Reverse Insider | Volume 1 | November 2021

Reverse Insider | Volume 1 | November 2021

I S S U E 1 | V O L 1 | N O V E M B E R 2 0 2 1 REVERSE Insider R E V E R S E M O R T G A G E F U N D I N G N E W S L E T T E R

CELEBRATING OUR HEROES We pay tribute to our military veterans for their selfless service to our country.

RMF appreciates all who have served our country. To show our gratitude, we are proud to offer our Veteran Discount Program. RMF's VETERAN DISCOUNT PROGRAM: HELPING VETERANS RETIRE MORE FREELY

REVERSE INSIDER

HOW A REVERSE MORTGAGE LOAN CAN BENEFIT YOUR RETIREMENT JOURNEY

For older adul ts , high debt burdens can be a s igni f i cant barr ier to borrowing f rom home equi ty . In fact , research f rom The Ohio State Uni vers i ty found that 51% of adul ts age 62 or older — even those wi th good credi t scores — are unable to obtain a home equi ty l ine of credi t because thei r debt - to- income rat io i s too high. Even for those wi th suf f i c ient home equi ty , t radi t ional mor tgage products are harder to secure. According to the research, 36% of borrowers have been denied a Home Equi ty L ine of Credi t (HELOC) or a second mor tgage despi te hav ing adequate equi ty bui l t up in thei r home.

So, i f you ’ re planning to use a t radi t ional mor tgage to fund your ret i rement , you may need a backup plan.

REV RSE INSIDER

REVERSE INSIDER

Is it time to break with tradition?

If you're at or near retirement age and in the market for a HELOC or a second mortgage, you may qualify for a less conventional way to secure the needed funds — a reverse mortgage loan. Reverse mortgages — both federally- insured** Home Equity Conversion Mortgages (HECMs) and proprietary loans — are gaining popularity as flexible, highly-customizable mortgage products that may be wiser choices for adults age 60 and over, depending on your situation. Income and credit requirements are more lenient, but 50% equity or more in your home is usually required to get a reverse mortgage.

For qualified applicants, these products can be smart financial tools to leverage the funds amassed in your home, free up cash and help to create a more financially secure retirement lifestyle — all while continuing to own your home with your name on the title and live in it as your primary residence. The funds can be accessed as a lump sum, monthly payments, a standby line of credit to fall back on as needed, or any combination of these. † Best of all, you can use the money as needed to supplement your income, cover medical expenses, travel, make home renovations and more. And unlike traditional home equity loans, reverse mortgages don’t require monthly payments. You can pay as little or as much as you want, when you want. You may even pay off the loan early with no repayment fees. As with a traditional loan, borrowers are still responsible for keeping up with their loan obligations, including

paying property taxes and homeowners insurance and keeping up with basic home maintenance and repairs.

An overlooked retirement strategy

Too often, reverse mortgages are dismissed as “last resort” loans. But with noted financial advisors conducting research, more are finding that a reverse mortgage can greatly increase the probability of a successful long-term financial plan under the right circumstances.

REVERSE INSIDER

HAPPY VETERANS DAY TO ALL WHO SERVED!

NO ONE I S MOR E DE S E RV I NG OF A F I NANC I A L L Y SOUND R E T I R EMENT

There are no required monthly payments. Unlike traditional mortgage loans, reverse mortgages don’t require monthly payments. You can pay as little or as much as you want, when you want. You may even pay off the loan early with no repayment fees. As

On November 11th of each year in the U.S., we pay tribute to our military veterans for their selfless service to our country, putting their lives on the line to defend the freedoms we all enjoy. But many veterans are faced with the same issues as retired civilians — having enough funds to sustain a comfortable retirement. For those who qualify, a reverse mortgage can be a life-changing financial tool. Following their military retirement, 41% of the 581,000 unemployed veterans in 2020 were age 55 and over. This is only compounded by the fact that 60% of veterans age 65 and older have some kind of disability, increasing the importance of having the option to age in place. A reverse mortgage can be especially beneficial to this segment of the population. If you’re a veteran, here’s why you may want to consider a reverse mortgage as part of your plan for the future:

with a traditional loan, borrowers are still responsible for keeping up with their loan

obligations, including paying property taxes and homeowners’ insurance and keeping up with basic home maintenance and repairs. Your spouse is protected . With a Home Equity Conversion Mortgage, a type of reverse mortgage, an eligible non-borrowing spouse is not required to move out, take ownership or demonstrate other legal rights to remain in your shared home within a 90-day window of a life-changing event. The non- borrowing spouse may continue to reside in the home as their principal residence, as long as they meet certain eligibility requirements and uphold the terms of the loan.

You or your heirs will not owe more than the home’s current value when the loan is repaid. Reverse mortgages are generally non-recourse loan. That means that a borrower, or your estate, will not owe the lender more than the home’s current value when the loan is repaid. Your heirs will still inherit your home, but they’ll have to pay back the loan balance if they want to keep it; this includes the amount of funds you used plus accrued interest and fees. They can also sell the home to repay the loan. And once it’s repaid, they retain any remaining equity. To help U.S. veterans retire more freely, we're proud to offer our Veteran Discount Program. Call RMF today to learn more about this offer.

Myth

My heirs won't be able to inherit my home.

Fact

Heirs will still inherit the home. If heirs choose to keep the home, they will have to pay back the loan balance plus accured interest and fees. Or, they can sell the home to repay the loan. Once the loan is repaid, any remaining equity is theirs to keep.

At Reverse Mortgage Funding LLC, we recognize the sacrifices made by the men and women who have served in our country’s armed forces. As a token of our appreciation, and our way of saying thank you, we have created our new Veteran Discount Program. Available to U.S. military veterans and their spouses (including the spouses of deceased veterans), the new program can give anyone who can offer documentation of their service a credit of up to $450* toward appraisal costs on their reverse mortgage. Call RMF to learn more today!

We Want to Show Our Thanks

*RMF’s Veterans Discount Program is subject to change or cancellation at any time and without notice. This program offering can only be redeemed with Reverse Mortgage Funding LLC. Consumer must pay for the appraisal upfront. This program offering is valid for an appraisal credit of up to $450.00 off allowable closing costs. In some instances, the credit may not be valid or may be less due to loan program restrictions. Program offering may not be valid with low cost loan programs or other lender credits. Home Equity Conversion Mortgage offers apply to refinances only. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. This offer is available with RMF’s Equity Elite product. Loans currently in process do not qualify. The credit will be applied at the closing of your mortgage loan with Reverse Mortgage Funding LLC, and it will be shown on the HUD-1 Settlement Statement. Loans must be closed and funded with Reverse Mortgage Funding LLC as the lender. All loans are subject to approval. Program, rates, terms and conditions apply and are subject to change without notice. Program offering is not transferable. No cash value. This program offering is not redeemable for cash or cash equivalents. Not valid with any other discount or promotional offers. Some restrictions apply. Void where prohibited, taxed or restricted by law.

REVERSE INSIDER

MAKE AGING IN PLACE EASIER THE RMF V E T E RAN D I S COUNT P ROGRAM : HE L P I NG V E T E RANS R E T I R E F R E E L Y

At Reverse Mor tgage Funding LLC (RMF) , we ’ re dedi cated to helping older Amer i cans achieve f inanc ial peace of mind in ret i rement — in the comfor t of thei r own home. We of fer reverse mor tgage products for homeowners as young as 55 in cer tain states , so more and more people can leverage thei r home equi ty to l i ve the ret i rement l i festy le they deserve. # For veterans , st retching funds to enjoy a comfor table ret i rement can al so be a chal lenge. To say thank you for thei r sel f less serv i ce, RMF created the Veteran Di scount Program. Our program, our promi se As par t of the Veteran Di scount Program, al l el igible U.S. mi l i tary veterans and thei r spouses ( inc luding spouses of deceased veterans ) , wi l l recei ve a credi t of up to $450* toward apprai sal costs on thei r reverse mor tgage. To recei ve thi s of fer , al l you need i s documentat ion of serv i ce. A reverse mor tgage can help increase cash f low dur ing ret i rement , al l whi le you cont inue to l i ve in and own your home.

I t can be a power ful f inanc ial tool for aging in place - and funding any necessary home modi f i cat ions . And i f you determine that your ex i st ing home or i ts locat ion i s no longer sui table, you can even use a reverse mor tgage to purchase a new home. As a borrower , you can leverage your equi ty as a lump sum, a monthl y payment , or a l ine of credi t that ' s avai lable i f and when you need i t . Wi th no monthl y payments , you can pay as l i t t le as you ’ d l i ke, or nothing at al l unt i l your loan becomes due. But keep in mind, you ’ re st i l l respons ible for proper ty taxes and homeowners insurance, as wel l as keeping up wi th bas i c home maintenance.

REVERSE INSIDER

OVERCOMING THE SUPPLY CHAIN CRISIS I S I T T I ME TO J U S T BUY L E S S S TUF F ?

