www.ReverseMorg.com Available

Financial Freedom and IndyMac have been in the news a lot lately. But not the kind of Financial Freedom I'm talking about. I realized back in 2004 that the baby-boomers were going to turn 62 in 2008 and that because they will live longer than previous generations, would need more than social security to get through their retirement years. I read an article on a little known mortgage called a reverse mortgage and immediately realized the enormous potential of the industry.

As a founding shareholder of a company called Pay By Touch, which had raised $300 million and planned on an IPO, I thought that I was set and would need something to do as I am the sort who has to keep busy. Unfortunately Pay By Touch fell victim to the small cap market and much to everybody's surprise and chagrin, was taken over by the Hedge Funds that funded them leaving shareholders out in the cold.

Fortunately, as fate would have it, I have since become involved with another high growth industry, specifically, a company that is going to bring PIN Debit to online retailers, and will not be entering the reverse mortgage industry as planned. So...

If you see (as I do) that Reverse Mortgages will continue to grow as more and more baby-boomers hit 62, then you know the market has strong growth projections for the next 15 plus years. Many will have to use the equity in their homes to compliment their social security income. It's an industry that is solid and will continue to be so.

If you are serious about entering this fast growing and exciting industry, or if you have entered it and want to grow your business quickly, then you'll want/need an easy brand name to grow your business. As a consultant specializing in branding and marketing strategy since 1996, I happen to know that I've got one of the best domain names for this industry available.

The following article was originally posted on the ReverseMortgageDaily.com site under the title: "Are You the Master Of Your Own Domain?

"Have you ever typed in: http://www.reversemortgage.com

Guess where it goes….keep reading if you’re too lazy to click on the link. (Editor's Note: Think FinancialFreedom!) Whomever was responsible for acquiring that domain was a genius.

What’s the value of that domain? A ton of money…..sadly, not enough to re-capitalize IndyMac…

When it comes to branding, a company and/or an individual should spend considerable amounts of time and money developing their brand but a new way to think about branding and marketing relates to domain names. As for those who are branding themselves, marketing and self promotion are critical components to developing a digital persona and brand"...

I agree..do you? Think about it.
What could be easier to remember than: http://www.reversemorg.com/?

It's a Dot.Com, which is really the only domain you would want. It's shorter than reversemortgage.com and easier to spell, since most people anunciate it "morg"age any way instead of "mort"gage.

This domain was appraised at $27,000 in 2005 and $68,000 in 2007. I have not had it appraised yet in 2008.

The first $30k gets it. This offer is open for the rest of the summer (until September 21st) at which time I will renew it for 5 more years and have it reappraised.

I have had this domain name since April 2004 and reserved it until April 2009. It is a simple process to assign the name to your organization. Until it sells, I will simply continue to renew it as it appreciates in value. Almost nobody had heard of a Reverse Mortgage when I reserved the name. Almost nobody hasn't 4 years later.

For others, If you'd simply like to take over this blog, you may contact me for that information.

Become an authority in this fast growing industry. Visit RevereMortgageDaily.com (boy that's along name to type...oops spelling mistake too!) and look at the advertisements from LenderLead Solutions etc.... That's monthly income folks!

This blog is getting over 200 hits per day. (Note: Average Blog gets about 3 per week)

The reason I have decided to sell, is because as I said, I have focused my attention on bringing PINDebit to the Internet.

The PINDebit Blog is taking up too much of my time to continue working on a quality ReverseMorg Blog.

The payments industry is my home, and like the baby boomers who will drive the reversemorg industry, I prefer to stay in it.

Inquiries should be directed to: johnbfrank@gmail.com

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Golden Gateway Financial Links Depreciating Home Values to Limited Financing Options for Seniors

SOURCE: Golden Gateway Financial
Jun 16, 2008 08:06 ET

Retirees in Some Markets Have Lost More Than 20 Percent of Funds Available to Them Within the Last Year; Analysis Shows Eroding Home Values Outweigh Many of the Age-Related Advantages Reverse Mortgage Borrowers Traditionally Expect

OAKLAND, CA--(Marketwire - June 16, 2008) - Golden Gateway Financial, the Web's most comprehensive financial resource for seniors and retirees, today released details of an internal study that shows the window is closing for many seniors in need of additional funds. The findings reveal that one of the hidden repercussions of the current housing market is the inability of senior citizens to recapture equity from long-held properties.

"Our research shows that for the reverse mortgage industry, the adage 'time is on my side' does not necessarily hold true in a down market," said Eric Bachman, founder and CEO of Golden Gateway Financial. "Those eligible seniors who think they may need money in the next few years are actually losing ground, and they should consider locking in a higher home value now before values continue to erode."

According to Golden Gateway Financial, consumers eligible for a reverse mortgage, but who have not yet secured one, have forfeited a national average of nearly 14 percent of the cash available to them over the past year. The study found that there is nearly a one-to-one correlation between the percentage drop in a home's value and the percentage decrease in up-front cash available to its owner through a reverse mortgage.

Furthermore, despite the fact that many consumers in the past have been able to secure more money by waiting a year or two to obtain a reverse mortgage, findings demonstrate that declining home values around the country have effectively canceled out the age-related advantages that some consumers had hoped to gain by securing a reverse mortgage later in life.

For example, a 72-year old individual that owned a home valued at $200,000 in January of 2007, but that has lost 14 percent of its value in twelve months, has watched his or her available up-front cash through a reverse mortgage also dwindle by 14 percent from $125,969 to $108,804 in that same period. By waiting a year to conceivably secure more cash through a reverse mortgage, this individual actually lost more than $17,000 due to declining home value.

"Our first piece of advice to seniors and their advisors is always to responsibly evaluate the merits of a reverse mortgage," continued Bachman. "For those individuals for whom a reverse mortgage is a good fit, it just makes good financial sense to evaluate and make that decision now."

The Golden Gateway Financial study examined reverse mortgage lending criteria alongside the most recent S&P/Case-Shiller analysis of depreciating home values(1) over the last twelve months to highlight the dynamics of how eroding home values, reverse mortgage lending limits, and age intersect to impact equity available to senior citizens. The study applied reverse mortgage underwriting criteria in concert with the S&P/Case-Shiller home price index across a number of ages and geographies.

The example table below highlights Golden Gateway Financial findings in representative markets by both age and calendar year. The table assumes a home valued at $200,000 in January of 2007, and the cash available is computed using the most common type of reverse mortgage, the FHA insured Home Equity Conversion Mortgage (HECM). A more comprehensive table reflecting all of the markets referenced in the S&P/Case-Shiller Home Price Index can be found by visiting http://www.goldengateway.com/press/press_release_06_16_08.php and clicking on the table.

            One Year    Age       2007       2008     Reduction
          Change in  (2007-    Upfront    Upfront      in
          Home Price  2008)     Cash       Cash       Cash
          Index(1)            Available  Available  Available
          ---------  ------  ----------  ---------  ---------
US National     -14.1%  72-73    $125,945   $108,780   ($17,165)
Index          -14.1%  78-79    $136,835   $118,233   ($18,602)
          ---------  ------ -----------  ---------  ---------
Atlanta          -6.5%  72-73    $125,945   $119,040    ($6,905)
               -6.5%  78-79    $136,835   $129,284    ($7,551)
          ---------  ------ -----------  ---------  ---------
Los Angeles     -21.7%  72-73    $125,945    $98,520   ($27,425)
              -21.7%  78-79    $136,835   $107,183   ($29,652)
          ---------  ------ -----------  ---------  ---------
Miami           -24.6%  72-73    $125,945    $94,605   ($31,340)
              -24.6%  78-79    $136,835   $102,966   ($33,869)
          ---------  ------ -----------  ---------  ---------
New York         -7.4%  72-73    $125,945   $117,825    ($8,120)
               -7.4%  78-79    $136,835   $127,975    ($8,860)
          ---------  ------ -----------  ---------  ---------
Phoenix         -23.0%  72-73    $125,945    $96,765   ($29,180)
              -23.0%  78-79    $136,835   $105,293   ($31,542)
          ---------  ------ -----------  ---------  ---------

For more information about this study or to access Golden Gateway Financial's industry leading suite of online retirement assessment tools and resources, please visit http://www.goldengateway.com.

About Golden Gateway Financial

Golden Gateway Financial, located in Oakland, California and at http://www.goldengateway.com, is a comprehensive resource for senior citizens, baby boomers and soon-to-be retirees to assess their financial health at retirement. Through a unique set of online tools and clear and unbiased communication, the company helps individuals address The Great American Retirement Dilemma in order to better assess how secure their nest egg really is and then make intelligent choices to eliminate money concerns and fully enjoy what should be the best years of their lives. The company also operates the industry's premiere reverse mortgage service with a proprietary reverse mortgage calculator and a team of trained counselors to help seniors better understand the product, evaluate whether it is right for them, and then research the perfect lending partner. Golden Gateway Financial is an advocate for seniors, helping them find the answers and resources necessary to spend their retirement financially secure and with complete peace of mind.

(1) National Trend of Home Price Declines Continued into the First Quarter of 2008 According to S&P/Case-Shiller Home Price Indices (Press Release), Standard & Poor’s, May 27, 2008

Interesting Article on ReverseMorg's

Image via Wikipedia

A great number of mortgage bankers are already convinced on the commercial viability of reverse mortgages. The challenge, however, is convincing the general public and the investor community of the product’s value.

"If you look at the demographic trends and you look at what's on the horizon for this industry, it is only a good picture to look at," said Justin Birch, senior mortgage banking analyst for Ginnie Mae. Birch was among the panelists for the session "Reverse Mortgages – Outlook for Industry" at the recent Mortgage Bankers Association Secondary Marketing Conference, and he noted the government-sponsored enterprise was fully behind the product and its investment potential.

"Our goal is to create a standardized product," he said of Ginnie Mae's home equity conversion mortgage (HECM) securities. "We wanted to do three things: we wanted to improve the liquidity for the product, we wanted to expand the seniors' borrowing options, and we wanted to lower the costs for seniors."

Birch acknowledged that Ginnie Mae's timing was somewhat off when it was ready to unveil its HECM security. "We came out with our first securitization at the worst possible time: November 2007," he said.

Indeed, Birch's fellow panelists agreed that timing has been a problem in expanding the appeal of the reverse mortgage.

"This product has been around for about two decades, yet it really is new in many ways," said Lorna M. Neill, an associate in the Washington, D.C., office of the law firm Kirkpatrick & Lockhart Preston Gates Ellis LLP. "This market has tremendous potential, and yet the market is in sort of a vulnerable state."

Neill added the schematics of reverse mortgage sector also contribute to a sense of confusion. "A lot of big players are coming in, and the laws allowing these products can be complicated," she said. "A lot of people can get in over their heads very quickly, and the result can be bad press - I think we’ve seen that."

Jeff Lewis, chairman of the Atlanta-based Generation Mortgage Co., concurs on the last point.

"The product is absolutely tremendous," he said. "But if you read the popular press, you’re not going to get that story. There was a quote that came out of the New York Times: 'Even the best reverse mortgages are expensive. The amount of equity that can be paid out is limited, and the risk of interest rate fluctuation is reducing what heirs can inherit and is sometimes greater than disclosed.' I think the only word in this paragraph that I can agree with is 'the.' This is an important quote, because it captures a lot of the misconceptions that people have about the product."

Lewis noted that because the product is aimed exclusively at borrowers who are 62 and older, it automatically generates a higher level of intense inspection.

"There are a lot of burdens in dealing with a customer like this," he commented, alluding to the reverse mortgage borrower. "The customer has a tremendous number of advocates looking out for them: the AARP, the local newspaper, the Congress, the lawyers. Everyone wants to be able to raise their hand and say ‘I'm looking out for the seniors.'"

Neill believed the current level of attention will not abate. "This product is already getting heightened scrutiny from regulators and legislators, and I don’t see that changing over time," she said. "In the current market, I would say there is sensitivity to predatory lending. Fair or not, the reverse mortgage is viewed by many as fertile ground for predatory practices."

Michelle Canter, an attorney with the Atlanta law firm Franzen & Salzano, commented that the raised concerns over predatory lending will not bode well for reverse mortgages.

"The risk is that this product will get lumped into predatory lending and mortgage fraud, that it's preying on elderly borrowers," she said. "It just plays out lovely in the media. For those borrowers for whom this is the perfect product and for lenders who are prepared to make it, this can have a negative influence."

Canter warned that mortgage bankers need to keep an eye on pending mortgage fraud legislation, because this could inadvertently damage the reverse mortgages. "Reverse mortgages have unique characteristics, and these big sweeping prohibitions could have an adverse impact," she said.

Neill also observes that because reverse mortgages are substantially different in concept and execution than traditional loan products, it is easy for borrowers to experience problems or misunderstandings - which, in turn, could create problems for originators.

"It is a complex product for a vulnerable population," she said. "Add those things together and you get a lot of things that can go wrong, even if you follow the rules. The heirs can be disgruntled, not just the borrowers. But if you dot your i's and cross your t's, from a legal and regulatory compliance standpoint, you can head off egregious settlements."

Complicating matters is selling reverse mortgages into the secondary market. Even at this late date, many investors are still confused on how they work and when to expect payoff.

"How do you evaluate reverse mortgages?" asked Waqas Shaikh, a director with Standards & Poor's. "There is really no term on the loan. It's not like the loan expires after 20 or 30 years."

Birch acknowledged that Ginnie Mae has heard these comments already and is working to address them. "The good news is the folks who've been doing the actuarial side of this business for a long time in the life insurance companies have modeled out how long a single female or male should live, or how long a married couple should live," he reported. "That side of the equation is sort of easy. We've been working with FHA to get data out to the industry to track and monitor the performance of these loans, [offering information on] how quickly do they payoff due to a borrower moving or selling a home."

From the investor standpoint, there is also the challenge of handling jumbo reverse mortgages. Shaikh pointed out that unlike Fannie Mae and Freddie Mac, Ginnie Mae does not have the capacity to securitize jumbo loans. "It's really attractive for borrowers who have higher-priced loans and would like to borrow amounts that are greater than the HECM loan limits," he said.

Birch admitted that the reverse mortgage market is very much a work in progress. "In terms of potential and opportunities, we have a long way to go," he said. "It translates on the product side and the secondary market side about how do we continue to let this market mature."

Forbes on ReverseMorg's

James Garner in 1987The distinguished voice on the radio advertisement pitching reverse mortgages has a familiar ring: Yes, that's James Garner, the venerable television and film actor.

Garner, in ads for a lender, touts reverse mortgages as an option for homeowners age 62 or older who are seeking an influx of cash to better manage their ever-mounting expenses - or just live a bit better in retirement. But the increasing popularity of reverse mortgages has revealed some pitfalls that can be avoided by doing what thousands of U.S. foreclosure victims who entered into bad adjustable rate loans should have done three and four years ago: Ask questions, do the proper homework, and don't get swayed by smooth-talking salesmen.

The basics of the reverse mortgage are simple enough to grasp (though the name itself sounds like some kind of wrestling move). It allows an eligible homeowner to borrow from the home's equity in a lump sum, line of credit or regular payments, while not having to pay a monthly mortgage. The homeowner retains title and must pay insurance and property taxes while living there. The loan and fees are due once the homeowner listed on the deed dies or vacates the home for 12 straight months. The home is usually sold, and the proceeds from the sale are used to pay off the loan - plus interest and those pesky fees.

The typical customer owns the home outright or has a relatively low mortgage balance. Many who take reverse mortgages and the monthly payouts are on fixed incomes from Social Security or pensions and want financial help as they work to meet the rising costs of taxes, medicine, utilities and food. Others may take part of a lump sum for home improvements, for example. And the homeowner never owes more than the home's value. About 90 percent of U.S. reverse mortgages are Home Equity Conversion Mortgages, or HECMs. They are insured by the Federal Housing Administration.

Nationally, the reverse mortgage bandwagon is filling up. In fiscal year 2007, the FHA endorsed 107,558 reverse mortgages, an increase of 40 percent over fiscal 2006 and more than 12 times the amount recorded in fiscal year 2001, according to the National Reverse Mortgage Lenders Association. FHA-endorsed reverse mortgages are up 3 percent in this current fiscal year - which runs from October to September.

At Bankers First Mortgage Inc. offices throughout Pennsylvania, roughly 25 to 30 people have been coming in per month asking about reverse mortgages, said George Hanzimanolis, president of Bankers First Mortgage and the National Association of Mortgage Brokers. Hanzimanolis says reverse mortgages are valuable because they allow seniors to keep their homes in their advancing age. He points out that married seniors should both be listed on the deed, so that one spouse can continue with the reverse mortgage if the other passes away.

