An Outside the Box Reverse Mortgage

An “Outside the Box”

Reverse Mortgage

• Presented by:

– CEO, David Peskin

– VP Product Development, Joe

Giordano

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An “Outside the Box”

Reverse Mortgage

The Simple60 was developed

through intensive product

and market research

Senior Consumer

Focus Groups

Lender Focus Groups

Lead Data

Client Focus

1. One borrower too young and not

willing to come off title

2. Closing cost sensitive, not willing

to pay the hefty costs associated

with a HECM

3. Consumer does not plan on living

in the home for too much longer

therefore a HECM does not make

economic sense

And Now

Product

Serves All

Three Groups

An Exciting New

Alternative

• Product is a “simple” alternative to

some of the solutions on the market

• Reverse Mortgage for borrowers

starting at age 60

• Exceptionally low closing costs - in

fact, one flat, low, fee

• Counseling arranged by LLS

• LLS self-insures the product

Most Lead Sources generate

up to

5%

of clients under

the age of 62 — every day!

What percentage would your business increase if

you could talk to a Senior about a reverse mortgage…

What percentage of your

business is lost

How does it work?

People 60 to 70

will be able to

borrow 20%

of the value of

their home.

People above 70

will be able

to borrow 25%

of the value

The Settlement Charge is

based on a flat fee for the

principal loan limit allowed.

Principal Loan Limits

Closing Costs

From $50,000 to 

$99,999

$4,450

From $100,00 to 

$149,999

$5,550

$150,000 and over

$6,250

*The broker

cannot charge

processing fees or

misc fees

One Flat Closing

Cost Fee

• Appraisal paid upfront by consumer

but will be deducted at closing

• Consumer will have to pay State Tax

and Recording fees

• Title insurance is 3x max loan amount

• Flat fee incorporates all fees

• Choose your own HUD Approved

appraisal companies

•Cost Comparison

•Age 75

Break Even Analysis

55,613.00 61,237.00 67,386.00 74,109.00 81,458.00 89,493.00 98,277.00 107,880.00 118,379.00 66,945.00 71,251.00 75,806.00 80,625.00 85,723.00 91,115.00 96,820.00 102,855.00 109,240.00

•Home Value

•$500K

•Loan Amount

•$50K

Simple 60 CMT 100 CMT 125 LIBOR 75 Costs 5,613.00 16,945.00 16,945.00 16,945.00 Avail Limit 125,000.00 256,148.00 246,654.00 244,727.00 Year 0 1 2 3 4 5 6 7 8

Amount Owed

Break

even after

6 years

66,945.00 71,428.00 76,128.00 81,224.00 86,571.00 92,241.00 98,255.00 104,632.00 -66,945.00 71,648.00 76,651.00 81,972.00 87,634.00 93,656.00 100,063.00 106,879.00

-Break

even after

7 years

Break Even Analysis

54,513.00 60,035.00 66,072.00 72,671.00 79,887.00 87,775.00 96,399.00 105,827.00 116,134.00 62,245.00 66,278.00 70,546.00 75,060.00 79,835.00 84,887.00 90,232.00

-•Home Value

•$250K

•Loan Amount

•$50K

Simple 60 CMT 100 CMT 125 LIBOR 75 Costs 4,513.00 12,434.00 12,434.00 12,434.00 Avail Limit 62,500.00 174,826.00 169,701.00 167,014.00 Year 0 1 2 3 4 5 6 7 8

Amount Owed

Break

even after

5 years

62,245.00 66,443.00 70,895.00 75,617.00 80,625.00 85,935.00 91,567.00 97,540.00 -62,245.00 66,647.00 71,331.00 76,314.00 81,614.00 87,253.00 93,251.00

-Break

even after

6 years

Break Even Analysis

80,613.00 88,569.00 97,267.00 106,776.00 117,172.00 128,538.00 140,963.00 91,945.00 97,698.00 104,299.00 111,043.00 118,194.00 125,778.00 133,822.00

•Home Value

•$500K

•Loan Amount

•$75K

Simple 60 CMT 100 CMT 125 LIBOR 75 Costs 5,613.00 16,945.00 16,945.00 16,945.00 Avail Limit 125,000.00 256,148.00 246,654.00 244,727.00 Year 0 1 2 3 4 5 6 7 8

Amount Owed

91,945.00 97,941.00 104,299.00 111,043.00 118,194.00 125,778.00 133,822.00 -91,945.00 98,243.00 104,942.00 112,069.00 119,650.00 127,715.00 136,294.00

-Break

even after

4 years

Available States

Phase 1

CA, AZ, FL, NJ

Phase 2

IL, MI, OR, PA,

WA,MD, CT, VA

Phase 3

SC, DC, NY, OH,TX,

NC, CO

Counseling

• Since this is a proprietary product it

will be set up by Relationship

Managers

• LLS will pay for and arrange the

counseling

• A loan may be submitted prior to

counseling EXCEPT:

– In the state of CA only, counseling

must be completed PRIOR to ordering

any services

&

Bridge To Future HECM Business!

•Younger borrower…

•Cost conscious borrowers…

•Product as bridge loan…

Marketing

Materials

Don’t Forget

• Simple 60 is:

– For all wholesale partners, not just lead

clients

– Designed to fill a critical void

– Based on tremendous market research

– Not a replacement for your HECM

• Applications will be accepted on

11/5

• Training sessions on 10/30,

10/31 and 11/1 for loan officers

• This webinar will be available

for playback on the LLS

Dashboard today.

Next Steps

• Remember you don’t have to be

a LLS Lead Client to use our

unique wholesale products

• Contact Your Account Manager

or call 1.888.775.3631 for

Also available:

• Don’t Forget to take the:

• Use our unique Jumbo, with the

highest advance rates:

Company

Available Benefit

$284,870.71

$305,166.43

$333,200.00

•67 year old

•Miami, FL