Aging in place. It’s a relatively new term for a very old concept: remaining in your own home as you grow older. Once upon a time, this wasn’t an issue. Extended families ensured that someone would be available to look after Grandma or Grandpa should the time come when they needed assistance.

Today, when even nuclear families are something of an anachronism, the picture has radically shifted. While many people live healthy, active lives well into their 80s, 90s, and beyond, and are able to care for themselves in their own homes, others require assistance at some stage due to circumstances such as declining health, an accident, or a similar need that precludes their ability to continue managing independently.

For people who are healthy and want to remain in their own residence as they grow older, a reverse mortgage can help make this a reality. The first step is determining whether aging in place is in your best interest.

Here are seven guidelines homeowners can use to decide whether aging in place makes sense for them, and if so, whether to explore a reverse mortgage. Aging in place can serve a senior well if:

• You have sufficient equity in your home to qualify for a reverse mortgage;
• Your health is generally good, and you’re mobile;
• You have a network of local family, friends, and neighbors you can rely on;
• You drive — and alternate transportation is readily accessible;
• You live in a safe neighborhood;
• Your home can be modified to address changing needs (we’ll discuss this in depth in an upcoming post);
• You’re outgoing, well connected, and able to reach out for social support.

 But: what if one partner later becomes ill or requires assistance?

In Part 2 we’ll look at housing options for seniors who may no longer be able to live independently in their own home.

Don’t be fooled about refinancing from an existing HECM to a new one.

Today an existing HECM borrower called and described his situation.  He needed no additional cash but was enchanted with the idea that he could get more proceeds.  He is seventy years old and lives in a nice home by himself.  He got his loan in 2006.  His home was worth over $700,000 back then; today it is estimated to have a value in the mid $500,000 range.  With higher lending limits and the new changes, he wanted to find out what was available to him.

When the caller heard he could get $70,000 more, he became very interested.  He also liked the idea that there would be no monthly servicing fees like the $25 per month he is paying right now.  Then came the bad news.  First, he would probably have to go to a fixed rate HECM with a 4.99% interest rate rather than the 2.4% he was currently accruing under his adjustable rate HECM.  Second, the FHA Mortgage Insurance that he was accruing monthly on his loan would rise to 1.25% per annum from the 0.5% he was incurring now.  Just the FHA insurance cost alone would increase on his current balance by over $170 per month.  All in all the caller did not like the alternatives but was happy to hear what his choices were.

Yesterday, a woman called asking if I heard that she could get a HECM with a 4.99% stabilized interest rate but with more proceeds?  Last year at our suggestion she had taken out an adjustable rate reverse mortgage and was now receiving over $2,500 per month in tenure payments.

Tenure payments provide a specific amount of cash borrowers can receive monthly over the life of the HECM but they generally vary by the age of the youngest borrower, the expected interest rate, and the amount of available proceeds dedicated to the tenure payouts.  They can only be obtained with an adjustable rate HECM.

When the woman discovered that getting the 4.99% fixed interest rate would cause her tenure payments to terminate and she would instead be required to take all of loan proceeds upfront, whether she needed them or not, her tune changed.  Then as it became clear FHA premium costs would go up as well, all of a sudden, she did not want to trade out of her current HECM to a new one, even if she could get a few thousand more.  When asked if the caller had provided the negative aspects of refinancing, she proclaimed loudly:  “No.  They just wanted to send me “my” new loan application….”  She was not happy with the caller.

Some reverse mortgage originators care more about churning new loans than providing needed information.  It is important that you find out the facts.  So if you have questions or want the information you need to determine if a refinance is for you, please click on the “Have a question?” button at the top of your screen.

Counseling is a consumer protection Congress and the Department of Housing and Urban Development (“HUD”) built into the HECM program to 1) provide information, 2) answer questions, and 3) help consumers understand how a HECM will impact them.  Counseling is provided through counselors employed by qualified non-profit financial agencies, unrelated to any lender.  All HECM borrowers must take counseling.  Counselors are trained on HECMs and must pass a thorough exam on them.

