, and property maintenance § Have sufficient home equity

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*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.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

What Types of Properties are Eligible?

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§ Single-family homes § Condominiums meeting certain requirements § Planned Unit Developments (PUDs) § Two- to four-family homes § Must be owner-occupied § Manufactured homes meeting HUD guidelines

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 and other government agency.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Reverse Mortgages Workflow

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Conclusion: Terminate HECM

Decision: Apply for HECM

Decision: Get HECM

Decision: Seek Counseling

Manage HECM

• Mortality • Mobility • Refinance • Foreclosure

• Withdraw $ • Pay taxes and insurance & withdraw funds

• Home appraisal • Choose terms and up-front draw

Learn about HECM options

§ The percentage of the house value that can be borrowed (Principal Limit Factor) = a function of borrower’s age (+) and the loan’s interest rate (-). Typically, 30%-70% of house value. § The house value = the lesser of the appraised value of the property or the maximum loan amount for that area of the U.S. ( currently $822,375 nationally ).

41 © 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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How Are Your Clients Protected?

1.

Reverse mortgages are non-recourse loans (borrower won’t owe more than the appraised value of the home at time of repayment)

2.

Advance loan disclosures and loan illustrations are provided at time of application

3.

Counseling is required for all HECM applicants – provided by HUD, AARP & other reputable orgs

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 and other government agency.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Traditional & Proprietary Reverse Mortgage Options

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FHA-Insured * HECM Program Available for single-family property, HUD-approved condo, or up to 4-unit home (HECM for Purchase not available on multi-unit properties) The home must be their primary residence Proceeds can be used to refinance a property or purchase a home

Can be used to pay off a first mortgage or Home Equity Line of Credit (HELOC) A HECM cannot be reduced, called or canceled, if the terms of the loan are met

Clients downsizing or rightsizing can use a HECM to finance the purchase of their new home As with any mortgage, the borrower must meet their loan obligations, keeping current with property taxes, insurance and keeping their home in good condition. If obligations are met, the loan does not have to be repaid until the last surviving borrower (or qualified non-borrowing spouse) passes away, sells the home or moves out

* 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.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Flexible Funding Options * Available with a HECM

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Lump sum

Fixed monthly advances

A combination of these—you choose

Line of credit

Purchase a new home (HECM for Purchase)

Your clients can also choose to change how they receive their funds in the future.

* Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable-rate mortgages.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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*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. † Not applicable in all states; MA imposes a maximum loan amount of $1.5MM. Visit www.reversefunding.com/equity-elite for details. RMF’s “private label” product is: § Available to homeowners as young as age 55 in select states * § Suitable for higher value homes – loan amounts up to $4 million † § Available for more condominiums – FHA-approval ‡ is not required § Available to borrowers seeking low up-front costs – No mortgage insurance premium means lower up-front costs § Equity Elite® ZERO offers a lender credit to be applied towards most closing costs || § Equity Elite® Line of Credit available in AZ, CA, CO, FL, IL, NJ, and VA with more states to follow The Equity Elite ® Reverse Mortgage

‡ 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. || 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.

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© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Which Financing Option is Right for Your Clients?

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Home Equity Line of Credit

Traditional Mortgage

HECM Reverse Mortgage

Equity Elite® Reverse Mortgage

Converts home equity into loan funds?

YES

YES

YES

YES

*

Age-based lending

NO

NO

62 or older

55 * or older

Loan Limit

No set amount

No set amount

Up to $822,375

Up to $4 million

Flexible repayment feature? Minimum monthly payment required? Non-recourse feature (Borrower won’t owe more than the home is worth when the loan is repaid)

NO

NO

YES †

YES †

YES

YES

NO

NO †

†

NO

NO

YES

YES

Income Qualifications

Stricter

Stricter

More Lenient

More Lenient

Can be used to buy a home?

