Reverse Insider | July 2022

Reverse Insider | July 2022

YEAR 2 | VOL 6 | JULY 2022

REVERSE MORTGAGE FUNDING NEWSLETTER

SOCIAL WELLNESS MONTH Inside, find tips on how to ensure we are building satisfying relationships and gaining financial freedom

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Supporting Human Connections in All We Do

July is Social Wellness Month. And whether you’re a social butterfly or a wallflower, you can’t ignore the benefits of bonding with others and building satisfying relationships — especially as we age. That’s why Reverse Mortgage Funding, LLC (RMF) is proud of our partnership with Meals on Wheels America, supporting our nation’s most vulnerable aging population.

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“Our local loan specialists are active community leaders and volunteers who strive to maintain long-term relationships,” says RMF President David Peskin. “We’re proud to stand with Meals on Wheels America to provide seniors across the country with nutritious meals, human connections and most of all, a sense of community.” Laurie Hegarty, an RMF loan processing officer from Newburgh, New York, shares her family’s experience using Meals on Wheels’ critical services: “My father-in-law (who will be 90 in November) has lived with us for many years. We currently have nurses come to the home for several hours a day to help us with caring for him. Meals on Wheels has been a blessing. Working in the mortgage industry keeps us quite busy all day, and having this service provided to us is just wonderful. Poppie enjoys the meals and loves to chat with the volunteers when they stop by to deliver them. I love this program and I’m so happy that RMF is part of it.” At RMF, we’re dedicated to helping older Americans live a comfortable retirement. That’s why partnering with an organization like Meals on Wheels America is a natural fit. Read on to learn more about how we work to change the lives of homeowners and homebuyers age 55 and over with our reverse mortgage products.

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Truth Be Told: Get the Facts About the Reverse Mortgage Loan

Truthfulness is the foundation of living with integrity. That’s why on July 7th, we observe Tell the Truth Day — a day is set aside to encourage people to tell the truth, even if it’s challenging or uncomfortable. So at Reverse Mortgage Funding (RMF), we’re setting the record straight on the reverse mortgage loan — and why it may or may not be the smartest financial tool for your retirement. If you’re concerned about having the funds to sustain a comfortable retirement, a reverse mortgage can provide an additional income source for financial peace of mind. This type of loan works by allowing eligible older homeowners to leverage their home equity rather than spending down investible assets that could be earning interest. Overall, a reverse mortgage (also referred to as a Home Equity Conversion Mortgage, or HECM) can be a smart means to supplement retirement income, as long as you have the facts. 1. The bank doesn’t own your home. When you take out a reverse mortgage, the bank has a lien on your home just as it would with a traditional mortgage. That means it has first claim on the proceeds from a sale. As the borrower, you still own the home. 2. The home must remain your principal residence. Moving out of the home (as your primary residence) can trigger a reverse mortgage loan to become due. So if you plan to relocate to

live with family or move to a long-term care facility, this type of loan may not be right for you. 3. You have more control over your money, compared to traditional mortgage products. A HECM line of credit offers benefits of a traditional Home Equity Line of Credit (HELOC) but gives you more flexibility in how you receive those funds. Plus, the unused portion of a HECM line of credit grows over time † — independent of home value. And as long as you continue to meet your loan obligations, the lender cannot reduce or cancel your line of credit. 4. There are obligations that must be met to keep your loan in good standing. Homeowners are responsible for basic upkeep and repairs, and paying homeowners insurance, taxes, and other costs of homeownership. Failing to handle these expenses can result in immediate obligation to repay the reverse mortgage or risk foreclosure. 5. You may make monthly payments — or not. There are no monthly principal and interest payments for reverse mortgages — as long as you meet the obligations of the loan. You can pay back as much or as little as you’d like each month, or nothing at all. 6. Just like any other mortgage product, there are fees. In addition to an origination fee and closing costs, there’s also an upfront Mortgage Insurance Premium (MIP). These upfront costs can be financed by the loan to minimize the out- of-pocket expense. There’s also a fee for reverse

