Two Rules

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage

Laurie Denker MacNaughton © 2026

Over the years I have come to suspect many of life’s unforced errors could have been avoided by applying two rules. Stating this could presuppose credentials I do not possess, so let me be clear: these are strictly my observations after nearly 20 years as a Reverse Mortgage originator.

Rule 1: Don’t be dumb

Here I’m not talking about people who are inherently low functioning. God knows, this can come with its own brand of suffering, including an increased likelihood of falling into the hands of predators.

No, the kind of dumb I’m talking about is the kind of dumb otherwise smart people fall prey to.

Today a colleague told me about a call he’d taken from a fellow loan officer. The LO said, “The homeowner is 2 years behind on his property taxes and has a credit score in the low 400s. But do you think we can avoid escrowing for taxes and insurance on a Reverse Mortgage?”

No—no you cannot. It’s the law. And the LO knows it’s the law. He’s just being dumb.

Another example of dumb is perhaps more pernicious, if only because it’s easier to fall into. This kind of dumb comes from exclusively listening to one source of information.

If you’re only listening to—oh, I don’t know—let’s say Dave Ramsey or Suze Orman, you’re going to only get a highly-curated, highly-generalized perspective on finances. What these multi-millionaire entertainment personalities will not do is give you a multi-faceted perspective on your options.

And ruling out options without understanding those options is just dumb.

Rule 2: Don’t do dumb things

Doing dumb things is part of life. Not a fun part of life, to be sure—but part of life nonetheless.

One dumb thing I see distressingly often is smart people drawing down retirement savings without expert advice, thus potentially incurring needless taxes and penalties.

Recently I met with a couple who had gone into retirement with substantial savings, including a sizable 401-K. The husband fell sick shortly after retirement, and rather than seeking professional advice on a retirement withdrawal strategy, they took money from whichever account was most easily accessible. Their tax burden became enormous, and this significantly reduced the length of time their savings lasted. They hadn’t looked into a Reverse Mortgage sooner because “Dave Ramsey doesn’t ‘believe in them,’” whatever that means.

I’ll bet Dave Ramsey doesn’t believe in losing a home to foreclosure, either.

I could go on, but you get the point.

A reverse mortgage is not a fit for everyone—no one financial product is. But it’s important to know the FHA-insured reverse mortgage is neither exotic, nor mysterious, nor more complex than any other line of credit. It can, however, add significantly to a long-range financial plan.

For more information on how a reverse mortgage might fit your needs—or the needs of one you love—give me a call. I always love hearing from you.

Home in Foreclosure!

by ReverseLady, posted in Divorce, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage

Laurie Denker MacNaughton © 2026

“I heard your company has a loan that gets older homeowners out of foreclosure. Do you know what they’re talking about?”

Yup—yes. Yes I do.

Well, at least I know a reverse mortgage may provide a way to get aging homeowners out of foreclosure.

If homeowners who age-qualify for a reverse mortgage have sufficient equity to make a reverse mortgage work, we stand a significant chance of saving the home.

Homeowners will almost certainly ALSO need enough equity so we can set up a life-long property tax and homeowner’s insurance set-aside (think: big “escrow”), but so long as we can do this, we can move forward with a reverse mortgage application.

Every year we save aging homeowners from foreclosure, and this year is right on track.

Does this mean we can save every home? Of course not.

But because reverse mortgage credit guidelines differ significantly from those surrounding forward mortgage guidelines, we should run numbers to see if we can provide a solution.

Give me a call. I always love hearing from you.

Laurie

Difference Between a HELOC and a Reverse Mortgage

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Financial Planning, Retirement Planning, Reverse Mortgage

Laurie Denker MacNaughton © 2025

What is the difference between a reverse mortgage and a home equity line of credit (HELOC)?

Traditional equity lines, of course, have a required monthly mortgage payment, and the more you borrow, the higher the month-end mortgage payment becomes. Also, most HELOCs have a 10- or a 15-year term, meaning the full balance is due at the end of the term. If the home falls in value during the life of the loan, the full balance is still due.

