NEW YORK, March 19, 2013 /PRNewswire/ -- Generation Mortgage Company today unveiled its plan to reposition reverse mortgages as a flexible financial retirement tool and demonstrate the product's feasibility through a new App Planning Tool called "nu62(SM)."
In an industry that has been selling the benefits of how much money a homeowner can access in a single transaction, Generation Mortgage's "nu62(SM)" program shows brokers and consumers how to use a reverse mortgage as a flexible financial resource, enabling borrowers to age in place comfortably.
Generation Mortgage's new "nu62(SM)" App graphically plots the correlation of home equity amount to personal consumption to home equity credit line growth over any period of time in a person's life after age 62. It also compares a reverse mortgage's performance to a traditional mortgage and clearly demonstrates a reverse mortgage's advantage.
"Reverse mortgages were always positioned to give all eligible homeowners aged 62 and over an opportunity to tap into the available equity in their home as a financial resource," said Colin Cushman, president and CEO of Generation Mortgage, at the National Reverse Mortgage Lenders Association Conference being held in New York. "With the arrival of the closed-end Home Equity Conversion Mortgage (HECM) in 2009, came the trend for a one-time full draw. It was clearly suited for people that had more immediate cash needs," Cushman added."The way we are presenting reverse mortgages now shows that seniors can plan their consumption either all at once or over time depending on their plan," Cushman said. "nu62(SM)" shows brokers and borrowers both the risks and rewards of different consumption patterns. It makes the options transparent and easy to understand for the first time ever." Cushman was named CEO of Generation Mortgage last month after managing the credit risk of the reverse mortgage program at the Federal Housing Administration (FHA) where he served as the Director of Portfolio Analysis. In that role, he was responsible for developing valuation models to support product development, premium pricing, risk management and operations. He led the design and creation of the new FHA Home Equity Conversion Mortgage (HECM) Standard and Saver products, helped shape all policy guidance on the HECM program, and co-authored the paper titled, "Identification of Home Maintenance Risk in Reverse Mortgages."