WHAT IS A REVERSE MORTGAGE? HOW DOES IT WORK? REVERSE MORTGAGE PROCESS FREQUENTLY ASKED QUESTIONS WHY ONE REVERSE MORTGAGE MEET A FEW EXPERTS

(1)

(2)

WHAT IS A REVERSE MORTGAGE?

HOW DOES IT WORK?

REVERSE MORTGAGE PROCESS

PROCESS DETAILS

A FAMILY DECISION

LOAN OPTIONS

FREQUENTLY ASKED QUESTIONS

WHY ONE REVERSE MORTGAGE

MEET A FEW EXPERTS

MEET A FEW CLIENTS

FAMILY OF COMPANIES

Copyright

WHAT’S INSIDE

one re ve rse m ortg ag e. com | (800) 355-1993

2

1

3

4

5

6

7

8

9

10

11

12 ...

(3)

WHAT IS A REVERSE MORTGAGE?

2

What is it?

A reverse mortgage, known as a conversion mortgage, lets you convert equity in your home into available funds to use as you wish. It is similar to a traditional mortgage in the following ways:

• You borrow money based on the value of your home.

• You remain the owner of your home. • You can sell the home or pay the loan off with no penalty.

In addition, the conversion mortgage comes with a few unique features:

• You can make payments if you like; however, no monthly mortgage payments are required. Homeowners are still responsible for paying property taxes, homeowners insurance and maintaining the home.

• The amount of funds available to you in the line of credit option may increase over time.

• You also have the ability to receive money as a lump sum or monthly payments. • You have protection against declining home values because it is a

non-recourse loan.*

• It is a government insured loan program. Who is eligible?

The conversion mortgage has many benefits, including its eligibility requirements. You must be a homeowner who is at least 62 years old. You can own your home free and clear or still have an existing mortgage on the home. You must also have enough equity in your home to qualify.

The Ways a Conversion Mortgage is Used Plan for the Future

Conversion mortgages are quickly gaining popularity in the financial world due to their use in retirement and financial planning. With a conversion mortgage, you can: • Supplement your income to allow other assets, investments or benefits more time to increase in value.

• Allow the funds available in your line of credit to increase in value by not using the money right away.

• Take advantage of the line of credit product, which is often recommended by financial advisors.

It allows your available funds to

increase in value annually even if home values decline. This gives you access to even more money later.

It allows you to prepare for unexpected expenses in the future.

Fulfill an Immediate Need

Conversion mortgages can help you enjoy retirement in the home you love - without financial stress. If you have immediate needs, a conversion mortgage can help you:

• Eliminate your monthly mortgage payments** to increase your monthly cash flow.

• Pay healthcare expenses and other debts. • Make home improvements.

• Purchase a home with no monthly mortgage payments.*

• Consolidate debt.

• Do more in your retirement.

2

1 way

way

* Non-recourse means that if the loan is not paid when due, and the sale of the home does not cover the balance, then the lender has no recourse against the borrower or their heirs.

**Homeowners are still responsible for paying property taxes, homeowners insurance and maintaining the home.

(4)

HOW DOES IT WORK?

3

How does a conversion mortgage work?

A conversion mortgage works similar to a traditional mortgage with just a few differences.

• You borrow money based on the value of your home, your age, and current interest rates.

• If you have a current mortgage on your home, your conversion mortgage will pay that loan off.

• You can make a monthly payment on the conversion mortgage if you like, but it is not required. If you decide not to make a monthly mortgage payment, the interest for that month gets added to the balance of the loan.

• The loan comes due when the last borrower vacates the home or passes away. The loan is then repaid by selling the house or the heirs purchasing the home. The loan also comes due if you do not pay your property taxes, insurance, or maintain the property.

How is the government involved? The government does not actually offer the conversion mortgage, but it regulates the products and requirements.

• The Department of Housing and Urban Development (HUD) protects clients by setting standards that lenders must follow. It also requires conversion mortgage counseling to ensure clients know all of their options before getting the loan.

• The Federal Housing Administration (FHA) insures the conversion mortgage. If your home appraises for less than what you owe at the time you leave the home, you only owe the appraised value. The FHA pays the difference.

your best

YEARS

ENJOY

(5)

REVERSE MORTGAGE PROCESS

...

4

Educational Session

This first step will help you decide whether a conversion mortgage is right for you. Your licensed specialist will educate you on the loan and your product options. During this step, you will:

• Call to talk about your situation, get your questions answered and determine if you qualify.

• Attend an educational counseling session, with a HUD-approved counselor. This is required by the Department of Housing and Urban Development (HUD).