A reverse mortgage line of credit does not have a monthly repayment obligation. Rather, the mortgage is repaid on the back end, in reverse, when the last title holder permanently leaves the home. Most commonly, the heirs sell the home and the loan is repaid at the time of closing. However, the heirs can refinance or repay the loan and keep the home.

One of the most important things to note with a reverse mortgage is that if the home falls in value there is never a deficiency due. This means that if the loan is underwater at the time it’s sold, the home will repay what it can, and any shortfall will be covered by the FHA mortgage insurance.

A reverse mortgage line of credit can be a transformative retirement resource, and may provide one of the biggest retirement buckets in a homeowner’s portfolio.

If you’d like to see if a reverse mortgage may be a fit for you – or for someone you love – give me a call. I always love hearing from you!

Mortgage Rate Mythbusting: Destroying the most common misconceptions

by ReverseLady, posted in FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse for Purchase, Reverse Mortgage

Setting the record straight on mortgage rates and economic drivers

By Clayton Collins

Published by: HousingWire, August 1st, 2025

Bad takes about mortgage rates spread faster than wildfire—especially when they come from politicians or go viral on X. But when these narratives are misleading or flat-out wrong, they don’t just confuse consumers. They erode trust in our industry and inject unnecessary chaos into an already complex housing market.

It’s time to set the record straight on the most persistent myths about mortgage rates—some of which have been amplified by high-profile figures who should know better.

Myth #1: “One man controls all interest rates”

On July 31, Rep. Thomas Massie (R-KY) fired off this tweet: “It’s absurd that one man sets interest rates for a ‘free’ country. End the Fed.”

The tweet racked up 3.7 million views. It also fundamentally mischaracterizes how U.S. monetary policy actually works.

The reality: Interest rates are set by the Federal Open Market Committee (FOMC)—a 12-member voting body that includes seven governors appointed by the president and confirmed by the Senate, the New York Fed president and four rotating regional Fed presidents.

Jerome Powell may be the face of Fed policy, but he doesn’t set rates by decree. Policy moves are debated, voted on and shaped by extensive data analysis and institutional perspectives. The “one man” narrative isn’t just wrong—it’s dangerously simplistic.

Myth #2: “The Fed doesn’t control mortgage rates”

The reality: This one’s particularly insidious because it’s partially true, which makes it harder to debunk—but let’s agree that the statement by itself is filled with falsehoods. The Fed doesn’t directly set mortgage rates, yes, but its policies have massive indirect influence on mortgage pricing.

Most mortgage rates—especially the 30-year fixed—track closely with the 10-year Treasury yield. Fed actions like rate hikes, forward guidance and quantitative tightening directly impact investor expectations, bond yields and ultimately mortgage rates.

Fed Chair Powell made this crystal clear during a 2025 Senate hearing:

“Monetary policy works through interest-sensitive spending. There is no more interest-sensitive spending than buying a house and having a mortgage…. Our tighter policy is having an effect on economic activity in the housing sector.”

He added: “The Federal Reserve does not control housing supply, but its actions do have a massive effect on housing supply.”

Translation: The Fed isn’t pushing the button on your mortgage rate, but it’s absolutely adjusting the levers that move the market.

Myth #3: “Mortgage spreads don’t matter”

The reality: This isn’t a myth born from overt misinformation—it’s a myth born from omission. Most media coverage and political commentary stops at the 10-year Treasury or Fed Funds Rate. But mortgage rates are also shaped by the spread between the 10-year yield and the 30-year fixed rate.

This spread is driven by investor appetite, risk premiums and MBS pricing. Ignoring spreads leaves consumers with an incomplete picture.

As HousingWire Lead Analyst Logan Mohtashami puts it: “We’re starting to teach people mortgage spreads, and I’m really happy about that—because nobody knew what it was, but it’s so important.”

During periods of financial stress, spreads can widen, keeping rates elevated even if Treasury yields fall. The myth isn’t that spreads are fake—it’s that they’ve been left out of the conversation for too long.