That tip is one of many offered by observers and experts. David Certner is legislative police director for the AARP. He and others note that reverse mortgages should be something of a last resort, partly because of high fees associated with the loans. Those interested in adding to their monthly budget may want to seek alternatives, like other types of loans, or even selling the home before settling on a reverse mortgage. (The AARP does not endorse specific loan products).

Reverse mortgages also mean the home will probably be sold at the end of the loan, mainly because the homeowner, or an heir if a death is involved, will be looking for cash to pay off the mortgage. Thus, seniors who want to leave their homestead to their children may not want to enter in a reverse mortgage.

As can be expected, these reverse mortgages are like blood in the water for piranhas looking to take advantage of seniors. "Pressure tactics" is what Certner calls them.

In a meeting of the Senate's Special Committee on Aging in December, Sen. Herb Kohl, D-Wis., warned that marketers often "gloss over" the risks of reverse mortgages. Worse, salesmen persuade seniors to take the cash from a reverse mortgage and use it to fund another investment, such as an annuity, which can tie up retirement savings beyond one's lifetime, Kohl said.

That practice allows unscrupulous salesmen to double up on their fees. The Financial Industry Regulatory Authority issued an investor alert in March, saying fees and costs associated with reverse mortgages can be up to 4 to 8 percent of the total loan amount.

Even the FBI is taking a look at reverse mortgages. In April, the Associated Press reported that the FBI said it has seen an uptick in reverse mortgage cases as part of its mortgage fraud inquiries. For those considering a reverse mortgage, the message is straightforward: Consider all options, look at consequences of the decision beyond the next few years, ask enough questions to satisfy concerns. Homeowners across the U.S. have built equity in their homes with an eye on retirement. They should not let silver-tongued salesmen coax them into a loan they don't need and give up what's precious to them - their financial security in retirement.

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Lender Lead Solutions Takes Lead on CofE

 - Reverse mortgage leader adopts strict guidelines on ethical advertising,
 marketing and sales practice and implements training programs to promote
                             best practices -

   MELVILLE, N.Y., June 3 /PRNewswire/ -- Lender Lead Solutions, the
wholesale division of World Alliance Financial Corp., an industry leader in
reverse mortgages, announced today that it has begun adopting the National
Reverse Mortgage Lender Association's (NRMLA) formal Code of Ethics and
Ethics Advisory Opinion 2008-1 and 2008-2 for its members. Together these
policies elevate and promote the needs of seniors above all else in
discussions about reverse mortgages and clearly define standards for
ethical advertising, marketing and interacting with seniors. Effective
today, the company is requiring that all new members sign an agreement to
abide by these policies before beginning a business relationship. All
existing members will be required to sign off on an addendum by July 3,
2008.

   (Photo: http://www.newscom.com/cgi-bin/prnh/20080603/NYTU038LOGO )

   Lender Lead Solutions has made serving seniors with professionalism and
integrity its trademark. The company will now require that each member
commit to the Code of Ethics and Ethics Advisory Opinions brought forth by
NRMLA. Included in the terms of the Code of Ethics agreement are guidelines
and requirements that members only sell products that meet and are in
accordance with the best interests of the borrower. The Code of Ethics also
ensures prospective borrowers fully understand every aspect and detail of
the reverse mortgage they are purchasing.

   Additionally, all members will be required to adhere to the guidelines
listed in the NRMLA Ethics Advisory Opinion 2008-1 and 2008-2, which
addresses ethical advertising and marketing of reverse mortgage products.

   "Lender Lead Solutions has always encouraged and counseled members to
treat customers with the utmost respect and professionalism and we have
taken steps to formalize the process," said David Peskin, chief executive
officer of Lender Lead Solutions. "We believe that as leaders in the
industry, it is our responsibility to serve and protect the customer and
the integrity of the reverse mortgage product. We are committed to
implementing NRMLA's Code of Ethics and its Advisory Opinions on
advertising and marketing into all aspects of our business."