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mortgage counseling by an independent, third- party counselor, to make sure you understand all aspects of the loan. During the life of the loan, interest and the annual MIP accrue on the outstanding loan balance, which is due when the loan is repaid. 7. If you move, pass away or sell the home, principal and interest payments are required. When certain life events deem the loan due and payable, you are responsible to make principal and interest payments. 8. There are strong protections in place for borrowers. As mentioned above, each potential borrower must meet with an independent, FHA- approved counselor to objectively ensure that they understand the reverse mortgage process and the individual terms of their loan. When your property is sold — if the sale of the home doesn’t cover the balance of the loan — the borrower or heirs are not responsible for the difference of the loan. A reverse mortgage is a non-recourse loan, so you won’t owe more than the home is worth when the loan is repaid. 9. You can still leave your home to your family. Your heirs will still inherit your home, but they will 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. Once it’s repaid, they retain any remaining equity. 10. Eligible Spouses aren’t kicked to the curb. Your co-borrowing spouse may remain in the home as their primary residence, and access reverse mortgage funds, as long as they continue to meet the loan obligations. On a HECM, a qualified non- borrowing spouse who meets certain conditions can continue living in the home; however, they will not have access to any additional reverse mortgage funds since they are not a borrower.

Knowledge is power Reach out to the loan specialists at RMF to learn more during an in-person consultation. We look forward to sharing more reverse mortgage truths! Call me today to schedule a free, local appointment. † If part of your loan is held in a line of credit upon which you 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 your loan.

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“In proportion as he simplifies his life, the laws of the universe will appear less complex, and solitude will not be solitude, nor poverty poverty, nor weakness weakness.” Henry David Thoreau On July 12th, we observe National Simplicity Day, honoring the life and philosophies of poet Henry David Thoreau who advocated for a simpler way of life. What a great time to step back and focus on eliminating unnecessary burdens and complexity in our increasingly busy lives! For retirees or those approaching retirement, you may be thinking about how to make the most of the years ahead without financial stress weighing you down. A reverse mortgage loan can be a valuable tool for financial peace of mind. You’ve likely heard about this type of loan. But how much do you really know, especially when it comes If you’re an older homeowner or homebuyer, a reverse mortgage loan can help you enjoy greater financial flexibility and security for the years ahead. Here’s an overview of what it is — and what it isn’t — so you and your loved ones have the information you need to make an informed financial decision. Reverse mortgages are designed specifically to help older homeowners and buyers. Due to inflation, market fluctuations and the rising cost of living, many retirees are concerned about outliving their retirement savings. But with a reverse mortgage, you can leverage home equity as monthly payments, a lump sum or a line of credit that’s available if and when you need it. † The bank doesn’t own your home. With a reverse mortgage, you will continue to live in and own your home and retain the title. To remain in good standing, you must continue to meet your loan obligations, including keeping current with property taxes, insurance, and maintenance to separating fact from fiction? Setting the record straight Breaking Down the Reverse Mortgage: Are You Sitting on the Secret to Retirement Success?

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It involves a meticulous process. Rest assured, reverse mortgage loans are not entered into lightly. Lenders are required to perform a thorough financial assessment on each application, ensuring borrowers have the means to meet the ongoing loan obligations. And as part of the loan process, you also must meet with an independent, FHA-approved counselor to objectively ensure that you understand the reverse mortgage process, what it entails and the individual terms of your loan. Just like any other mortgage loan, there are associated fees. FHA-insured mortgage loans (both traditional and reverse) require an upfront Mortgage Insurance Premium to ensure that you never owe more than your home is worth if the balance of the loan exceeds your home’s value. Other reverse mortgage fees include: • The cost of reverse mortgage counseling by an independent, third-party counselor • Interest that accrues during the life of the loan, due when the loan is repaid • A monthly service fee that some lenders may charge Keep in mind, all upfront costs can be financed by the loan, which minimizes out-of-pocket expenses. You won’t owe more than the home’s value when the loan is repaid. A reverse mortgage is a non-recourse loan. That means that a borrower, as well as his or her estate, won’t owe the lender more than the home’s value when the loan is repaid. It won’t interfere with your Social Security. While regular Social Security or Medicare are generally not affected, needs-based benefits, such as Supplemental Security Income or Medicaid, may be impacted. Consult with a financial professional or government benefits specialist about your individual situation. Visit www.ssa.gov.