Myth #4: “Higher federal debt means higher mortgage rates”

The reality: The federal debt has been increasing for decades, while mortgage rates have been declining over the same period. The recurring idea that bond vigilantes will punish the U.S. with higher mortgage rates due to federal debt has been debunked repeatedly.

In the 1990s, the federal debt was much lower, along with a lower debt-to-GDP ratio and smaller deficits, but mortgage rates during that decade were higher on average than from 2010-2025.

Mohtashami has pointed out that 65% to 75% of the variability in the 10-year yield and 30-year mortgage rates throughout an economic cycle is influenced by Federal Reserve policy, along with nominal growth and inflation expectations. The overall state of the U.S. economy also plays a crucial role in determining these rates.

Bottom line: We need smarter conversations

As misinformation and partial perspectives about mortgage rates swirl through the industry, professionals must double down on financial literacy. Mischaracterizing rate policy doesn’t just confuse consumers; it undermines confidence in the market and distracts from real economic issues. As I discussed with Sarah Wheeler on the recent HousingWire Daily podcast, consumer psychology is one of the leading factors in our current “stuck” housing market.

Mortgage professionals, economists and journalists all have a role in correcting the record. The path to affordability starts with understanding, and understanding begins with fact-based reporting—not viral outrage.

The housing market is complex enough without adding manufactured confusion to the mix. Let’s focus on what actually moves rates, not what gets retweets.

It’s a big down payment. But bigger than WHAT?

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse for Purchase, Reverse Mortgage

Laurie Denker MacNaughton © 2025

I know this is a bit weightier than usual—but this conversation was SO profound that it needs recounting.

Brenda and her husband were due to retire in late 2025, and they had just downsized into a beautiful new home that was perfect for aging in place.

Four weeks after moving in Brenda’s husband died, suddenly and unexpectedly. Six weeks after THAT Brenda had a massive stroke and spent weeks in the hospital and then in rehab. Now she is deeply in debt and behind on her new “forward” mortgage.

Ironically, when I spoke to Brenda today she said she and her husband had asked their loan officer about using a Reverse for Purchase home loan to buy their new home.

The loan offer’s comment?

“You don’t want to do a Reverse for Purchase. The down payment is big.”

Big? Bigger than WHAT?

Bigger than NEVER falling behind on monthly mortgage payments? Bigger than being able to live in her own home—even after the loss of a spouse? Bigger than keeping her home even though she has had to retire ahead of schedule?

Brenda may have missed the opportunity to live in this home. I don’t know—but I do know her current plight was totally avoidable. I referred her to legal counsel in the hope something may work out.

Why am I recounting this really sad story?

Because it’s life. And because “life is what happens while you’re making other plans.”

A Reverse Mortgage is a home loan. But sometimes a Reverse Mortgage is not JUST a home loan. Sometimes it changes an aging homeowner’s entire future.

If you would like to discuss your plans—or the plans of one you love—give me a call. I always love hearing from you.

Blessings,

Laurie

Another loan officer said I don’t qualify for a home loan (or, Why you might qualify for Reverse Mortgage)

by ReverseLady, posted in Divorce, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Property Tax, Retirement Planning, Reverse for Purchase, Reverse Mortgage

Laurie Denker MacNaughton © 2025

If you are a homeowner aged 62 or older and are trying to refinance the home you’re in or buy a new home, chances are you know the drill: your income is fixed, savings may be limited, and your debt may be relatively high compared to your income. In other words, you are having a hard time getting a home loan.

So why, then, with the exact same financial profile, might you qualify for a Reverse Mortgage after you were turned down by other lenders?

Here’s why:

First, there’s never a mandatory monthly mortgage payment. That right there makes a huge difference. Take just a second and think about what a difference it would make if you had NO required monthly mortgage payment. You are always allowed to make a payment if you choose to do so.

Second, to qualify you only need a monthly residual income of $529 for a single person, and $886 for a couple. “Residual income” means the amount of money you have left over at month’s end after we account for your property taxes, homeowner’s insurance, HOA dues or condo dues (if applicable), and the minimum amount due each month on your credit accounts.

Be certain to note that no matter what kind of home loan you have – or even if you have no home loan at all – property taxes and homeowner’s insurance are still a monthly expense. Many aging homeowners have some kind of property tax waiver, and a reverse mortgage does not impact eligibility.

Even though this loan is specifically designed for homeowners and homebuyers aged 62 and older, not everyone is going to qualify. However, millions of Americans have chosen to use a reverse mortgage to either refinance the home they’re in or to purchase their aging-in-place home due to the financial flexibility it may provide.

If you would like to talk about whether a reverse mortgage might be a fit for your retirement plans, give me a call – I always love hearing from you!

Laurie

Mistakes to Avoid—Women in Retirement

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story

Laurie Denker MacNaughton © 2024

It’s not often I start off with a disclaimer… but here goes:

I am a reverse mortgage specialist. This means I am a loan officer who only does reverse mortgages.

Here’s what I’m not: I am not a financial planner. I am not an attorney. I am not an insurance agent.

Consequently, my observations below are going to be simply that, namely observations. But, they are observations made over the course of many years, and ones that deeply influence the way I am laying plans for my own eventual retirement.

There are four categories of missteps I see again and again that are made by women in their 60s, mistakes which can deeply impact financial security in the retirement years.

  1. Retiring at 64. This is tricky, as there often are reasons someone retires in their early 60s—illness, an unwell spouse  or parent, loss of a job. There’s no controlling for the curveballs life can throw. But, if possible, work longer. Even a couple more years  or part time work can make a big difference.
  2. Taking on significant debt shortly before retirement. It’s uncommon to see someone whose retirement income is higher than their pre-retirement income was. When relying on Social Security and retirement savings, having to also service a large car payment, credit card debt, or a HELOC payment can completely throw off even carefully laid financial plans.
  3. Gifting monies to family members. I know this is a touchy subject, as many women hold the belief that family takes care of family no matter what. However, a change in thinking often needs to take place. If the gifter runs low on funds and the recipients have not gained the ability to handle their own finances, everyone can go down with the ship. A related topic includes co-signing credit cards, college loans, or auto loans for family members. If one party defaults, that debt does not go away, and the aging party can find herself deeply in debt and without a fallback position.
  4. Underestimating life expectancy. Needless to say, this one is very difficult, as no one comes with an “expiration date.” However, I have had scores of women tell me they never imagined they would live so long, and that they burned through their savings at too fast a clip early in retirement. Don’t assume you’re only going to live into your early 70s. According to the U.S. Census Bureau, a 65-year-old woman has a life expectancy of 20.8 years.

There is so much more I could say on this topic, but I will leave it here and simply say the following: in my role as a reverse mortgage specialist I have worked with hundreds of homeowners as they laid plans for retirement. The reason for this is because a reverse mortgage may play a significant role in improving financial survivability in retirement.

A reverse mortgage won’t be a fit for everyone, and not everyone will qualify.

But if you are—or an aging loved one in your life is— struggling financially, give me a call. Together let’s see whether a reverse mortgage might be part of the solution.

Aging in America—By the Numbers

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage

Laurie Denker MacNaughton © 2024

The population of older Americans is huge—and growing. By 2030 nearly a quarter of the population will be over 60, according to the U.S. Census Bureau.

In order to study trends and trajectories, experts who study aging use the term “cohort” when  looking at groups.

As a quick personal aside, through the years I have often pondered how oddly asymmetrical aging can be. In my role as a reverse mortgage loan officer, both aging homeowners and the adult children of aging parents frequently tell me that one spouse or parent is holding his or her own—or even thriving—while the other is deep in the throes of mental or physical incapacity. Consequently, looking at large groups of people will not reveal what someone’s personal aging journey may entail, but numbers do give a statistical picture of what is typical.

The pandemic profoundly impacted older adults in many ways, including financially. In the years following the pandemic older workers who had lost their job were much less likely to get rehired into their previous position. In the tight post-pandemic job market, “unretiring” became prevalent for those willing and able to take jobs traditionally held by teens, such as cashier, call center representative, barista, and receptionist. These lower-paying jobs mean over 14% of those over 60 live below the nationally-established poverty level, according to National Council on Aging.