No

Yes

Yes

Yes

*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. † As with any mortgage, the borrower must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Solutions to Common Financial Insecurities

Solving for Common Financial Insecurities

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Wrong Tool, Wrong Time

Flip the Switch: Forward to Reverse

Budgeting on a Fixed Income

Eliminate Mandatory Monthly Payments *

Early Retirement / Active Aging

Consolidate Debt & Increase Investments

Rightsizing a Home for Retirement

Buy a New Home Without a Monthly Payment *

Legacy Planning

Increase Portfolio & Assets to Give With a Warm Hand

Preparing for Future Healthcare & Living Expenses

Create an Emergency Line of Credit for Future Use

High Income / Property Solutions

Eliminate Costly Mortgage Payments *

*As with any mortgage, borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Wrong Tool, Wrong Time

John, 65, and May, 62, have a beautiful midcentury home worth $500,000. They had made renovations preparing for their “third act” already and wanted to stay in their home. Now that they are both retired, they wanted to see what other options they had from their forward mortgage with 20+ years on it. Flip the Switch with HECM: § Avoided burdensome monthly payments § Used the home to pay for itself (e.g., taxes * and insurance) § Created a flexible line of credit Changing to a reverse mortgage from a forward mortgage just made sense at this point in their life.

For illustrative purposes only. * Not tax advice. Consult a tax professional. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION. The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly 1.75 as of Feb 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $100,000 lien. The initial interest rate is 1.84% (1.84% APR), adjustable interest rate 1.84 % tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $4,196.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

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© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION. The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly 1.75 as of Feb 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $100,000 lien. The initial interest rate is 1.84% (1.84% APR), adjustable interest rate 1.84 % tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $4,196.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

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Traditional HECM

Frances is 75 years old with a home worth $500,000. She paid off the mortgage on her home, but currently has a Home Equity Line of Credit (HELOC) on the property. With the HELOC, she must make mandatory monthly principal and interest payments. She decides to refinance her existing home equity loan with a reverse mortgage and secures a HECM line of credit that unlike a HELOC, will GROW when left untouched. * Traditional HECM: § Reduced or eliminated mandatory monthly payment § Secured financial stability for any future needs

§ Avoided tapping into savings and invested assets for income Frances enhanced her financial stability for herself using her home.

For illustrative purposes only. * If part of the loan is held in a line of credit upon which the borrower 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 the loan. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly as of Mar 29th, 2021. Assumptions include a home value of $500,000 and a 75-year-old borrower with a $50,000 lien. The initial interest rate is 1.84% (1.84% APR), adjustable interest rate of 1.84% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,781.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly as of Mar 29th, 2021. Assumptions include a home value of $500,000 and a 75-year-old borrower with a $50,000 lien. The initial interest rate is 1.84% (1.84% APR), adjustable interest rate of 1.84% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,781.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Early Retirement

Carl, age 62, had life drastically change in a blink of an eye when his wife tragically died, leaving him with: § Funeral costs § Mortgage payment, car payment, and credit card bills § Catastrophic effect on his retirement future With the added loss of income, he was compelled to refinance his home worth $500,000 with a traditional mortgage in order to overcome his debt. HECM Reverse Mortgage : § Eliminated mortgage payments (saving a total of $1,200/month) § Was able to pay off necessary bills within the first year § Moved money into money-earning investments With the financial support of a reverse mortgage, Carl found peace of mind. He was ultimately able to move up his retirement date by 8 years and travel.

For illustrative purposes only. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly as of Feb. 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $200,000 lien. The initial interest rate is 1.82% (1.82% APR), adjustable interest rate of 1.82% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,812.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM CMT 1yr monthly as of Feb. 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $200,000 lien. The initial interest rate is 1.82% (1.82% APR), adjustable interest rate of 1.82% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,812.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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HECM for Purchase

Bob and Amy just turned 62 and realized that their current home was not meeting their current lifestyle needs or long-term goals. They wanted to be closer to their kids and grandkids, have less home maintenance, and have improved livability. They receive $375k of net equity from the sell of their current home. They found the perfect home for $500k, but they don’t want to take on more debt with a traditional mortgage. HECM for Purchase: § Bought a rightsized home for $500,000 (only $260,000 down) § Not required to make $675 monthly mortgage payments ($8,100/yr savings) § They did not touch their retirement funds- giving them more peace of mind § Saved over $115,000 of net equity – used to buy vacation home Bob and Amy can buy a home that fits their needs, save on monthly expenses, and add funds to their portfolio.

