Is it proper in this forum to request a signature on this change.org "Senior Housing and Entitlements" campaign-related topic? Thank you!
Google: Petition · Senior Housing and Entitlements · Change.org
https://chng.it/fgKFdtL286
(Copy and paste the link above for the campaign details)
Dean Sumer with Loan Warehouse started this campaign to petition the National Council on Aging
Often we have seen older clients that would like to purchase a home. They have savings in the bank from a lifetime of toil and hard work. Often with Social Security income not being sufficient to qualify for a mortgage, our senior community is encouraged by many lenders to begin distributions on their IRA which gets added to ordinary income. Those that wish to withdraw or draw down their retirement savings either in one lump sum to avoid a mortgage, or monthly mandatory minimum withdrawals, to qualify for a mortgage, this ordinary income can then disqualify, negate, or reduce benefits to seniors from government programs such as Medicaid, social security, Medicare, food subsidies, and other aid programs earmarked for the elder, whereas otherwise, they would qualify.
In Medicaid for asset qualification, the personal home does not count against Medicaid qualification. By that same rule, why wouldn't one be able to utilize their Individual Retirement Account money without it counting against the senior citizen as these distributions count toward ordinary income, which then disqualifies aid programs such as Medicaid? This is an inconsistency that needs a second look.
The current IRA withdrawal maximum of $10,000 for a home purchase without a penalty is not enough to make up the difference to buy a home as a senior. This $10,000 doesn't go far enough for seniors. Additionally, the money is still added to ordinary income which can affect eligibility for certain senior programs. Adding a retirement distribution from these taxable retirement plans negates multiple senior entitlements. Yes, let the income be taxable but don’t let it count against the eligibility of programs when these monies are used to acquire a primary residence.
"Warehouse lending is a line of credit given to a loan originator. The funds are used to pay for a mortgage that a borrower uses to purchase property. The life of the loan generally extends from its origination to the time it is sold on the secondary market either directly or through securitization. "
https://www.investopedia.com/terms/w/warehouse_lending.asp
Note the issue of secondary market. It seems to me that this is like house flipping, except that it's loan flipping instead.
I am aware that in the past loans were bundled and sold in a secondary market, but I'm only experienced with this on a commercial loan level. And from what I could see from a different viewpoint, it appears that this bundling was legitimate. And I do recall that some house loans were also sold in secondary markets.
What I would question is asking others to sign a petition that appears to be of benefit to you, if in fact you are a loan originator.
You walk a fine and well crafted line with this plea:
"let the income be taxable but don’t let it count against the eligibility of programs when these monies are used to acquire a primary residence."
Why would any senior want additional taxable income based on withdrawal of assets? I can see the merit of your position but do think that it seems to benefit you, if you really are a loan originator.
Are you in fact Dean Sumer? And 4 months ago did you start this petition which now has 17 signatures?
The company began as a nonprofit that connected charities to donors, but has transitioned into a for-profit company that makes money by selling advertised petitions on its website, Change.org.
Although it has a reputation in the United States for featuring progressive causes including environmental activism, anti-foreclosure petitions, and trade union advocacy, Change.org claims to be non-ideological. Regardless, the company’s business practices and potentially deceptive branding have led to criticism from all sides of the political spectrum."
Source: https://www.activistfacts.com/organizations/530-change-dot-org
It's also totally inappropriate for Dean Sumer to be manipulating to get support for his benefit that would benefit from petition support. To me, his actions are arrogantly insulting, especially to seniors.
Topic: Senior Housing and Entitlements
https://chng.it/fgKFdtL286
Often we have seen older clients that would like to purchase a home. They have savings in the bank from a lifetime of toil and hard work. Often with Social Security income not being sufficient to qualify for a mortgage, our senior community is encouraged by many lenders to begin distributions on their IRA which gets added to ordinary income.
Those that wish to withdraw or draw down their retirement savings either in one lump sum to avoid a mortgage, or monthly mandatory minimum withdrawals, to qualify for a mortgage, this ordinary income can then disqualify, negate, or reduce benefits to seniors from government programs such as Medicaid, social security, Medicare, food subsidies, and other aid programs earmarked for the elder, whereas otherwise, they would qualify.
For example, with Medicaid (in asset-based qualification states, of which there are currently 11 remaining), for asset qualification, the personal home does not count against Medicaid qualification. By that same logic, a senior should be able to utilize their Individual Retirement Account money toward the purchase of a primary residence without those funds being added to ordinary income.
The withdrawal can be taxed with a housing credit adjustment, enabling the qualification of certain income-restricted programs to continue. In 39 states, currently using income-based qualification for expanded Medicaid, this income then makes the senior ineligible for income-based programs such as Medicaid and can negatively impact their Social Security income. This is an inconsistency that needs a second look.
The current IRA withdrawal maximum of $10,000 for a home purchase without a penalty is not enough to make up the difference to buy a home as a senior. This $10,000 doesn't go far enough for seniors. Additionally, the money is still added to ordinary income which can affect eligibility for certain senior programs. Adding a retirement distribution from these taxable retirement plans negates multiple senior entitlements.
Yes, let the income be taxable but don’t let it count against the eligibility of programs when these monies are used to acquire a primary residence." Thank you for your the time to review this request!
What's more, current legislation on retirement account withdrawals needs to be updated to reflect today's housing costs. Guidelines can be set so that seniors in need can benefit and those who are not in need won't. The point is that lower-income seniors should not be penalized but incentivized for investing in housing with their own funds. Keeping seniors with low fixed incomes in decent housing is something we can all get on board with.
As a reminder, Medicare is health insurance for people 65 and older, not for the indigent, not based on income or assets. See the update above re Medicaid. The average median listing price in the USA per National Association of Realtors was $385,000, as of June 2021.
Medicaid and Medicare are often confused. "Aid" helps those in need regardless of age, who are among the poor. "Care" helps those who are 65 or older, and is available to all, regardless of finances.
Please consider adding your signature to: https://chng.it/fgKFdtL286
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