Your spouse is generally protected under the loan, even after you pass away. A co-borrowing spouse is entitled to remain in the home as their primary residence, enjoying all the benefits of the reverse mortgage, as long as they continue to meet the loan obligations. A non-borrowing spouse on a HECM loan may also continue to reside in the home as their principal residence, as long as they meet certain eligibility requirements and keep up the terms of the loan. They don’t need to take title or legal right of the property to ensure this protection. Remember, if you’re considering a reverse mortgage loan, it’s important to involve your family and trusted advisors in the decision- making process. Explore your options for simplifying retirement Dispelling the myths about reverse mortgages can help you and your loved ones make educated decisions about your financial future. To learn more, call me to set up a meeting at your convenience virtually, at your home, or at another location of your choice. † 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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option.

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In May, we honor our moms for Mother’s Day. And in June, we wish dads a happy Father’s Day. But did you know that July 24th is National Parents Day? Where would we be without our parents? Chances are, they put in a lot of hard work and sacrifice to raise a family. Now that they’re growing older, many parents look to their adult children to help ensure they have everything they need to age safely and securely. If you find yourself sandwiched between caring for your aging parents and your own children, you’re not alone. Approximately 23% of U.S. adults are feeling the emotional and financial squeeze. For National Parents Day, give your parents the peace of mind to age in place comfortably. If they are homeowners with sizeable equity, there may be a financial option your family hasn’t considered — a reverse mortgage loan from Reverse Mortgage Funding LLC (RMF). As your local specialist, I can help you and your loved ones determine if it’s the right option for their retirement. Easing the financial burden If your parents need to increase their cash flow to cover existing monthly debt payments, medical costs, home modifications or daily expenses, a reverse mortgage loan can be a strategic tool for accessing funds when they’re needed most. Designed specifically with the needs of retirees in mind, it allows older homeowners to tap into the equity they’ve built up over the years. They can leverage the funds as monthly payments, a lump sum or a line of credit that’s available on standby † . They’ll also continue to live in and own the home with their names on the title. And one major advantage is its flexible repayment feature, which allows borrowers to make any size monthly mortgage payment, or nothing at all. As with any mortgage, there are loan obligations that must be met, including keeping current with property taxes, insurance and maintenance. But a reverse mortgage can even help make it easier to pay for these expenses. Starting the conversation As you initiate what can be an emotional discussion, it’s important for you and your parents to make an honest assessment of everyone’s needs, finances, boundaries and goals. Consider the following questions: • Do your parents have enough saved for a comfortable, safe and secure retirement? • Do they wish to continue living in the family home as they age? • Could they make safety modifications to remain in their current home as long as possible? • Does anyone have a condition that will require ongoing care in the near future? The Gift of Financial Peace of Mind for Aging Parents

• If needed, how will they finance long-term care? • Are you able to save for your own retirement? • Can you afford to help out without impacting your own finances?

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With a reverse mortgage loan, your loved ones can use the funds to live their best life now and in the future while easing the financial burden on you. Check out our exclusive publication “Should My Loved Ones Get a Reverse Mortgage? What Every Family Should Know” to learn more. † 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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option.