Application and Review

During the application and review, you’ll have the opportunity to learn more about the value of your home and your finances. During this time, you will:

• Receive your application and review it with your licensed specialist.

• Undergo a financial review to ensure you can uphold the financial responsibilities of the loan.

• Have your home appraised by an independent FHA-approved appraiser. • Have all of your application documents reviewed and finalized.

Closing and Disbursement

This may be everyone’s favorite step - the closing of your loan and disbursement of your funds! For this step, you will:

• Sign the final documents and close your loan in the comfort of your home. • Receive your funds after the three day rescission period.

(6)

...

PROCESS DETAILS

5

HUD-Approved Counselors

Below are just a few of the HUD-approved national counselors. You can find these and others by visiting hud.gov.

National Foundation for Credit Counseling

|

(866) 698-6322 ClearPoint Financial Solutions

|

(877) 877-1995

National Council on Aging

|

(800) 510-0301 Greenpath

|

(888) 860-4167

Money Management International

|

(877) 908-2227

Neighborhood Reinvestment Corporation

|

(888) 990-4326 Counseling Information

During your counseling session, a HUD-approved, third-party counselor will review your financial situation and ensure you understand how the loan program works. Counseling sessions usually last about an hour and, in most states, can be done over the phone. You must complete counseling before you can apply for a conversion mortgage.

Financial Assessment

An important part of this process is making sure our clients are in the best position to succeed with their new conversion mortgage. A financial assessment was put in place by HUD to make the conversion mortgage safer. We will review your income, assets, and credit history (credit scores are still not a requirement). Based on this review, we may set aside an estimated amount of funds to pay your property taxes and homeowners insurance, similar to an escrow account.

Appraisal Information

An appraisal determines the market value of your home. Since this value (along with your age) determines how much money you qualify for, appraisals are a necessary part of closing your loan. To get an accurate market value, a licensed FHA appraiser in your area will perform an inspection in your home and compare prices of similar homes in your area.

What happens after closing and disbursement?

(7)

LOAN OPTIONS

6

At One Reverse Mortgage, we offer government-insured reverse mortgage (HECM) products and we have three loan options to best help you with your retirement goals. While each option has a variety of different features, find out which option is best for you.

Fixed Refinance

The fixed rate loan pays one lump sum amount and locks the interest rate in place at the time of closing. Many clients use the fixed

option to:

• Pay off debts such as mortgage balances, property liens, and medical bills.

• Make home improvements or make a big purchase.

• Keep the same interest rate from the time the loan closes until the time the loan comes due.

Purchase

This option allows seniors to buy a home without having to make a monthly mortgage payment** as long as they live there. This loan requires a large down payment. The down payment amount is determined by age, purchase price, and current interest rates. Clients use this product to:

• Move closer to friends and family or to warmer climates.

• Downsize or move into a home that better suits their physical needs.

Each loan option is insured by the Federal Housing Administration. Aside from the specific requirements of each loan, our licensed specialists can customize the loan to each client’s individual wants and needs. If you would like to learn more about purchasing a home with a conversion mortgage, call (800) 287-6078 today to request a guide that gives more detail about this product.

Adjustable Refinance

You can receive your funds in a lump sum, monthly payments, a line of credit, or a combination of these three.

Line of Credit

The financial flexibility gained with the line of credit is one of the many reasons some financial advisors recommend this type of conversion mortgage. The line of credit can be utilized in the following ways:

• You can take a lump sum amount at closing or receive monthly disbursements so can you delay the use of other

retirement assets and benefits* - giving them more time to grow.

• You can also start the line of credit and not take any funds. By doing this, your available money will increase in value over time, which would give you even more available funds later. The available funds can even exceed the value of your home!

• The line of credit gives you the flexibility of a traditional HELOC (Home Equity Line of Credit) without the monthly mortgage payment requirement.**

Home Value Line of Credit VA LU E in thousand s 1,300 1,100 900 700 500 300 100 AGE of borrower 62 66 70 74 78 82 86 90 94 98

*Please consult your financial advisor.

**Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home.

***Hypothetical. Example based on an assumed downturn in the value of the market during the term of the loan. Unused funds available in HECM Adjustable Line of Credit could continue to grow based on the initial principal limit. Results may vary.

(8)

A FAMILY DECISION

7

Including Loved Ones

Whether you are interested in getting a conversion mortgage for yourself or you are looking for information for a loved one, choosing to get a conversion mortgage is a big decision. We understand if you want to include others in your decision. At One Reverse Mortgage, we encourage loved ones to be involved. Our licensed specialists can include others in phone conversations with you. Everyone is able to learn about the conversion mortgage products, ask questions, and understand the process.

We even offer a few tips for involving others:

Prepare for the conversation by first educating yourself on the qualifications, process, and how a conversion mortgage can benefit you.

Share educational materials like this guide and DVD. Or, have them visit onereversemortgage.com

Be open to speak about your finances and how you can use a conversion mortgage to help you with your finances.

Invite your family members to participate in a phone call with your One Reverse Mortgage specialist.

Be prepared to address any concerns by knowing the facts versus the myths.

Addressing a Common Concern Many heirs are concerned with what will happen when the loan comes due. If the loan comes due because you pass away, heirs have a number of options. If you pass away and your heirs wish to keep the home, they can pay the lesser of the loan balance or 95% of the appraised value of the home.

If they wish to sell the home, the proceeds of the sale will first pay off the conversion mortgage. Any money left over is theirs to keep. It may also be good to let them know that if they want nothing to do with the home after you pass away, they simply sign the deed over to the lender and will not be responsible for repayment.

(9)

FREQUENTLY ASKED QUESTIONS

8

* Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home. Q1 | Can I get a conversion

mortgage if I already have a mortgage?

A | You can get a conversion mortgage if you already have a mortgage. In fact, many people get a conversion mortgage to pay off their existing mortgage! While you are still responsible for paying property taxes, homeowners insurance, and home maintenance costs, you are not required to make a monthly mortgage payment with a conversion mortgage.* Q2 | Will my children be left

paying for the loan if I pass away?

A | Your heirs have a few options. They can sell the home to pay off the loan and keep any remaining money from the sale or they can keep the home. If they decide to keep the home, they can pay the lesser of the loan balance or 95% of the appraised value of the home.

Q6 | Why are you checking my

credit history?

A | A requirement for

someone getting a conversion mortgage is to go through a financial assessment. This process helps us determine if you are willing and able to manage your debt and meet your financial obligations such as paying property taxes, homeowners insurance, and home maintenance costs. The purpose of this requirement is to set you up to succeed with your conversion mortgage. Q7 | What if my home sells

for less than what I owe on the loan?

A | A conversion mortgage is a non-recourse loan. That means you will not owe more than your home is worth. If your home sells for less than what is owed on the loan, FHA insurance pays the difference – not you and not your heirs.

Q3 | Will the lender own

my home?

A | You still own your home.* Just like any other mortgage, your name remains on the title.

Q4 | Do I need a good credit

score for a conversion mortgage?

A | To qualify for a conversion mortgage, you need to be at least 62 and have enough equity in your home. There is no credit score requirement to get a conversion mortgage. Throughout the loan process, we review your credit history to determine if there are additional requirements. Q5 | Are there limits on how I

can spend the money from my conversion mortgage?

A | It’s your money to use however you wish! While some people use it to pay off medical bills, others may use it to plan for retirement or save for a rainy day.

(10)

WHY ONE REVERSE MORTGAGE?

9

Our Mission:

We enrich seniors lives through education, making smart financial recommendations, and

providing world class client service. We do this by living our core philosophies, such as: Every Client. Every Time. No Exceptions. No Excuses; Responding with a Sense of Urgency; and Always Do the Right Thing.

Where You May Have Seen Us One Reverse Mortgage…

• Is the largest retail-only reverse mortgage lender in America.*

• Is a Quicken Loans company, which means we have a combined 40+ years of

mortgage experience.

• Is licensed in all 50 states (currently operating in 47).

• Has a team of 150+ licensed mortgage specialists that are highly trained and experienced to build a customized solution for seniors.

• Can assist people 24 hours a day, 7 days a week.

• Provides the highest level of client

service. Our 98% client satisfaction rating is proof.**

Credentials

• We are approved by the Federal Housing Administration (FHA) and the

Department of Housing and Urban Development (HUD).

• We have an A+ rating with the Better Business Bureau.

• We are a proud member of The National Reverse Mortgage Lenders Association (NRMLA).

• We are a proud member of the Mortgage Bankers Association (MBA).

*U.S. Department of Housing and Urban Development Fiscal Year 2015 HECM Endorsement Reports (1/1/15-7/31/15), based on active lenders. **Satisfaction rating is based on reviews from http://www.onereversemortgagereviews.com

BBB

(11)

MEET A FEW

experts

10

“I enjoy what I do because it allows me to influence people’s lives for the better. Giving homeowners an opportunity to enjoy the fruits of their labor while they

still have a chance to do so.”

“I connect with my clients to understand what their goals are with their finances. It is so rewarding for me

to be able to empower my clients financially with the reverse mortgage program.”