For illustrative purposes only. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM for Purchase as of Feb 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower. The initial interest rate is 1.82% (1.82% APR), adjustable interest rate of 1.82% tied to one-month CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $4,366.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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32

The estimates shown are based on a Colorado property and the HECM for Purchase as of Feb 23rd, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower. The initial interest rate is 1.82% (1.82% APR), adjustable interest rate of 1.82% tied to one-month CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $4,366.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Legacy Planning

Ron and Nancy, both 62, want to financially help their only child, Debra, and her growing family now, and after they gone. They own their home valued at $500,000 free and clear and they wants to give Debra $125,000 to help her fund her children’s future education and her and her husband’s retirement. HECM Reverse Mortgage: § Secured over $235k income-tax-free * cash with a LOC that grows † each year by $10k ($135k available the first year, $100k after year 1) § No mortgage payments, no matter how they draw from the LOC § Option to pay back any amount at any time – available again in his LOC tax-free * § Gifted the funds to Debra in annual installments of $10,000 (tax-free for her * ) Ron and Nancy can give to their daughter and grandchildren with a warm hand now and help ensure their family’s financial security when they pass.

For illustrative purposes only. * Not tax advice. Consult a tax professional. † If part of the loan is held in a line of credit upon which the borrower 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 the loan. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM as of Mar 29, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $137,000 lien. The initial interest rate is 1.84% (1.82% APR), adjustable interest rate of 1.84% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,182.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214- 1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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The estimates shown are based on a Colorado property and the HECM as of Mar 29, 2021. Assumptions include a home value of $500,000 and a 62-year-old borrower with a $137,000 lien. The initial interest rate is 1.84% (1.84% APR), adjustable interest rate of 1.84% tied to one-year CMT with a margin of 1.75%. In this example, closing cost include an origination fee of $6,000, third-party closing costs of $3,182.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $10,000 depending on purchase price or appraised value. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214- 1265 or visit reversefunding.com for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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HECM Line of Credit

Linda is 62 and has been concerned about her retirement, life’s unexpected health challenges, and a home that needed modifications in a rising property tax location. She inherited her parents $500,000 home yet watched them struggle in their final years to pay the bills and she was determined that her story would be different. She had 20 years left on the $100,000 mortgage with monthly payments of $800. HECM Reverse Mortgage: § Eliminated $625 monthly mortgage principal and interest payments (saving $7,500/year) § Secured a LOC for over $135k that grows * tax-free † each year by $6,000 § $35k available for home modifications so she can actively age well in place Linda solved her retirement income gaps and ultimately decided to move up her retirement goals so she can retire at age 67.

For illustrative purposes only. * If part of the loan is held in a line of credit upon which the borrower 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 the loan. † Not tax advice. Consult a tax professional. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Information shown for illustrative purposes only. Assumptions are: (1) 62-year-old; (2) Colorado home valued at $500,000; (3) LOC will grow at 2.34% above the CMT 1yr monthly Adjustable Rate Mortgage (ARM), which uses the 1-Year CMT plus a margin of 1.75%. Initial APR is 1.84% as of 03/29/2021, which can change annually. 1.84% annual interest cap, and 11.84% lifetime interest cap over the initial interest rate. Maximum interest rate is 11.84%; (4) the rate remains at 1.84%; (5) no draws by borrower. Interest rates and funds available may change daily without notice.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Information shown for illustrative purposes only. Assumptions are: (1) 62-year-old; (2) Colorado home valued at $500,000; (3) LOC will grow at 2.34% above the CMT 1yr monthly Adjustable Rate Mortgage (ARM), which uses the 1-Year CMT plus a margin of 1.75%. Initial APR is 1.84% as of 03/29/2021, which can change annually. 1.84% annual interest cap, and 11.84% lifetime interest cap over the initial interest rate. Maximum interest rate is 11.84%; (4) the rate remains at 1.84%; (5) no draws by borrower. Interest rates and funds available may change daily without notice.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Equity Elite ®

Roger is a 70-year-old retired dentist with a primary residence worth $1.5 million. He is widowed and would like to spend more time at his second home in Florida with his son, daughter-in-law, and grandchild. He has been leveraging his home over time, but his financial advisor is concerned about his remaining mortgage debt on both properties. He currently has a $400k mortgage with 4% interest and 25 years left on his primary residence after refinancing. Equity Elite® Reverse Mortgage: § Eliminated $2,000/month payment – $24,000 annual savings § $147k available at closing – the exact amount he needs to payoff his home in Florida, eliminating his $700/month payment = $8,400 yearly savings § $32,400 total annual savings and no more mandatory mortgage payments

Roger managed to free up enough income to spend more time with his grandkids in Florida and implement a dental scholarship in his late wife’s name.