   To assist its members in understanding the nuances of these policies,
the company also plans to offer training programs through its newly
expanded Lender Lead Solutions University (LLSU) program. Several new
courses have been recently established to guarantee all internal staff
understands the importance of the new policies and best practice

NRMLA was established in 1997 to promote professionalism in the reverse
mortgage industry. NRMLA requires each member of their organization to
follow a set of values that ensure their members are fair to consumers and
treat them with respect and dignity. NRMLA members must also take
appropriate measures to protect confidential information of all clients.
They are required to gain and possess knowledge, skill and experience
concerning reverse mortgages. Adopting NRMLA's guidelines on the standards
for ethical advertising, marketing and interacting with seniors ensures
Lender Lead Solutions and its members will always be viewed as upstanding
and professional in the industry.

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HUD Approves Counseling Fees in Reverse Mortgages

Last week the U.S. Department of Housing and Urban Development published Mortgagee Letter 2008-12 to permit counseling agencies to charge seniors a fee for counseling services. HUD said the counseling fee should be reasonable and customary for the service provided and not exceed $125. The payment of the fee can be paid using one of the three ways described below:

1. The HECM counseling client and related parties can pay counseling fees directly to the agency; or
2. Lenders may pay HUD-approved counseling agencies for counseling services, through a lump sum or on a case by case basis. The lender payment may be made directly to the counseling agency or disbursed at closing by the settlement agent, as provided in paragraph (3) below. The lender payment may be mad e directly to the counseling agency or disbursed at closing by the settlement agent. Counseling agencies must disclose to their clients any funding or relationships with lenders. Lenders that pay agencies for counseling services may seek reimbursement from clients who proceed with the HECM and become HECM borrowers.
3. The cost of HECM counseling can be paid out of a HECM borrower’s loan proceeds. Upon agreement of both the lender and the borrower, the closing agent can assume responsibility for remitting payment to the counseling agency that performed the service.

Lenders are reminded that they may not steer, direct, recommend, or otherwise encourage a client to seek the services of any one particular counseling agency.
To read a copy of the ML 2008-12, click the link below.

Mortgagee Letter 2008-12

32,000 New Potential Clients Per Month

Seniors looking to take cash from the value of their home without actually selling it or moving out are turning to reverse mortgages in growing numbers.

A reverse mortgage is essentially a loan on a portion of all of a home’s equity.
The latest pitch by practitioners is that with falling property values, seniors can get money out of their home without selling it at a loss, and at much lower interest rates than home equity loans.

Some shady dealers have given the practice a bad name, and the AARP cautions seniors to proceed slowly and to solicit more than one opinion.
But happy users of reverse mortgages say it helped them plan a retirement, pay bills and keep up insurance premiums.

“It gives them the ability to draw money out of an asset tax-free versus an IRA, which has tax consequences,” said Neal Melton, vice president of the reverse mortgage division of Golden Equity Mortgage Corp.

Golden Equity has added two employees to cover reverse mortgages exclusively in the past year. Previously, the company had 20 workers who covered all its divisions, including residential and commercial. To qualify, homeowners must be 62 and have a majority of equity in their home.

"Reverse mortgages are on the rise,” said Melton, whose company does not disclose revenue figures. “People are trying to tap into the equity of their home to increase monthly income and liquidity, live a better quality of life and have the ability to maintain home and title.”

In 2004, there were 38,000 federally insured reverse mortgages. That number grew to 107,000 last year.

“That number is going up all the time,” Melton said.
Baby boomers are reaching the qualifying age of 62 at a rate of 32,000 people per month. Many are lacking the income to cover expenses, he says.

“Now with property declining 15 to 25 percent locally, seniors are looking for reverse mortgages to stay in their homes and keep their homes,” Melton said. “The option of selling and moving isn’t what it was three years ago.”The payout can be a lump sum or structured in monthly installments.

Homeowners may also pay the loan back, but they don’t have to as long as they stay in their home. If the homeowner dies, the spouse cannot be evicted either. The heirs inherit the rest of the unmortgaged equity.

I had a client in Carlsbad who had a $700,000 property. She still owed $160,000 and had a $1,200 mortgage payment. She earned $1,800 a month,” he said. They put together a reverse of $285,000, which paid off her house note and structured a monthly payment of $1,100 on the remaining equity. “Now she has $2,300 of additional cash flow,” he said.