“Helping and serving others is a passion of mine. I love giving our clients the freedom and flexibility to enjoy

retirement on THEIR terms.”

“I believe in treating each of my clients like family. I take the time to get to know my clients on a personal level as well as understand their financial situation to help align

the program with their goals.“

“I understand that you have worked hard your whole life and you shouldn’t have to struggle now. Allow me to

show you how a reverse mortgage can make the most of your retirement.“

“Years ago I served our country in the Marine Corps, today I have the privilege of serving our clients here at One Reverse. I’m grateful that I get to make a positive impact, not just today, but for the rest of their lives.“

Here at One Reverse Mortgage, we care deeply about people and it shows in the high level

attention our clients receive. We have more than 150+ licensed specialists ready to work with you and they are experts in conversion mortgages. Conversion mortgages are all we do! Our licensed specialists are with you throughout the entire process of getting your conversion mortgage and will answer all your questions along the way.

AARON SHAW

|

Since 2009

MARCUS SETTLES

|

Since 2005

BRUCE OLSEN

|

Since 2005

VENUS GREEN

|

Since 2004

KATE BRONSON

|

Since 2010

JERRY JONES

|

Since 2010

(12)

“

MEET A FEW

clients

11

MIKE B. Age: 63 | Georgia

Mike turned 63 and was still working. He reviewed his finances and did some math. With an average amount of debt and a 30-year mortgage, he didn’t think he would be able to retire until he turned 75, which is when his mortgage would be paid off. He remembered a television commercial where Henry Winkler said “take control of your retirement today”. This made him call One Reverse Mortgage to get the details. When he found out he was approved for his loan, he gave notice at his job and retired immediately. He continues to thank One Reverse Mortgage for changing his life and allowing him to retire earlier than he planned.

At 72 and retired, Joan wanted to be closer to her friends, so she moved into a new house. After some time, she realized she couldn’t handle the payments. It quickly became a problem that put her in what she describes as a “dire situation”. She had seen many advertisements about a reverse mortgage and chose to call One Reverse Mortgage. It was most important for her to know the house remained in her name. She was happy to find out it did! Joan said “the reverse mortgage eliminated my mortgage payment and gave me the ability to meet my expenses at the end of the month with no anxiety. One Reverse Mortgage literally changed my life and I am so thankful.”

Jaqui and her husband were dealing with some medical issues that resulted in unexpected medical expenses. They had to explore all of their financial options. Their goal was to eliminate their debt and keep their home. Jaqui saw a One Reverse Mortgage commercial and it peaked her interest. She called to get some information and didn’t initially think they would move forward with a reverse mortgage. Jaqui said “as I went along, my confidence built and that was primarily due to the person I worked with at One Reverse – amazing! Once we were approved, we had instant relief. The reverse mortgage basically saved our lives – we would not be in our home today without it.”

We Have Lots of Happy Clients

Every client has their own unique story. Whatever their reason for getting a conversion mortgage, they will all agree that it changed their life. These are just a few of our clients and their stories. To see what other One Reverse Mortgage clients have to say, visit onereversemortgage.com/reviews.

... I was able to retire 12 years earlier!

“

... One Reverse Mortgage literally changed my life!

…the person I worked with at One Reverse was AMAZING! JOAN

Age: 72 | New Jersey

JAQUI

Age: 69 | New Mexico

...

(13)

FAMILY OF COMPANIES

12

Welcome to the Family!

One Reverse Mortgage is the largest retail-only reverse mortgage lender in the country.* We are also proud members of the larger Quicken Loans family of companies. We’re thrilled to welcome you to the family, where you’ll benefit by association!

As a valued part of our family, you get more than just great home finance options – we also provide you access to an array of products and services to support your retirement lifestyle.

Quicken Loans makes it easy and fast to refinance or buy a home.**

quickenloans.com

The largest independent provider of title insurance, property valuations and

settlement services in the nation. titlesource.com

The preferred real estate partner of Quicken Loans and your go-to for the best

real estate agents across the country. inhouserealty.com

Pioneer of wireless home security and one of the fastest growing

companies in the industry. protectamerica.com

Officially licensed in every major sport and entertainment property, Fathead®

offers life-size, high-def wall decals of your favorite athletes, entertainers and

characters, along with custom graphics for your home or business.

fathead.com Provides a unique sense of security for

older Americans, with a medical alarm. connectamerica.com

*U.S. Department of Housing and Urban Development Fiscal Year 2015 HECM Endorsement Reports (1/1/15-7/31/15), based on active lenders. **Quicken Loans is an Equal Housing Lender. Licensed in all 50 states. NMLS #3030

(14)