HOUSING SCENE The elderly need to beware of lenders--and relatives;recent conviction of a Long Island woman who stole the home of a 93-yr http://ping.fm/2hib3

In this tough economy, more seniors, whose retirement funds have been sorely depleted by the downturn, are turning to the reverse mortgage,http://ping.fm/ce2PT

Caregivers helped with Reverse Mortgages by giving relief: 1/3 of US population are caregivers, average age is 48 yr old female http://ping.fm/2QBA5

New York Times interactive graphic which calculates unemployment rates by age. 6.3 % for those 45+ http://www.nytimes.com/interactive/2009/11/06/business/economy/unemployment-lines.html

New York Times reports that there are more American's 65+ in the job market. Nearly 1/2 million 65+ workers who want to work are looking http://ping.fm/DOzqf

Peter Bell, president of National Reverse Mortgage Assoc. testifies before Subcommittee on Housing & Comunity Opportunity. http://ping.fm/Xj0pd

This is an excellent consumer information program on reverse mortgages, AARP's Inside E Street, Kiplinger's Mag, Barney Frank, just the facthttp://ping.fm/fiKFU

Planning for Your Elder Years: IF we were to ask an older person what his or her most important concerns for aging are, we would get http://ping.fm/ceZL7

Appropriations committess for the House & the Senate propose keeping Reverse Mortgage Limits at $625,500 through end of 2010. http://ping.fm/5N52D

aconrard@gmail.com says: "Grandparents.com Runs Feature on Reverse Mortgages"


Reverse Mortgage Counseling for Seniors - FAQ and Information

Reverse mortgage sounds appealing - pull equity out of your house, use the money (tax-free!) for whatever you want. Get sound counseling for seniors with our FAQ and information guide to reverse mortgage.

To view it, use the link below:
http://ping.fm/3cobT

HUD is considering developing a smaller reverse mortgage. Lower proceeds ad COSTS! Better for folks who needs smaller amounts. read more: http://ping.fm/nc7TD

If you are considering a Reverse Mortgage and your home value is over $417k pls read
http://ping.fm/aa3Zw

*Please note, the sender's email address has not been verified.



CNN Money recently did a piece on how a reverse mortgage works. Unfortunately it was not accurate. To get the facts, ask an expert.




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Sept. Consumer Reports uses "National Enquirer" type reporting on reverse mortgages. A clear failure in service to their loyal consumers http://ping.fm/LD5Xf

For the first time in a generation, millions of older people face shrinking Social Security checks next year says the Star Tribune.
http://ping.fm/QLJdO

Reverse mortgages growing in popularity (corrected post)



By Lisa Chamoff Staff Writer Updated: 08/08/2009 11:23:26 PM EDT

More than a year ago, Dee Lewis was struggling to afford her escalating
property taxes, plus pay the mortgage on the small Glenville farmhouse where
she's lived since 1982. Lewis, now 64, had been considering a reverse
mortgage, which allows senior citizens to tap into the equity of their
homes, providing them access to money without the burden of monthly
payments. The loan is repaid when the borrower sells the house or dies.

http://ping.fm/KRpUy
st.com

Reverse mortgages growing in popularity



By Lisa Chamoff
Staff Writer

Updated: 08/08/2009 11:23:26 PM EDT

More than a year ago, Dee Lewis was struggling to afford her escalating
property taxes, plus pay the mortgage on the small Glenville farmhouse where
she's lived since 1982.

Lewis, now 64, had been considering a reverse mortgage, which allows senior
citizens to tap into the equity of their homes, providing them access to
money without the burden of monthly payments. The loan is repaid when the
borrower sells the house or dies.

Millions of Californians are facing medical debt or go without healthcare because of high prices. I your one of them check out this consumer website that (among other things) will show you how to negotiate your hospital bills down like the the health insurance companies do. Very Cool Site! www.hospitalbillhelp.org

The New York Times has a blog called "The New Old Age - Caring & Coping". While I am not thrilled with the name as I think it will put off more mature readers, it does have some excellent subject matter, resources and articles. I would add it to my reading list. http://ping.fm/g5eBF

Starting October 1, 2009 all condominium projects approved by FHA prior to September 2009 will have to be recertified. I can only think that any condominium homeower seeking FHA financing will experience significant delays in attaining their loan as the entire project will need to go through the process. Here is a summary of the process: http://ping.fm/7w1op

Bruce Norris is a Southern California Real Estate Investor that has an excellent reputation. He has some interesting comments on today's real esate market and how to expidite our recovery. http://ping.fm/uYaXj

New Mexico Homeowner Attains Reverse Mortgage Without "Pushy Sales Talks" http://ping.fm/lvl9O

New Mexico Homeowner Attains Reverse Mortgage Without "Pushy Sales Talks"
http://ping.fm/lvl9O

REVERSE MORTGAGE PROCEEDS MAY BE GOING DOWN - WHY REVERSE MORTGAGES ARE AN EXPENSIVE LOAN
http://ping.fm/hCYo0

CONDO OWNER’S CONTEMPLATING A REVERSE MORTGAGE MAY WANT TO ACT SOONER TO AVOID LONG DELAYS
http://ping.fm/9BXti

Reverse Mortgage Daily News

Reverse Mortgage Daily News
Even though the reverse mortgage industry has been around since the 1980's it is still immature and continues to change.

Government Program Pays Family Members for Taking Care of Mom and Dad

Looking for a way to help Mom and Dad pay for Home care or assisted living? Perhaps you are their caregiver. Wouldn't it be nice to receive some extra income to help you provide their care? There is financial help available for senior veterans and their spouses.

For veterans who served during a time of war or for their surviving spouses, the Veterans Aid & Attendance Pension will pay additional income to cover long term care costs. The great news about this program is that VA will allow veterans' households to include the annual cost of paying any person such as family members, friends or hired help for care when calculating the Pension benefit.

Pension can provide an additional monthly income of up to $1,949 a month for a couple, $1,644 a month for a single veteran or $1,056 a month for a single surviving spouse of a veteran. This money can be used to help pay the cost of home care, adult day services, assisted living or nursing home services.

In order to reduce income to meet the income test for pension, a rating for "aid and attendance" or "housebound" is crucial. Not only does the rating significantly increase the benefit amount but without a rating, room and board costs for assisted living are not deductible for purposes of reducing income. Only the much smaller assisted living medical costs are deductible.

For home care, non-medical costs are only deductible if the in-home attendant is licensed for healthcare in that state or if there is a rating. Since the non-medical costs for home care represent the bulk of all costs for long-term care at home, without a rating, those households with a non-licensed attendant would not qualify for the benefit. Examples of medical or nursing services at home would be help with activities of daily living such as dressing, bathing, toileting, ambulating, feeding, diapering and so on. Other services might include medication reminders or supervision necessary to provide a protective environment for the care recipient -- in the case of dementia or Alzheimer's.

A rating for aid and attendance is automatic if someone is a patient in a nursing home or that person is blind or so nearly blind as to need assistance.

It is our understanding that a non-licensed in-home attendant could be just about anyone receiving pay for providing services. This might be members of the family, friends, or someone hired to live in the home. Unfortunately, a spouse cannot be included in this list for reimbursable caregivers.

For a disabled person who has been rated, a family member will be considered an in-home attendant, but that family member has to be paid for services duly rendered. There is potential for fraud here where a family member may move into the home and ostensibly receive payment as a caregiver but not actually provide the level of care paid for. Documentation for this care must be provided to VA, and it is reasonable for VA to question whether the services being purchased from a family member living in the household are legitimate. Such arrangements should be extensively documented and completely arm's-length.

The care arrangements and payment for home care must be made prior to application and there must be evidence that this care is needed on an ongoing and regular basis. We recommend a formal care contract and monthly invoice billing for services. Money must exchange hands and there must be evidence of this. All of this documentation must be provided as proof to VA when making application for the pension benefit. Costs for these services must be unreimbursed; meaning these costs are not paid by insurance, by contributions from the family or from other sources. Even though the family member being paid for services cannot reimburse the veteran household directly,the family may pay the bills for the veteran household. This indirect form of support is allowed.

There is an application form to be submitted, along with a doctor's report form, documentation of medical expenses and payment of home care services or facility fees. Other documentation includes original discharge papers, marriage records if applicable and a death certificate where applicable. An inventory of all sources of household income and all household cash equivalent assets is also required. Providing complete documentation with the initial application will expedite a rating and approval for pension payment.

For those who want to do it themselves, the National Care Planning Council provides help in their book “How to Apply for the Veterans Aid & Attendance Pension Benefit.” http://www.longtermcarelink.net/a16veterans_books.htm

This book provides, in detail, a description of application for the Pension Benefit and what information and documentation other than the application form should be submitted. All necessary forms are included in the book such as the application form and forms for medical expenses and other costs.

ElderLawAnswers.com review of this book states; “This is the book to get if you want an in-depth understanding of how veterans' benefits work, what options are available and how to apply. http://www.elderlawanswers.com/resources/article.asp?id=6209&section=5&state =

One purchaser of the “How to Apply” book emailed his successful experience.
“I purchased " How to Apply for the Veterans Aid & Attendance Benefit" earlier this year, and I wanted to let you know how much of a blessing this book was. I followed the instructions exactly as stated in the book. I used the forms provided (Forms 1-4). I made copies of everything. I submitted my dad's application on March 31, 2009. I received a response TODAY, May 2, 2009, that approves my father's application, and he will be receiving a substantial amount in benefits monthly, beginning April 1st. In addition, the VA sent additional forms for me to submit stating that my dad may be eligible to receive additional benefits for medical expenses incurred from March 31, 2008 to March 31, 2009. In essence, I had to submit no additional documentation, just the documentation you suggested in your book. I was approved in one month's time. NO DELAYS!!! Thank you for your wonderful book! I needed no consultants, no attorneys, no one and nothing but the advice contained within your book. I highly recommend this book to EVERYONE who is seeking to apply for this valuable benefit.”
To read more about the book and purchase your copy of the “How to Apply for the Veterans Aid & Attendance Pension Benefit” go to http://www.longtermcarelink.net/a16veterans_books.htm

Veterans Benefits Consultant
A veterans benefits consultant is an individual who helps veterans understand long term care benefits available through VA. This can include information on veterans health care, state veterans homes and veterans disability income benefits. Consultants place particular emphasis on Pension and Death Pension because these benefits are typically more useful for the elderly needing long term care. Pension is also known as "the aid and attendance benefit." Being a consultant is not a formal title but is merely a description of this person's function.

Consultants provide information about the aid and attendance benefit including what it is, who can qualify and what information and documentation are necessary in order to file a claim. A consultant does not participate in any way in the application process unless that consultant is an accredited attorney representing his or her client in proceedings before VA. Consultants who are accredited veterans service organization representatives can also assist claimants with the filing of a claim. For all other consultations, veteran households seeking help with filing a claim are directed to an appropriate veterans service organization or to a state or county veterans service officer or, where appropriate, they are encouraged to file a claim on their own.

Some consultants also help potential claimants realign their assets and complete important estate planning documents prior to making application.

Veterans Benefits Consultants are private practitioners or in some cases representatives of veterans service organizations and are not connected with the Department of Veterans Affairs. To find a consultant in your area go to http://www.longtermcarelink.net/ref_veterans_consultants.htm

Helping Your Older Parents Stay Happy and Healthy by Robert Stall MD, Geriatrician