There ’ s a lot to be joyful about thi s hol iday season — but rel iable gi f t - gi v ing inventory and t imel y shipping i s not on the l i st . Consumers are get t ing hi t hard by warnings f rom retai lers of impending shor tages , the r i s ing costs of goods and late shipments . Elect roni cs — f rom smar tphones to workout machines to game consoles — are espec ial l y subject to shor t suppl y as we enter the hol iday season. What gives? A combinat ion of staf f ing i ssues , late arr i val of essent ial par ts and l inger ing impacts of the pandemi c are al l cont r ibut ing to thi s year ’ s suppl y chal lenges . U.S. retai lers wi l l face an ext ra $223 bi l l ion in the cost of goods thi s shopping season. Inev i tabl y , a por t ion of those higher costs wi l l be passed along to consumers . The problem i s fur ther exacerbated by consumer demand, as people tend to buy more and stock up when faced wi th suppl y uncer taint ies — and they ’ re wi l l ing to pay more, too. Deloi t te suggests Amer i cans wi l l spend between 7-9% more than last year ’ s hol iday season, total ing $1.3 t r i l l ion.

REVERSE INSIDER

Are you worried about paying higher prices due to the ongoing supply chain issues, or worse, having no holiday gifts to give? The good news is, if you’re flexible, there are options to make the most of it.

Buy early. According to Chain Store Age, 22% of consumers said they plan to shop earlier this year. In fact, 25% expect to do most of their shopping before Thanksgiving, while 10% aimed to have it done before Halloween. By shopping sooner, consumers hope to score big savings on early-bird sales and spend less on expedited shipping. Shop local. Small Business Saturday is often observed on the Saturday following Thanksgiving. It’s a day set aside to shop your own downtown for all the local goods that are available. Save yourself the stress of backordered lists, shipping delays and more by spending your money on Main Street USA. Be thankful. If supply chain challenges persist, consumers will have no choice but to curb spending habits. For now, making a clear distinction between luxuries and what you actually need to maintain a comfortable lifestyle can make a huge difference on your budget. A positive mindset plays a huge role. Would you be just as happy to share a Thanksgiving dinner with your loved ones, for example, if you weren’t able to feast on turkey? Now, more than ever, it’s a time to give thanks.

Focus on experiences. Rather than the usual sweater or jewelry, get creative and give the gift of a memorable experience with loved ones. Get family together for a holiday outing such as a concert, sporting event or even just a walking tour of a historic landmark in your area. Making the most of what you have. Almost half of Americans worry they won’t have enough money to see them through retirement. But if you’re a homeowner age 55 or older, a reverse mortgage loan can help you leverage the equity built up in your home to supplement your retirement income — all while continuing to live in it and retain ownership. The funds are available as a lump sum, monthly payments or a line of credit that’s available if and when you need it. Best of all, the money can be used as you wish to live the retirement you deserve. ‡ †

Ready for Next Month's Reverse Insider? You can expect to find it in your email inbox in early December as the holiday season is in full swing. Thank You for Reading!

**Thi s mater ial has not been rev iewed, approved, or i ssued by HUD, FHA, or any government agency . The company i s not af f i l iated wi th or act ing on behal f of or at the di rect ion of HUD/FHA or any other government agency . †Borrowers who elect a f i xed rate loan wi l l recei ve a s ingle di sbursement lump sum payment . Other payment opt ions are avai lable onl y for adjustable rate mor tgages . ‡As wi th any mor tgage, you must meet your loan obl igat ions , keeping current wi th proper ty taxes , insurance, and maintenance. #Avai lable to borrowers as young as 55 in select states onl y . Higher minimum age requi rements may appl y . Vi s i t www. reversefunding. com/equi ty-el i te for detai l s . *RMF’s Veterans Discount Program is subject to change or cancellation at any time and without notice. This program offering can only be redeemed with Reverse Mortgage Funding LLC. Consumer must pay for the appraisal upfront. This program offering is valid for an appraisal credit of up to $450.00 off allowable closing costs. In some instances, the credit may not be valid or may be less due to loan program restrictions. Program offering may not be valid with low cost loan programs or other lender credits. Home Equity Conversion Mortgage offers apply to refinances only. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. This offer is available with RMF’s Equity Elite product. Loans currently in process do not qualify. The credit will be applied at the closing of your mortgage loan with Reverse Mortgage Funding LLC, and it will be shown on the HUD-1 Settlement Statement. Loans must be closed and funded with Reverse Mortgage Funding LLC as the lender. All loans are subject to approval. Program, rates, terms and conditions apply and are subject to change without notice. Program offering is not transferable. No cash value. This program offering is not redeemable for cash or cash equivalents. Not valid with any other discount or promotional offers. Some restrictions apply. Void where prohibited, taxed or restricted by law. Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees, if applicable, may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property. ©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. 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.