HECM counseling now includes the Financial Interview Tool (“FIT”) created by the National Counseling on Aging (“NCOA”).  Counselors will use FIT responses to provide 1) an overview on how a HECM will help not only now but also in the future and 2) information on other government programs.

Many participants will be required to engage in a more thorough analysis of their overall situation through the Benefits Check Up (“BCU”) program also created by the NCOA. While there are no wrong responses to either FIT or BCU questions, they are an integral part of counseling and must be answered to receive the counseling certificate.  Once a signed certificate is received and a loan application completed, the HECM loan process can move forward.

Participants find counseling far more rewarding when they are prepared.  An experienced Mortgage Loan Originator can help you throughout the entire HECM process including counseling preparation.  To get experience you can count on, click on the “Have a Question?” link at the top of the screen and request the contact info for one of our approved and pre-screened loan originators today.

Check back soon for Reverse Mortgage Changing – Part 2

Jim: If any reader is sitting on the fence thinking about when is the right time to get a reverse mortgage, we believe the changes we will be seeing on October 1 will make that decision much easier but will require action right away.

Right now lenders are reducing upfront costs, eliminating monthly servicing fees, or even paying the upfront 2% HUD mortgage insurance premium (MIP) but no one knows how long secondary market conditions will permit this situation to continue.  On October 1, the start of the next federal fiscal year, we expect to see increased ongoing MIP costs and lowered maximum available proceeds.  That makes August and September possibly the best months to get a government insured reverse mortgage for up to October 1, 2011 or as some believe, even longer.

RMinfo: Please describe the expected changes.

Jim: “HECM” stands for Home Equity Conversion Mortgage, the only reverse mortgage insured by the federal government through FHA (Federal Housing Administration), part of HUD (U.S. Department of Housing and Urban Development).   Averting loss in the program is highly dependent upon home appreciation.  Drastic cut in program risk and increased insurance premiums can mitigate the projected losses that lower expected home appreciation creates.

As reported at the Washington, DC Conference last month, the presidential budget office has estimated that if the HECM program is not modified, the HECMs which will be generated in the next fiscal year will result in over $1.7 billion in discounted net losses to the federal government by the time all of them terminate many years from now.  If no other changes are made or no subsidy is granted by Congress, FHA estimates that maximum proceeds available to borrowers today would have to be lowered by more than 23%.  Based on the $798 million discounted net losses projected for HECMs endorsed during this fiscal year, maximum available proceeds are already 10% lower than they were on September 30, 2009.

FHA and the reverse mortgage industry are working together to avoid significant reductions to maximum available proceeds but the trade off will be slightly lower maximum proceeds and increased “ongoing” mortgage insurance premiums (MIPs).  But the program will still need a Congressional appropriation estimated at between $150 million and $250 million, unless the HECM Lite product can be approved and its positive impact on the HECM program can be agreed to before October 1.

Specifically HUD is asking Congress for the power to increase the cost of the “ongoing” MIP charged on the outstanding loan balance each month from 0.5% per annum to 1.25% per annum.  If HUD can increase “ongoing” MIP, maximum proceeds will have to be lowered below their current 90% level but the reduction could vary up to a maximum of 4% depending on the expected interest rate and the age of the youngest borrower.

RMInfo: What happens on September 11, 2010 and January 1, 2011?

Jim: Counseling will have dramatic changes starting September 11.  Since program inception counseling has been required and is considered one of the key consumer protections in the program.  Then on January 1, 2011, the maximum proceeds on homes valued above $417,000 are scheduled to be reduced by up to one-third.

Next month I hope to provide more information on these topics.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim: Starting as of March 17, 2010, Security One Lending (S1L), Inc. announced that it dropped monthly servicing fee charges on all new fixed rate HECMs.  The result is more cash upfront to borrowers.  Currently this could make a difference of about $1,000 for the oldest borrowers to about $5,700 for the youngest.

