ity to conduct daily activities relative to their contemporaries that owned their own residences. The survey’s authors felt that this data pointed to potential concerns on the availability of affordable rental housing for older Americans. “The study found older Americans who own their homes are more financially secure and generally experience fewer impediments to good health than their peers who rent,� said Professor Michael D. Eriksen of Texas Tech University, coauthor of the RIHA survey. “Owning a home provides the single largest asset in most Americans’ retirement portfolios, while renters have far more difficulty modifying their living space to adapt to any of the myriad physical ailments that tend to affect older people.� But for the mortgage industry, the expanding number of seniors brings about new concerns. For Rocke Andrews, vice president of NAMB—The Association of Mortgage Professionals and a broker at Lending Arizona LLC in Tucson, Ariz., a current challenge in loan origination for older borrowers is being seen in the qualification process. “Right now, we’re seeing a concern over the ability to repay ratio of 43 percent,� said Andrews. “A lot of older Americans are on fixed incomes and
retirement plans. There can be the ability to repay through asset depletion or other methods.â€? DesirĂŠe Patno, president and CEO of the National Association of Women in Real Estate Businesses, observes that locating the right type of residence for older homeowners can often taken a great deal of patience. “Finding single-level houses is a very big deal,â€? said Patno, noting that many older people are not comfortable with the staircase demands in two-level housing. “Not that many single-level homes being built. Also, not all older people want to live in a retirement community or a setting associated with being for the elderly.â€? Patno also notes that brokers that are eager to work with older borrowers often need to go the proverbial extra mile to locate them—and not in cyberspace. “This is a very different market,â€? she continues, noting that many older people prefer person-to-person communications rather than texting or e-mails. “You just cannot go on Facebook and say, ‘Here I am!’â€? Phil Hall is senior editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.
consumers who fall outside of qm continued from page 46
safeguards that have protected the lending industry and consumers for decades. This is all possible with technology currently in place, if the industry wishes to embrace higher credit reporting quality. It has been said that to ignore history you doom yourself to repeat it. Are we going to repeat the previous errors or learn from them?
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nmp professional of the month continued from page 63
why I decided that when I stepped out of baseball, it was one of those things where I felt umpiring would be perfect for me, because you have all of those qualities and traits that make you an umpire. I’ve been very fortunate to attend Major League Baseball umpire camps and meet professional umpires to improve my game. Those opportunities have made it exciting. Every year you try to better yourself with what you’re doing. Any parting words for our readers? Frommeyer: I think the thing you have
to remember is that, if you are passionate about what you do, stepping down from a leadership position doesn’t necessarily mean you won’t have a voice anymore. I am sure I’ll be vested in this industry and in NAMB in one way, shape or form, and I’m going to do everything I can to help shed a positive light on our industry. Robert Ottone is executive editor with National Mortgage Professional Magazine. He may be reached by phone at (516) 409-5555, ext. 314 or by e-mail at robertpo@nmpmediacorp.com.
Bridging the gap from broker to banker Contact: Stephen Bertrand sbertrand@ravdocs.com 800-343-7160
n Arizona Mortgage Professional Magazine n MARCH 2014
Terry W. Clemans is executive director of the National Consumer Reporting Association (NCRA). He may be reached by phone at (630) 539-1525 or e-mail tclemans@ncrainc.org.
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sure of all creditors, even those not being reported to the NCRAs, and the legal responsibility and benefit to report them to the mortgage consumer reporting agency to eliminate the conflict of interest of the mortgage originator potentially filtering debt to income altering disclosures. The QMCR and QMCR Score is a hybrid approach that incorporates the evaluation of more than 40 years of mortgage credit reporting processes. It includes the best practices of the automated underwriting technology systems that revolutionized the mortgage process in the mid-1990s, as well as the