The youngest cohort that is considered “older adult” comprises those in their 60s. Many in this age group are often working full-time and are still physically active. This means they travel, seek to acquire new skills, and start new business in much higher numbers than did previous generations. Technological proficiency is common, but so is divorce. A distressingly high number have done no end-of-life planning, 62% carry credit card debt, and 50% have no retirement savings (U.S. Census Bureau).

Those in their 70s make up the next cohort. Most people in this group have either retired or are actively making plans to retire. Serious health issues may start to surface, and 58% of women and 28% of men are widowed by the age of 75 (Census.gov). According to the IRS, by the age of 70½, 79.5% of Americans draw more than their Required Minimum Distribution from savings.

The final cohort comprises those aged 80 and older. 31% of this group still has mortgage debt, and 92% rely on their Social Security benefits for the majority of their income, according to National Council on Aging. More than 70% of in this cohort will eventually require in-home care, and the number of Americans who live to be 100 or older will quadruple over the next 3 decades (Pew Research Center).

So why all the numbers?

Here’s why…

Research put out by Morningstar Center for Retirement & Policy Studies in August 2024 states the following:

45% of American households will run short of money in retirement. The outlook for single women was even more bleak, with about 55% of them seen as at risk in retirement, compared with 41% of couples and 40% of single males.

The study goes on to state that two-thirds of Americans fear running out of money more than death, 58% worry about losing independence, and 52% fear being a burden on family.

And frankly? I’m not sure any of these numbers come as a surprise to most of us.

It’s here that a reverse mortgage may play a role in improving financial survivability in retirement.

A reverse mortgage won’t be a fit for everyone, and not everyone will qualify. But if you are—or an aging loved one in your life is— struggling financially, give me a call. Together let’s see whether a reverse mortgage might be part of the solution.

Congress must act or automatic Social Security cuts begin in 2033

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story

Laurie Denker MacNaughton © 2024

Unless Congress takes action, in a little more than 8 years Social Security recipients will see their monthly payments cut by 21%. And, astoundingly, some in Congress are talking about instituting this cut even earlier in the name of “affordability.”

Letting Social Security go bankrupt would direly impact America’s seniors, as nine out of ten rely on their benefits for a portion of their retirement income. Furthermore, National Institute on Retirement Security reports that 40% of older Americans rely solely on their monthly Social Security check.

Those most severely impacted will be retirees who were low- to middle-income earners. There is deep irony in the fact that some of America’s wealthiest are in charge of making the decisions that could fix this longstanding problem. But they’re running out of time to act.

Only Congress has the power to make changes to Social Security, and congressmembers are elected every two years.

Take away? Ask your congressmember what they’re doing to protect YOUR benefits.

For more on this topic, see:

“We never expected to live this long”

by ReverseLady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage

Laurie Denker MacNaughton © 2023

Most of us get very judgy when it comes to money. I don’t know why.

Yesterday I had a closing with a very old, very dear couple, both of whom were groundbreaking professionals in their respective fields.

Both have pensions, both have Social Security—and both had significant savings.

But she is now 93 and he is 96, and their savings are long gone. Their guaranteed income is just not enough to meet their care needs.

At the closing table the husband said to me, “We don’t want our friends to know we’re doing a reverse mortgage—but we need money. We never expected to live this long.”

Yup, I hear you. When you were born, dear one, your life expectancy was more than three decades shorter.

A reverse mortgage is home equity mortgage. But it’s a mortgage that has no required monthly payment. Because it’s a loan, it must be repaid—but it’s repaid on the back end, in reverse, when the homeowners no longer reside in the home. Any remaining equity belongs to the heirs.

One last thing: a reverse mortgage won’t be a fit for everyone. But if an aging loved one in your life is struggling financially, give me a call. Together let’s see whether a reverse mortgage might be part of the solution.

Blessings to you and yours in this season.

Laurie