If you're fortunate enough to have one or both parents still living, you may have noticed a role reversal taking place in your relationship. Remember the days when Mom shuttled you to the doctor whenever you were sick? Now, it may be you who's driving her to her medical appointments. Perhaps you've become even more involved in managing her healthcare needs – serving as her healthcare proxy, moving her into your home to care for her, or even having to select a nursing home for her to live in.
Whatever the case, it's natural to feel challenged – and, yes, intimidated – in the role you've undertaken. But if you stay positive and proactive, you'll be in a great position to advocate for your parents' optimal care. And, really, what better way is there to say "Thank You" for all they've done for you over the years?
The following six recommendations will help you understand what may be happening to your parents as they age – and what you can do to help.
1. Stay vigilant to sudden changes. Typically, sudden changes arise from sudden problems. Your elderly father who becomes confused one week but was alert and oriented the week before, or becomes unsteady walking and starts falling, is likely experiencing an acute problem – an infection, medication side effect, or perhaps, a heart attack or stroke.
If you pay attention to your parent's baseline health and behavior, you'll be alert to sudden, and subtle, fluctuations. Being attuned to what's “normal” for your parent is critical in advocating for his care. By informing his physician of these changes, you help ensure that he receives a proper diagnosis and timely treatment – especially important in acute conditions.
2. Investigate the source of gradual decline. Several years ago, I met an elderly woman living in a nursing home. Her family, assuming she had dementia, had moved her there after she had gradually stopped speaking.
After performing a brief procedure on her, I asked how she was doing. “I'm OK,” she replied.
A miracle? Not exactly. I'd removed bullet-sized pieces of wax from her ears. She'd stopped speaking because her ears were too plugged to hear.
A host of conditions can cause gradual decline. Before jumping to the conclusion – as many people do – that Alzheimer's disease is the culprit, recognize that your parent may be experiencing an altogether different problem: a vitamin B12 deficiency, an underactive thyroid, Parkinson's disease or depression, to name a few.
When discussing your parent's decline with her physician, make sure the two of you consider all the possibilities. To prepare for the appointment, make notes detailing how her decline has manifested itself – loss of appetite, a failing short-term memory and so forth – and how long you've noticed these changes. That way, you won't leave anything out. To help you, I've created a free checklist that either you or your parent can complete at seniorselfassessment.com – make sure you print or email the “Test Result Details” at the bottom of the page to analyze your responses and give you advice based on your answers.
3. Know thy parent's medicine cabinet. Familiarize yourself with the medications your parent takes: what each one is for and how often he takes them. Make sure you notify each doctor your parent visits of all the medicine he takes, including over-the-counter products. Ask what side effects you might observe from each medication and whether it's potentially dangerous if your parent takes them together. You also want to tell the doctor whether your parent drinks alcohol or caffeinated drinks and whether he smokes, as these substances can affect some medications' efficacy and safety. To recognize which medications might cause the symptoms your parent experiences, check out drugscanmakeyousick.com .
4. Discourage ageist attitudes. Simply put, ageism is prejudice against the elderly. It exists in many forms but can be particularly damaging to an older person's self-esteem when it assumes that all of her woes are age-related. Here are a couple of ways of expressing ageism to an elderly parent:
“What do you expect at your age?” “You're not getting any younger.”
If you're ever tempted to utter something similar, remind yourself that by chalking up everything that ails her to her age, you sell your parent short. If she's depressed, it may have nothing to do with the fact that she's 80 and everything to do with a biological predisposition to depression. And remember that right-knee pain in a 90 year-old can't be just from age if there's no problem with her left knee. (More about Dr. Stall and a more in-depth article on the attitude of society towards medical care for the elderly can be found at http://www.longtermcarelink.net/eldercare/medical_care_issues.htm )
5. Address not just symptoms—but emotions, too. There is disease and then there is “dis-ease” – that is, a lack of ease, security or well-being. “Dis-ease” can manifest itself as myriad emotions in an elderly person: fear, grief, boredom, embarrassment and sadness among them. The fact is, these emotions can be every bit as debilitating as disease.
Take the case of a parent who's incontinent. Too embarrassed to socialize, she cuts herself off from friends. Without companionship, she becomes lonely. Instead of allowing her to become a hermit, discuss with her doctor how to address the incontinence. Together, you can consider different solutions that will ease her embarrassment and reinvigorate her social life.
6. Strive to maximize your parent's quality of life. No matter our age, we all want to enjoy life to the fullest and have the capability to do the things we want to. Improving the enjoyment of life and a patient's functional ability are the cardinal goals of geriatric care. But you don't need a medical diploma on your wall to help your parent achieve either of those goals.
Being there to solve a problem or provide company are tremendously worthwhile services you can provide – no expertise required. Remember, as your parent gets older, his quality of life becomes more important to him than how much longer he lives. And he doesn't necessarily need medications or surgery to ensure that he's living the latter part of his life to the fullest.
If he enjoys books but has difficulty reading regular-sized type, check out sight-saving titles at the library. If he's grieving the loss of his best buddy, introduce him to new acquaintances at the senior center. If he's living in a nursing home, bring your kids there to share a meal with him.
Sometimes, it's the small gestures that have the most profound impact. As the child of an elderly parent, you are uniquely positioned to deliver these life-changing gifts.
Dr. Robert Stall is a geriatrician practicing in Tonawanda, New York and a clinical associate professor at the University of Buffalo's School of Medicine and Biomedical Sciences. He serves as medical director and attending physician at Beechwood Homes in Getzville and Blocher Homes in Williamsville. To learn more about senior care issues, visit his website at stallgeriatrics.com or call 716-213-4345. For information on a new program offering balance assessment and fall prevention tips, call 716-213-0772.

For Care givers

"http://insideeldercare.com"

Reverse Mortgage Counseling Explained

To be eligible for a reverse mortgage you must discuss the loan with a HUD approved counselor. This is a HUD guideline and an industry standard. Upon completion of the session the counselor will issue you a certificate so your originator can start your loan.
The counseling session is provided by a third party counselor. This is an unbiased confidential session. It is designed as a consumer protection mechanism to make sure the borrower understands the loan and gives them an opportunity to ask questions in an environment that is independent from the loan originator and the lender. I tell my borrowers that if I have done my job correctly, it should simply be a review of the loan.
You must initiate contact for a counseling appointment. The counseling session costs $125. You may pay at the time of the counseling or many agencies will allow you to finance the fee into your loan.
Your loan originator will provide you with 10 HUD approved counselors. 5 are referral agencies, 4 counselors must be within your home state and 1 must be within reasonable driving distance to your home. Most borrowers attend their counseling in a phone session, however if you prefer to sit face to face with a counselor, you have that option also.
Your counseling session will last from 45-60 minutes. It will cover your loan comparison sheet, amortization schedule, and good faith estimates. Recently, HUD has also passed guidelines that require counselors to ask you questions about your financial situation. They will ask you questions about your income and budget. Towards the end of your session, your counselor will ask you a minimum of 10 questions about reverse mortgages. If the counselor feels that you do not have an understanding of reverse mortgages they do have the right to withhold the counseling certificate.
You may ask family members such as a son or a daughter to participate in the reverse mortgage counseling with you.
Reverse Mortgage counseling has improved over recent years. Most of the time clients have a good experience with counseling. Given today’s financial environment, I think counseling is a helpful tool to help consumers set them selves up for success by being fully informed in their choices.

My letter to my local Assemblywoman regarding CA Bill AB 329

Find your local assembly person: Click Here

Monday, March 09, 2009

Dear Assemblywoman Harkey,

I respect the proposal of AB 329 and the spirit of its creation.
My name is Angella Conrard. As a reverse mortgage originator of 4 years with a background in healthcare I can speak from experience. I am also the president of the National Aging in Place Council-Orange County and the director of the South Orange County National Care Council Chapter.

This bill if passed into law would be ineffective and only create hardship for seniors.

HUD already prohibits brokers from paying any of the counseling fees or referring to a specific agency. So the section stating that if they do pay the fee, they must notify the borrower of the conflict would be a violation of HUD regulations. We are also required to provide each client with a minimum of 5 counseling agencies. We are required to have our clients sign a disclosure upon the receipt of this list. With new agencies popping up continually this is an unrealistic provision. A more realistic provision is a list of 3 local counseling agencies and 3 referring agencies such as HUD or AARP. The quality of counseling has increased significantly over the last few years. 99% of the time they provide good consumer counseling and it has proven to be an excellent consumer protection mechanism. A provision forbidding lenders to make any kind of donation to counseling agencies would be more effective.
The right of recession period of 30 days is excessive and would provide many problems for seniors. It is unfortunate but most seniors who attain reverse mortgages need them. In many cases you would be creating hardship with a 30 day right of recession period. We are not a society of planners. It is not uncommon for a senior to wait until they are in despite need of money before they attain a reverse mortgage. One third of reverse mortgages are done to pay for medical or home care.

I am currently working with a borrower who is 87 and has Lou Gerrigs disease. She needs her reverse mortgage to be able to continue to pay for her 24 hour caregiver. Lenders will not fund a loan or release proceeds until the right of recession period is completed. The average completion time for a reverse mortgage from application is 30-45 days. She is just beyond 30 days from application date and has run out of money to pay her caregiver. VA and state benefits take over 6 months to attain. My client is just one of many who are doing the best they can to take care of themselves but who would be side swiped by such a law.

Many seniors whom I talk to got caught up in the refinance boom and no longer qualify for a reverse mortgage because they do not have enough equity, however with the new home purchase reverse mortgage product, they can often sell their home and retain enough equity to downsize so they can attain a more manageable home. They can move closer to children so they can have the support they need as they age. This bill would make home purchases with reverse mortgages impossible. No seller is going to consider selling to a buyer with financing of a reverse mortgage with a 30 day recession period. Such a recession period would not only inhibit the growth of the secondary market which eventually will create an environment to offer more products, but more seriously, lenders would not release funds until the right of recession is complete. This delays seniors from being able to pay for caregivers get relief them from burdensome mortgage payments, delays their ability to pay for medication and property taxes. You will hurt seniors with this bill.

In my opinion, a professional designation to qualify loan originators to provide reverse mortgages would be much more affective. The National Reverse Mortgage Lenders Association (NRMLA) has started the process to create such a designation with continuing education requirements. I agree, in that the originators need to be educated and be held to the highest ethics and levels of integrity, but do it by the educational requirements of the messenger not with legislation that will hurt seniors and the quality of their lives. I can assure you, I can recite many stories similar to this as other reverse mortgage originators can. I urge you to work with NRMLA to discuss this bill. It would be catastrophic for many people. NRMLA needs to complete the designation requirements and states need to adopt this as a requirement to originate reverse mortgages. It would require loan officers to take continuing education and ethics classes on a annual basis.

PLEASE DO NOT SUPPORT this bill. Contact Peter Bell, president of NRMLA 202-939-1741. I assure you this industry overall is dedicated to helping and protecting seniors.

Kind regards,
Angella Conrard
Reverse Mortgage Advisor

State Law Makers react to the growth of reverse mortgages proposing new laws- Here is what is happening in CA

CA: Assembly Member Feuer introduced AB 329 Reverse Mortgage Elder Protection Act of 2009.
Click here to read AB 329
1. Prohibits a lender from referring a prospective borrower to a counseling agency, or paying for counseling agency. It also will require lenders to provide borrowers to all agencies in their home state. Requires the lender to disclose any payments or business affiliations between the lender & counseling agency.
a. My Thoughts:
i. The lender should be forbidden from paying, contributing or having a business affiliation with a counseling agency.
ii. HUD presently forbids lenders to pay for counseling.
iii. HUD has regulations requiring lenders to provide a list of 5 counseling agencies to all prospective borrowers. A full list will be over 6 pages long for CA. This is a waste of paper and ineffective.
2. The bill will give borrowers a 30 day right of rescission.
a. My Thoughts:
i. Presently there is a 3 day right of rescission.
ii. A 30 day right of rescission will delay borrowers in attaining their proceeds. This will cause significant hardship for many borrowers who need the reverse mortgage to pay for care, are having trouble paying bills or their mortgage.
iii. The HUD 3rd party counseling is an effective consumer protection that IS WORKING. The counselors are HUD approved and are independent from the lender.
iv. 30 day right of rescission will significantly inhibit the reverse mortgage for home purchase program. What seller will consider a buyer using a reverse mortgage for home purchase if they have the right to change their mind for 30 days?
3. The bill also provides lenders to hold a fiduciary duty to the borrower.
a. My Thoughts:
i. Yes, of course this is a no brainer. The profession needs to establish a nationwide professional designation including CEUs and annual ethics training as many other professions have done. The National Reverse Mortgage Association is in the process of creating a Reverse Mortgage Professional designation. Grievances and Ethics board violation processes are included in the designation being established.

Reverse Mortgage Stimulus Package Language

SEC. 1204. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.
For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

Stimulus Bill compromise added Higher Reverse Mortgage Loan Limits

The Senate passed its version of the economic stimulus bill . The U.S. House & Senate conferenced to work out compromises for the stimulus package.

The committee retained the House language which adjusts the maximum claim limit for Home Equity Conversion Mortgages (HECM). This language adjusts the maximum limit for HECMs to 150% of the Freddie mac limit which would bring it up to $625,500. This increase is only for the balance of 2009.

The House approved the plan yesterday and the Senate was expected to also approve the compromise.

President Obama must sign the bill for it to become law. Once it is signed much must be done to implement law. HUD then issues a "Mortgagee Letter" which is the green light for lenders to offer HECMs at the new limits. Already lenders are scrambling to set up their software in anticipation of the new limits.

HUD has been known to take months to implement changes, example: HECMs for co-ops. Just last fall HUD increased limits to $417,000. Hopefully HUD will work quickly.

Insuring Your Retirement Funds

It might sound strange to be told to insure your retirement funds, but after working hard and diligently saving all that money, wouldn't you want to make sure that the funds will be there for you when you need them?