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On July fourth, our country comes together to observe its national freedom, commemorating the signing of the Declaration of Independence. There are fireworks, parades and barbecues to celebrate our independence on what’s considered America’s birthday. But in the land of the free, many Americans are struggling to achieve financial freedom, especially during retirement. More than 60% of Baby Boomers are more afraid of running out of money than they are of dying. Financial independence in retirement requires careful planning, budgeting and saving. And luckily, there are several strategies that may help you establish financial security for the years ahead: Continue to work. The longer you work, the more you can save and the less retirement years you’ll have to fund. In January 2022, the maximum 401(k) contribution amount rose to $20,500 annually. If you’re not already, take advantage of this easy option to boost your retirement savings. And once you’ve reached an eligible age, you can make an additional catch-up contribution of $6,500 for a grand total of $27,000 a year. The downside? Not everyone is willing or able to work into their golden years, so this might not be the right option for you. Collect Social Security. At age 62, you become eligible to collect Social Security. The average Social Security benefit for the 64 million Social Security recipients in the U.S. is currently $1,657 per month. But unless you wait until you reach full retirement age, you’ll only get a portion of it. For example, if you start collecting at 62, and your full retirement age is 66, you may miss out on 25% of your maximum benefit every month for as long as you live — and that adds up! Buy an annuity. An annuity is a long-term investment that’s converted into income for life. It can be a huge retirement advantage. On the other hand, annuities are considered taxable income, which falls under a higher tax rate than many other retirement investments. Plus, they often come with extra fees — like the large commission that salespeople earn from selling them. Take out a reverse mortgage loan. Are you sitting on a goldmine? Homeowners age 62 and older collectively own $9.2 trillion in home equity wealth. A reverse mortgage allows you to leverage your equity as an additional income source while you continue to live in your home and retain ownership. You may access the money in the form of monthly payments, a lump sum or a line of credit that’s available on standby † . Best of all, reverse mortgages don’t require monthly payments. You can pay as little or as much as you want — when you want. Just be sure to stay current with loan obligations, including property taxes, insurance and home maintenance. Declare Your Own Financial Independence Day with a Reverse Mortgage Celebrate the Land of the Free by Achieving Your Own Financial Freedom!

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Helping veterans retire more freely Independence Day is also a time we remember the men and women who fought for our country and our freedom. As a token of our appreciation, Reverse Mortgage Funding LLC (RMF) established our Veteran Discount Program. This program is available to U.S. military veterans and their spouses (including the spouses of deceased veterans), offering a credit of up to $450 toward appraisal costs ‡ on their reverse mortgage. We recognize their sacrifices and want to help more of our country’s brave veterans achieve financial freedom and security in retirement. Let financial freedom ring Don’t let money worries hold you back from living the retirement lifestyle you’ve worked so hard to achieve. I look forward to speaking with you to discuss the financial benefits of a reverse mortgage. Give me a call today, and we’ll schedule a local, in-person appointment at your convenience. † 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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option. ‡ Veterans Discount Program is subject to change or cancelation 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.

Still think a reverse mortgage is a loan of last resort for struggling senior homeowners? Think again. Over the years, the reverse mortgage has undergone a significant makeover. Since its introduction in 1961, this financial tool has developed into an important retirement planning option that has benefited more than a million households. Today, it’s often used as part of a smart, proactive retirement strategy that leverages your most sizeable asset: your home. The reverse mortgage has redefined the financial possibilities for older homeowners. To win the retirement game, retirees need to do more than protect their savings. They need to play smarter. So why not utilize a reverse mortgage as part of an offensive strategy to fund a comfortable retirement? A good offense is the best defense A reverse mortgage allows you to leverage your home equity as a lump sum, monthly payments or a line of credit that’s available on standby † . Best of all, you continue to own your home, retaining the title, as you comfortably age in place. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance. According to Wade Pfau, PhD, CFA, RICP, a professor at the American College for Financial Services and founder of RetirementResearcher.com, a reverse mortgage may be worth considering for homeowners who are concerned about outliving their savings, but want to remain in their home for as long as possible. Dr. Pfau explains, “It’s a way to free up money to pay for long-term care and other living expenses.” What’s Your Retirement Game Plan? Create a Strong Offense with a Reverse Mortgage. REVERSE INSIDER