S1L and other lenders generally charge the going rate for servicing fees of $30 per month which currently required set asides from about $1,000 to around $5,700.  Unfortunately changed market conditions did not impact any adjustable rate HECMs or those fixed rate HECMs which are already in place.  Those loans will continue to incur monthly servicing fees.

“HECM” stands for Home Equity Conversion Mortgage, the only reverse mortgage insured by the federal government through the Federal Housing Administration (FHA).

RMinfo.com: Please tell us about “today’s reverse mortgage”?

Jim: HECMs require no monthly payments of principal or interest.  They are the only significant type of reverse mortgage available today.

A HECM has fewer qualifications than almost any other mortgage.  Qualified borrowers must be at least 62 years old and U.S. citizens or resident aliens.  They must own a home which is their principal residence.  All persons on title must qualify and be borrowers.

HECMs do not have minimum FICO score or minimum income requirements.  This means the loan is readily available to almost all homeowners over 62 years old unless current mortgages and liens exceed the amount available under a HECM and the borrower does not have sufficient assets to pay off the difference (however, other than the HECM proceeds generally borrowed funds cannot be used for this purpose).

While monthly payments are optional, the HECM requires absolutely no monthly payments of principal or interest.  Borrowers are still required to pay all real estate taxes and homeowners’ insurance premiums as well as all required homeowners’ association dues and assessments.  Borrowers are required to keep the home in sound structural condition.

RMinfo.com: How are loan proceeds determined?

Jim: There are three factors, age, current applicable interest rates, and the appraised value of the home.  Generally the older the borrower is, the more proceeds that are available to them.  The higher interest is above 5.56%, the lower the money that is available to borrowers.  The higher the appraised value of the home is (up to a maximum of $625,500), more money is available.

On a fixed rate HECM all proceeds must be taken at the start of the loan.  Adjustable rate HECMs have other options such as a line of credit and payouts that are similar to an annuity, called tenure payments.  Unlike an annuity, tenure payments can be stopped or adjusted and will terminate at the time the loan terminates.  All payouts including the line of credit will be suspended if specific covenants are not met such as failure to complete required repairs timely (a rare situation) or if the borrower declares bankruptcy.

RMinfo.com: Please tell us about the line of credit.

Jim: The line of credit is incredible.  It can grow over time.  Although, like the growth of a savings account, the growth is not interest income and thus not taxable.  The growth is not the property of the borrower.  It simply provides more proceeds for the borrower.  The FHA insures that the line of credit will always be available to the borrower and will not be frozen except in the rare case of suspension (as previously explained).

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim: My pleasure. First off, reverse mortgages present an excellent opportunity for homeowners over 62 to stop mortgage payments, obtain cash, and improve their quality of life. They can turn a portion of home equity into cash without monthly payments of interest or principal. The popularity of reverse mortgages has risen dramatically, especially in the last 6 years. As a result, financial programs are being upgraded constantly and improved to meet the needs of those owning homes ranging in value from the very modest to those valued in the millions.

Reverse Mortgages (or HECMs) are FHA-insured. HECM stands for Home Equity Conversion Mortgage and FHA is a part of the U.S. Department of Housing and Urban Development (HUD). While payments are optional, the HECM requires absolutely no monthly payments of principal or interest. HECMs are the only significant type of reverse mortgage available today.

Reverse mortgages are available for houses, townhouses, condominiums, 1- to 4-family-unit homes, manufactured homes, and some co-ops. Borrowers are still required to pay all real estate taxes and homeowners’ insurance premiums as well as all required homeowners’ association dues and assessments. Borrowers are required to keep the home in sound structural condition.

A HECM has fewer qualifications than almost any other mortgage. Qualified borrowers must be at least 62 years old and U.S. citizens or resident aliens. They must own a home, which is their principal residence. All persons on title must qualify and be borrowers. HECMs do not have minimum FICO score or minimum income requirements. This means the loan is readily available to almost all homeowners over 62 years old.

