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Over 22 million senior homeowners are in the nation today.
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60% of the national population is 65-70 years of age.
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85% of senior homeowners want to remain in their home for the balance of their
life (AARP study)
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There is currently less than an estimated 1% market penetration, with Financial
Freedom funding approximately 50% of the total national production. This leaves
approximately 99% of the potential loans that fit the profile available to
those that have the best marketing strategy.
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There is an estimated $3 trillion in home equity on properties owned by senior
citizens that qualify for the program.
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5,574 people in the U.S. turn 65 years of age every day
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Funding volume in 2003 was about double that of 2002 and appears to be a
similar increase this year over last. Current monthly fundings nationally is
about 3,000 loans per month, with Financial Freedom funding 1,700 loans in June
2004.
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According to a recent article in the Consumer Reports Money Advisor, “More
seniors are in the red. Personal bankruptcy filings have surged 10 percent to
1,625,208 during the 12-month period ending December 31, 2003. Seniors, mired
in high levels of credit-card debt, are the fastest-growing age group appearing
in bankruptcy court. The credit-card debt carried by those 65 or older jumped
89 percent between 1992 and 2001, according to a report released in February by
Demos, a nonprofit public-policy group based in New York.” There is little
doubt that many of those included in this survey would have benefited from a
Reverse Mortgage, proof of the lack of awareness on a national scale.
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According to a FNMA study, Seniors taking a Reverse Mortgage have a 90%
satisfaction rate.
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NRMLA
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National Reverse Mortgage Lenders Association (NRMLA) is a membership
organization, based in Washington, DC for lenders, vendors, and other companies
that originate, service and/or invest in reverse mortgages.
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AARP
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Association for the Advancement of Retired Persons. With over 35 million
members, AARP is the leading nonprofit, nonpartisan membership organization for
people age 50 and over in the United States.
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Financial
Freedom
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Financial Freedom was instrumental in the development of the reverse mortgage
concept in the United States back in the late 1980s. Today, they are the
nation's largest reverse mortgage specialist, having helped tens of thousands
of seniors enjoy the benefits of this important financial tool.
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HUD Housing Counseling
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HUD sponsors certain approved housing counseling agencies that in turn provide
counseling services to citizens for free.
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Senior
Resources
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Dedicated to helping seniors and their families with accurate and up-to-date
information on senior housing options, finance, insurance and related lifestyle
issues.
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More that 90% (as high as 95% in many markets) of the loans funded will fall
under the FHA product HECM (Home Equity Conversion Mortgage). There are two ARM
options, one monthly adjustable and one annual adjustable, both based on an
index of the one-year Treasury Bill. Appraised value (used to calculate the
amount of proceeds) is limited to the market FHA maximum lending limit.
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A portion of those remaining Reverse Mortgages funded fall under the FNMA
product, Fannie Mae Home Keeper. This is also an ARM product based on the
one-month CD index. The value (used to calculate the amount of the proceeds) is
limited to the current FNMA lending limit.
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Financial Freedom also offers the Financial Freedom Cash Account with virtually
no limit on the value of the home used in calculating the proceeds. This is an
ARM product based on the six-month LIBOR. This product is not offered in all
states and, currently in our Southwest Region, is not offered in Texas, Kansas
or Oklahoma.
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Contact a FF Account Manger
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More Detailed Product
Information
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