As you move into retirement, you are also moving towards age-related health problems. Events beyond your control, such as stroke, heart disease and cognitive impairment can change one's way of life.

Many people are under the impression that government programs such as Medicare or Medicaid will cover the costs of long term care. Medicare will cover some skilled nursing for a limited period. Medicaid will only cover long term care costs for impoverished individuals. Health insurance does not cover nursing home or other long term care costs except for short-term rehabilitation.

Out of pocket costs for needed long term care resulting from age-related health problems such as home care, nursing home or assisted living will quickly deplete retirement funds and leave the remaining healthy spouse impoverished.

Long term care insurance is the answer to insure your retirement funds and provide protection so that the money stays intact and at the same time insurance provides a way to pay for elder care services.

In his book “ The Total Money Makeover ,” Dave Ramsey says of long term care insurance, "If you are over sixty, buy long term care insurance to cover in-home care or nursing home care. The average nursing home stay costs $40,000 per year, which will crack and scramble a nest egg in a heartbeat. Dad in the nursing home can use up Mom's $250,000 savings in just a few short years.”

Long term care Insurance to insure your retirement makes sense. You insure your car against damage, your home against fire, and you purchase life insurance, so why not insure what can be the largest and most devastating risk to you and your family? And unlike the other risks you insure against, long term care is the most likely to happen. Long term care insurance will also help you keep your independence and dignity and allow you to make choices about where you want to spend your final years.

Here are some specific reasons for buying long term care insurance:

• If you are married and you have a need for long term care, your spouse will be able to pay for an outside caregiver and receive needed rest and recuperation.

• If your children promise to take care of you, then when the time comes that you need care, insurance will help them do that by paying for aides to help with tasks such as bathing and incontinence.

• If you are single and a need for long term care arises and you have no family who can help you, insurance can pay for and coordinate that care.

• If you have the desire to leave assets behind when you die, insurance will help preserve those assets from the cost of long term care.

"You should also consider buying long term care insurance at a younger age. There is an advantage for doing this. The premium is lower.

For example, a person, currently age 45, buying a typical policy with a spouse, could spend $21,146 in total premiums to age 78.

Suppose this same person chooses to wait to buy the equivalent coverage at age 65.

If that same policy were available in the future, the couple that waits could pay $52,566 in total premiums over their 13 remaining years to age 78. Because they waited, they would pay 2 ½ times more for the same policy.

In addition to the rates going up with age, the health qualifications will be stricter and development of health problems related to aging may even disqualify a person from obtaining a policy." “The 4 Steps of Long Term Care Planning,” National Care Planning Council

There are dozens of long term care insurance companies selling a multitude of different policy options. It can become very confusing. For each policy, there are literally thousands of benefit combinations for home care, assisted living, nursing home care, waiting periods, payment amounts, inflation riders, and the list goes on.

You can take the time to do your own research or find a competent long term care insurance agent.

Here is a checklist of some of the things you need to know before you purchase a policy.


LONG TERM CARE INSURANCE BUYING CHECKLIST
The more "yes" answers you get the better off you are.

1) Is the insurance company rated by A. M. Best (the rating company)
with a rating of at least A, A+ or A++?

2) Is it a large diversified company with deep pockets and selling more
than just long term care insurance?

3) Is the insurance representative an expert in long term care
insurance? (Because of its complexity, almost all LTCi experts only
sell LTCi; they seldom sell anything else.)

4) Does the representative have a degree and/or industry financial
designations?

5) Does the representative own a personal long term care insurance
policy for himself or herself?

6) Is the policy you like tax qualified, and if not, do you understand the
ramifications?

7) Are there at least 6 ADL's (Activities of Daily Living) allowed for
in the benefit certification?

8) Does it allow "standby assistance"?

9) Is it a "pool of money" as opposed to a "stated period"?

10) Is it "integrated" as opposed to "2-pool"? (2-pool is not allowed in
many states.)

11) Do you understand how the elimination period works? (This is
extremely important.)

12) Does it have prohibitive cost containment provisions?

13) Is there any "capping" or other future reduction of automatic benefit
increase riders?

14) Do you understand how the waiver of premium works?

15) Does the assisted living facility benefit pay the same as for nursing
home?

16) Are you buying adequate home care coverage?

17) Does the company have a history of premium rate stability without
periodic increases?

18) Does the policy pay for homemaker services?