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Reverse mortgages offer borrowers certain protections: • Applicants are required to meet with an FHA-approved counselor. This third party can objectively ensure that you understand the loan process, what it entails and the individual terms of the loan. • Borrowers will not owe more than the home is worth when the loan is repaid. This non- recourse feature is a huge benefit to you (or your heirs) when the loan becomes due and payable. Federally-insured reverse mortgages are commonly known has Home Equity Conversion Mortgages (HECMs). A HECM offers increased protection in that there are limitations on the funds borrowers can take during the first 12 months. This is to help your home equity last longer. Don’t wait for the game clock to run out Whether or not you feel like it’s a good time to take advantage of your home equity, you can gain valuable peace of mind knowing it’s available when you need it. Is it better to get one now to use later in the game? Here are some questions to ask yourself: Is it a seller’s market? Take a look at the housing inventory in your neighborhood. If available homes are scarce, your home may appraise for a higher amount, thus a larger loan. What are interest rates? While interest rates are currently on the higher end, interest rates change frequently based on the economy. Once you see it inching lower, it may be a good time to lock it in. Teamwork makes the dream work Adds Dr. Pfau, “It’s important to shop around and find a high-quality lender that offers favorable rates.” † 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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option.

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An estimated five million older Americans are abused every year, contributing to a 300% higher risk of death. Financial abuse is one of the most common forms, costing older American $2.6 to $36.5 billion annually, as well as their dignity and security. In June, we observed Elder Abuse Awareness Month, conducting a webinar for financial professionals to better support and protect and their older clients. Howard Tischler and Liz Loewy, co-founders of EverSafe, shared their expertise on how this alarming form of abuse has evolved and what older Americans can do to protect themselves and their loved ones. Keeping a watchful eye Elder financial abuse is happening all around you — and it’s not always a stranger who’s after your savings, according to Tischler and Loewy. So who are the exploiters? • Relatives. Don’t assume that just because someone is a family member, they have your best interests at heart. • New companions. It’s easy for strangers to step in and forge a friendship for their own financial gain. • Caregivers. You trust caregivers, hiring them to care for yourself or your loved ones. But trust your instincts if something seems amiss. • Financial professionals. The people who handle your financial matters could be the ones mishandling them, including fiduciaries and powers of attorney. What to look for in the post-pandemic world Elder financial abuse can take on many forms to gain control of an older adult’s property or funds. Fraudsters have viewed the pandemic as an opportunity for exploitation. Scams carried out online and by phone have grown increasingly sophisticated. According to Tischler, new scandalous texting tactics include: • Contact tracing – Under the guise of scaring individuals with possible COVID-19 exposure, Stoked by the Pandemic, It’s a New Age of Elder Financial Abuse

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scammers ask for personal information to complete the tracing. • Vaccine availability – This scam requests the victim’s personal information in order to schedule their next vaccine appointment. • Fake results – Victims are texted fake medical test results and are fooled into clicking on a fraudulent link to learn more. As Loewy reminds us, “The pandemic isn’t over, especially not for individuals and people with health issues. People are still scared and isolated.” And this can be the perfect storm for even more phishing scams. Aging with your money and dignity intact Think you or your loved ones are at risk? Here are some easy steps you can take to mitigate financial elder financial abuse: • Educate. Be aware of the scams you and your family members are vulnerable to and where to turn for help. • Practice caution. Be wary of calls, texts and emails that request personal and account information. Report suspicious activities to the Federal Trade Commission. • Utilize technology. Thanks to modern technology, you can help yourself or your loved ones bank from home, setting up automated deposits of Social Security or dividend checks, sending withdrawal alerts and reminders when payments are due. • Become a guardian or appoint one. A trusted fiduciary can make all financial decisions when you or your loved one are unable to do so. Consult with an attorney for the legalities of this role. • Protect your financial assets. If you’re an older homeowner and looking to establish more financial security, a reverse mortgage loan can offer a valuable safety net that you can count on during retirement. This type of loan allows you to leverage your home equity as you continue to live in and own your home. You can access the funds as a lump-sum payment, a monthly payment or a line of credit † — so the money is available when and how you need it. To learn more, call me today, I’d welcome the opportunity to answer your questions about using this valuable tool for financial security and peace of mind. † 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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option.

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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. † 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. ‡ As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and mainte- nance. 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. ©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 practic- es, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms sub- ject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval.