I can’t tell you how many times I have received a follow-up note or message with this very familiar theme, “thanks for giving the borrower the opportunity to remain in their home and be financially independent.”

 

While the role of the Underwriter is a very important component in the successful realization of the Borrower(s) loan request, perhaps it is more appropriate to look back at the cause and effect of how the Borrower(s) request was truly addressed and the fact that more than likely it took a “village” to get the transaction complete as opposed to the efforts of one.

 

As we approach the holiday season, I would like all of you to consider a slightly different focus to your newsletters, mailers, campaigns and messages which are being utilized to provide information to seniors. The gathering of family and friends is your greatest opportunity to effectively communicate your message. Why not empower the villagers by suggesting a “senior assessment” in your marketing strategy as the basis of a village exercise to best assist the senior in being able to remain in their home.

 

Be careful though, while urging family and friends to consider the following questions and facts with the aid of your ability to bring borrower and loan product together, be mindful of the independence aspect of today’s senior.

 

Without suggesting the right preface, setting and support, opening the senior assessment conversation may prove to be more difficult than expected for those closest to the senior. The senior may consider the intrusion too personal for open discussion. When attempting to convey the details of a senior assessment, your message should include the need for understanding, compassion and good listening skills as a prerequisite, versus numbers, pressure and the latest marketing techniques.

 

You are available when needed.

The assessment should be a combination of observation, fact and perceived outcomes:

 

Observation: Suggest your villager’s first stop and take a good look before asking questions:

 

• Consider the senior’s physical person – from a health and appearance perspective:

• Are there physical limitations that are present?

• Have there been any recent comments as to physical issues beyond the “aches and pains of growing old”?

• Has there been a change in mobility, “the ability to go, see and do” in the past few months?

• Is there a noticeable increase in lack of attentiveness or prevalent complaint about remembering, forgetting or

“misplacing”?

• Is there a change in the senior’s passion, pursuit or participation in daily social activities?

• Is there a significant change in appearance – hair, clothing, shoes, and personal hygiene?

• What about eating and sleeping – any significant changes?

• What about increased medications, pharmacy bills, and medical tests/visits?

• What about speech, sight, hearing and movement issues?

• Consider the senior’s physical environment – safety and soundness is very important:

• The presence of deferred maintenance.

• The floor plan, accessibility or property profile will or may present issues.

• The living environment – temperature, light and security.

• Furniture and fixture issues

• Age of appliances, furnace, hot water heater

• Are there signs of water damage, paint peeling/chipping, cracks, seepage,

• Are there odors, fumes, pet damage, infestation?

• Have you noticed “stuff” building up – beyond sentimentality or collectibles

• Is there evidence of hoarding?

• Water pressure, flickering lights, noises of any type

• Automobile, transportation and mobility issues

 

Facts: Perhaps the most difficult villager activity in the assessment.

Consider the numbers and paper details as part of the assessment:

• Are real estate taxes, special assessments, municipal fees and association dues current?

• What are current mortgages, liens, and property related debts, and are they current?

• Are insurance(s) premiums paid?

• What is the value of the property and remaining equity?

• Are credit cards used and how – who has the cards?

• Are purchases made over the Internet?

• Is there a “nest egg” and how is it managed?

• Are required filings current – tax returns, pension, social security, employment related?

• Where or with whom are important papers kept?

• Is there a current POA for healthcare and financial matters?

• Is there a lawyer, accountant, tax advisor, banker, insurance agent, physician, neighbor, and trusted advisor phone and contact list?

• Is mail opened and attended to?

• Is there an increase in mail, deliveries, and telephone messages from unknown parties?

• Life sustaining measures, health care coverages, long-term healthcare coverage.

• Existence of a will and burial requests.

 

Perceived Outcomes: Thought provoking questions, often avoided but necessary to remaining in the home and independence.

 

• Consider the following to complete the assessment:

• Will the present property support the senior’s desire to remain in the home?

• Is there assistance available to the senior to remain in the home?

• How will increased costs of living, taxes, food, utilities and healthcare be managed?

• Are there reserves for the unexpected?

• Who is the most trusted advisor?

• What is a “rough” plan of action for property issues and maintenance?

• What is a “rough” plan of action for illness, inability to live alone?

• Is there an alternative investment strategy?

• Are the villagers able to commit and support the senior’s future needs?

 

Other “thankful” items and thoughts:

• You will be thankful at the 11th hour to have this e-mail address as you do your first GFE….. http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf

• If you didn’t give thanks this past Sunday for the House and Senate passing an extension of the $625,500 loan limit for reverse mortgages through December 31, 2010, it is not too late.

• “Thanks for the Memories” will be the song of choice on December 7, 2009 when thinking about the “FHA Spot Condo” affidavit. HUD announced the implementation of FHA’s new policy guidance for condo project approval and condo unit financing will take effect on this date.

• Thank You to NRMLA Staff for planning an excellent conference despite these economic times – the topics and networking will prove invaluable as we head into 2010.

• “No thanks” is not an acceptable response to the latest invitation to register with the federal National Loan Officer Registry – a requirement of the SAFE Act, you should immediately work on completing this action.

• A very big thanks goes out to the many Loan Originators and Processors who diligently work to provide the senior with their greatest efforts to provide professional service.

• A thankful plug to Jerry Mayer at HUD for his FHA updates. "How do I sign up my entire staff for FHA email updates?" You can send in one email address or thousands. Email your list to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

• I guess thanks are in order to HUD for reducing the appraisal expiration date to 4 months after the 1st of the year.

• Many thankful thoughts from Underwriters to HUD for not combining mortgagee letters on Co-Ops, Manufactured Homes and Condo’s at the same time.

• And lastly, give thanks that 2009 is almost over!