For illustrative purposes only. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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For illustrative purposes only. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance. Estimates shown are based on a (1) 70-year-old borrower; (2) Colorado property valued at $1.5 million; and the (3)Equity Elite Fixed 4.950% as 03/29/2021. Recent interest rates offered by Reverse Mortgage Funding range from 4.950% to 7.974% Annual Percentage Rate for Fixed rate loans. Closing costs may include an origination fee, third-party closing costs ranging from $2,131.98 to $35,014.17 depending on purchase price. Please contact Reverse Mortgage Funding LLC (RMF) for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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For illustrative purposes only. As with any mortgage, the borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance. Estimates shown are based on a (1) 70-year-old borrower; (2) Colorado property valued at $1.5 million; and the (3)Equity Elite Fixed 4.950% as 03/29/2021. Recent interest rates offered by Reverse Mortgage Funding range from 4.950% to 7.974% Annual Percentage Rate for Fixed rate loans. Closing costs may include an origination fee, third-party closing costs ranging from $2,131.98 to $35,014.17 depending on purchase price. Please contact Reverse Mortgage Funding LLC (RMF) for details about credit costs and terms.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

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Get to Know Reverse Mortgage Funding LLC

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RMF Highlights

Well capitalized, with broad institutional support

NATIONAL LENDER One of the nation’s top loan originators *

RMIT (our parent company) is an affiliate of Starwood Capital Group, a global private investment firm and an innovator in non-agency mortgages.

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Education. Origination. Servicing oversight. Securitization. Fully integrated reverse mortgage finance company

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Managed the market-leading reverse mortgage business Leadership: Former MetLife Bank executives

*Source: Reverse Market Insight (RMI), National Market Snapshot as of July 2021.

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© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

44 Your Clients Can Be Confident with RMF as Their Lender § RMF is committed to—and recognized for—providing extraordinary customer service. We provide an experience that’s tailored to each individual § We not only make loans, but after closing we service and maintain a long-term relationship with our customers § We are proud to be one of the nation’s top reverse mortgage lenders § As a direct lender, we have certain pricing advantages—and we pass those savings on to our customers We’re proud to continually earn high praise from our customers:

Source: RMF Customer Satisfaction Survey 2021. Source: LendingTree and Trustpilot Ratings and Reviews, as of September 2021.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

Honest, Personalized Service for Your Clients

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Our Customer for Life Commitment * means we’re with your clients every step of the way with personalized, ongoing service—from our first conversation on day one, throughout the entire loan process, and even after closing. We’re committed to ensuring an optimal experience, and we’re here for each borrower throughout the life of their loan.

It’s important for your clients to do their homework and find a lender that makes them feel informed, confident and comfortable in their decision-making. RMF is committed to delivering a great product and great pricing. We’re so confident in it that we created our Price Match program : If we are unable to match or beat a competitor’s pricing, we’ll give your client a $1,000 gift card. †

*RMF’s Customer for Life Commitment Program is subject to change or cancellation at any time and without notice. † Price Match Program is subject to Reverse Mortgage Funding’s LLC right to rescind or modify the terms of this offer without prior notice as well as additional terms located at www.reversefunding.com/price-match-terms-of-use-and- promotional-rules.

© 2021 Reverse Mortgage Funding LLC. NMLS ID # 1019941. NOT FOR FURTHER DISTRIBUTION.

46 Get a Real-Time Client Illustration in Just 10 Minutes Only Four Pieces of Info Required:

PERCY IHARA Reverse Mortgage Specialist NMLS ID #582944 808.234.3117 [email protected] reversefunding.com/percy-ihara Branch Location Branch NMLS ID #2104861 1585 Kapiolani Blvd , #1100 Honolulu, HI 968145

1. Age of Youngest Client 2. Estimated Home Value 3. Total Mortgage Debt (if any) 4. Zip Code

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This material is intended for financial professionals only and is not intended for use by or distribution to consumers. Consumers should not rely on this material for retirement-planning or other advice and should consult with the appropriate financial professional. 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. This material is provided for convenience only, and Reverse Mortgage Funding LLC and its affiliates (“RMF”) make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and RMF is under no obligation to provide updated information. Materials or statements made by a third party are those of the third party and do not necessarily reflect the official policy or position of RMF. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, compliance or legal profession. Some information may contain paid or sponsored content or speakers. Mention of product, process or service shall not be construed as an endorsement or recommendation by RMF.

©2021 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. This material is for general information purposes only and is not for use with individual consumers or for distribution to the general public. The information herein is not intended as legal, tax or financial planning advice and should not be relied on or construed as such. These materials have not been reviewed, approved, or issued by FHA, HUD, 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. L3736-Exp032022_v092021