1. Driving Your Business in Reverse Presented by Glenn T. Thomas Reverse Mortgage Sales Manager Office: (916) 549-3506 Cell: (510) 394-5610 Fax: (916) 594-0914 Glenn.Thomas@EliteNorcal.com

2. Learning Objectives HECM (Home Equality Conversion Mortgage) How Reverse Mortgages can increase your income How a Reverse deals work for MLO, Realtors & Insurance Agents Market Opportunity Who are your potential clients Be an innovator and expert

3. HECM Features and Benefits A reverse mortgage enables older homeowners (62+) to borrow against the equity in their homes without having to sell the home, give up title, or take on a new monthly mortgage payment What are the Payment Options? Lump sum at closing Line of credit Tenure (for up to life) Term Product Options 1.The HECM FIXED 2.HECM ADJUSTABLE (LIBOR) 3.HECM PURCHASE It’s a tool to help plan and manage retirement

4. NMLS MLO Option 1 Robert Johnson is 75 years old and has a $175,000 mortgage on his home valued at $450,000 Used the HECM to payoff current mortgage and payment of $1,400.00. Payoff car balance of $5,600.00 Put cash into his savings and invest Estimated Home Value: $450,000.00 Current Mortgage:$175,000 Payoff Cash Amount to borrower: $27,990.00 At Closing $57,990.00 Line of Credit (2 nd year) The reverse mortgage has a growth rate that increases available funds over time Can never be reduced or eliminated due to market changes

5. The Cycle Borrower ID the need Find the right option HECM counseling Application Processing, appraisal & approval Closing = payday The Reverse Mortgage process takes between 30-45 days for most borrowers.

6. What’s in it for me? Reverse Compensation Total loan Balance: $222,859 The adjustable HECM pays 400 bsp at the 1 st tier $222,859 x.0400 = $8,914.36 Less processing and audit fees the final total compensation for a MLO would be $8,114.36 10 loans per year x $8,114.36 = $97,372.32 Forward Compensation Total loan Balance: $222,859 The 1 st tier under the DBO pays 70 bsp $222,859 x.007 = $1,560.01 Less processing and audit fees the final total compensation for a MLO would be $965.01 10 loans per year x $493.50 = $11,580.16 The Realtor would be paid under their split agreement for the purchase and sell of the real property.

7. NMLS and Realtor Option 2 Robert Johnson is 75 years old has a $175,000 mortgage on his home valued at $450,000 and now wishes to downside to a smaller home Sell his current home after closing he has $275,000 Pay cash for the new $250,000 property leaving $25,000 to invest and live on… OR Use a reverse mortgage to finance the purchase of their new home. At 75 years of age… A reverse mortgage can provide $$$ in proceeds to purchase a new home. Robert ONLY has to come to closing with $103,370. This leaves $171,630 to fund remaining longevity.

8. What’s in it for me? Reverse Compensation Total loan Balance: $155,500 The fixed HECM pays 450 bsp at the 1 st tier $155,500 x.0450 = $6,997.50 Less processing and audit fees the final total compensation for a MLO would be $6197.50 10 loans per year x $6197.50 = $61,975 Forward Compensation Total loan Balance: $155,500 The 1 st tier under the DBO pays 70 bsp $155,500 x.007 = $1,088.50 Less processing and audit fees the final total compensation for a MLO would be $493.50 10 loans per year x $493.50 = $4935.00 The Realtor would be paid under their split agreement for the purchase and sell of the real property.

9. Insurance Agents As a Insurance Agent/financial planner, you may have many prospective clients that appear to not have any money to invest that are over the age of 62. You may have even considered the prospective client a “dead” lead and put them off to the wayside. THIS IS NOT THE CASE!!!

10. More Options What if we told you there was a way for these “dead” leads to unlock funds they have access to? What if we told you that you could increase your commissions while helping seniors secure their retirement? What if we told you that you have the “keys” to unlock a segment of our mutual market that has been combed through but never fully utilized?

11. Many seniors are not educated on reverse mortgages and the many financial benefits that can be derived with the proceeds borrowers are eligible to receive tax-free. The proceeds can utilized on several different platforms including: Life Insurance policies Investing opportunities Stocks Bonds Mutual Funds Plus many more!

12. We will work with your clients to help them get the funds you need to secure their retirement! This niche will allow you to convert more prospects into actual clients while furthering your credibility in the industry as an innovator. Take advantage of this referral networking opportunity with Elite Mortgage to better service your client and increase your income!

13. Bring Them Together Reverse Mortgage No P&I payments Stay in home Peace of mind Extra Money Non recourse Vacations Insurance Money to take care of needs Life (leave something to kids) Long term care Investments Annuity Stocks Real Estate

14. CONTACT INFORMATION Glenn T. Thomas Reverse Mortgage Sales Manager Office: (916) 549-3506 Cell: (510) 394-5610 Fax: (916) 594-0914 Glenn.Thomas@EliteNorcal.com