19) Does the policy offer an alternative plan of care for services that
don't exist today?

The National Care Planning Council provides a list of long term care insurance specialists and on its website at www.longtermcarelink.net .

Looking for Volunteer Opportunities?

Perhaps you are interested in volunteering for a charity or non-profit, but don't know where to start. The website http://www.volunteermatch.org/ was created to help you find different opportunities to volunteer in your community. You simply go to the website and put in your state, city and/or zip code and it will pull up volunteer opportunities within your community. VolunteerMatch has helped hundreds of thousands of people find rewarding volunteer positions.
Volunteering is fun and rewarding, it makes you feel like you are accomplishing something—that you are giving back to the community in which you live—that you are helping people. Volunteering also gives you the opportunity to meet people, make new friends and get out of the house. You can volunteer a day or two a week or in some cases even a few hours a day. Of course there are some seniors that volunteer every day.
But remember when you volunteer you should be prepared to help in any way the organization needs you. You don't necessarily get to choose the areas in which you will work or the time you can spend. Most seniors who volunteer have found volunteering to be very gratifying.

Top 8 things to ask yourself before you get a Reverse Mortgage?

A reverse mortgage is a special type of mortgage available to borrowers 62 years old and older. Essentially it allows borrowers to turn equity into cash with no payments for the life of the loan. Proceeds are based upon, the value of your home, your age and the programs available.
A reverse mortgage is a complex financial transaction that is a life saving vehicle for some, but not an appropriate tool for everyone. Understanding a reverse mortgage and making sure it aligns with your personal needs and goals are crucial.
1. What do I want a reverse mortgage to do for me? Why do I want a reverse mortgage?
a. Do I want it to eliminate my house payment? Do I have unwanted debt or medical bills I need to pay? Would I benefit from more cash each month?
2. Do I plan to stay in my home for the long term?
a. A reverse mortgage typically should not be used as a short term loan. It’s been said a reverse mortgage should be your last mortgage. Refinancing to attain more money is possible with home appreciation and age, however as we well know economic projection is not always reliable. Making prudent financial decisions can only benefit you.
3. Do I have the physical and emotional resources to remain in my home in safety and comfort?
a. Ask yourself is this the home I want to stay in for the long term? Do I have family, friends and resources to support me? Or do I have the financial resources to outsource anything I might need should I or my spouse need extra help?
4. If I become incapacitated, is my home rehab friendly?
a. Does my home have stairs? Is there a bedroom and bathroom downstairs? Many people are living longer than their knees and hips are lasting. Stairs that are easily scaled when healthy can prove a challenge for someone who has had recent surgery.
5. Does my home need or will it need any repairs of maintenance?
a. Ask your self is my home in good condition? Will I need a new roof, furnace, flooring or plumbing repairs? What about appliances? Many appliances need to be replaced every ten years or so. Will you have the funds for these items? Asking yourself these questions can be helpful in making the decision of how you take your reverse mortgage proceeds.
6. Can I afford to live in my home and pay for taxes and insurance?
a. Part of your agreement with your reverse mortgage lender is that you maintain adequate insurance and pay your property taxes.
7. Do I fully understand how a reverse mortgage works?
a. A reverse mortgage is a negative amortization loan that can be a powerful cash flow tool when used correctly. It does not need to be repaid until all borrowers pass away or your home is sold. A reverse mortgage balance increases over time as your equity decreases. There are many details to a reverse mortgage contract. Two excellent resources for reverse mortgage details is AARP’s publication “Home Made Money” and “The Reverse Mortgage Book for Dummies”.
8. Is it the right time for a reverse mortgage?
a. It is not only important that you know you are in the home you want to live in for a long time if not the rest of your life, but it is also important to know is it the right time for a reverse mortgage? As you age, you qualify for more proceeds, however currently we are in a down cycle in housing values. Is it prudent to take a reverse mortgage now or later? Should you sell, downsize and purchase with a reverse mortgage? Do you eventually want to move closer to family? If so you might consider waiting until you know. Would it be better if you continued to work part time and put retirement off a few years?
Reverse mortgage decisions are not usually made quickly. It may be a month to two year decision before you decide. Only you can make the decision that is right for you. I encourage you to make it an informed one.
If you have a reverse mortgage question, Call Angella 866-949-7030 or log onto www.reverse-your-mortgage.com.