Proceeds from a reverse mortgage must first be used to payoff debts on the home but, beyond that, uses are limited by financial circumstances and the imagination of borrowers. Remaining proceeds can be taken as upfront advances, regular or irregular payments over time, or can be held in a credit line. Under several programs, amounts available in the credit lines grow over time. Some programs will pay a specific monthly amount for as long as the participant lives in the home.

Borrowers can live in their homes as long as they want. The home must be the principal residence of at least one borrower at all times.  HECMs become due and payable if during any twelve month period, no borrower occupies the home as their principal residence.

Many people are surprised that HECMs are nonrecourse debt. This means if the value of the home is less than the amount due when it is time to pay off the loan, borrowers or heirs cannot owe more than the net sales proceeds of selling the home to an unrelated individual.  FHA pays the bank the difference between the balance due and the amount of the net sales proceeds. That is why banks are willing to make this loan; it is all but risk free.

HECM borrowers keep the title to their homes. The bank does not own the home. Children or other heirs inherit title in the home and upon the last borrower no longer occupying it as their principal residence, the loan becomes due and payable. Unlike other mortgages, where the balance due must be paid off within a short time, heirs have been granted up to a year and sometimes more to take care of the pay off.

The only time a HECM borrower or heirs are required to pay off the balance due, no matter what the value of the home is, is if they want to keep the home. In many cases this makes financial sense especially when the balance due is less than the value of the home. Other times borrowers or heirs want the home even if the required payment is greater than the appraised value of the home.  It is the choice of the borrower or the heirs.

Because borrowers or heirs own the home, if the net sales proceeds exceed the balance due, the borrower or the heirs keep that difference.  The bank does not share in any home appreciation.  They just get paid on the mortgage.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim:  Many lenders have recently announced that they are dropping monthly servicing fees on all new fixed rate HECMs.  The result is more cash upfront to borrowers.  Currently this could make a difference of about $1,000 for the oldest borrowers to about $5,400 for the youngest.  (These amounts are based on normal monthly servicing fees of $30 per month, an expected interest rate of 5.56% and the FHA Mortgage Insurance Premium, which accrues monthly at an annual rate of 0.5%.)  This change is now available for some adjustable rate HECMs as well.

Some programs are also offering lower or no origination fees which generally range from $2,500 to $6,000 depending on the value of the home.  This means more available loan proceeds and cost savings on origination fees.  The origination fee is the cost the lender charges for providing the loan.

“HECM” stands for Home Equity Conversion Mortgage, the only reverse mortgage insured by the federal government through FHA (Federal Housing Administration), part of HUD (U.S. Department of Housing and Urban Development).

RMinfo.com:  Please tell us why you are so happy about these changes?

Jim:  First, many seniors are rightfully concerned about the upfront and ongoing costs related to HECMs. We believe these changes make the HECM more attractive to many more potential borrowers.  It also means more cash proceeds.  As a result some seniors who were ineligible before because the loan had not been provided enough proceeds to pay off existing liens and mortgages may be eligible now.

On April 17, 2010 in an article titled “Reverse Mortgages Now Look Cheaper” in the Weekend Investor electronic edition, the Wall Street Journal cited Security One Lending, Inc. as a lender which by its reduced fee structured provided one senior with over $10,000 more at loan funding.  We are excited about this significant upfront cost savings and more cash proceeds to borrowers.

RMinfo.com:  When is an adjustable rate HECM better than fixed rate?

Jim:  Other than the obvious that one has a fixed interest rate throughout the term of the loan and the other has an adjusting rate, the real difference between fixed and adjustable rate HECMs is found in their cash management capabilities.

The fixed rate HECM provides all of the cash proceeds at funding.  Since fixed rate HECMs are closed end, if the borrower pays down the balance due, the borrower will find it very expensive, if not impossible to get that same cash back.

The adjustable rate is much different.  After paying off all existing liens and mortgages, it allows borrowers to take as much or as little of the net cash proceeds available as they choose.  If they want to pay down the balance due they can do that at any time and take that same amount out of the loan the very next day if they choose.  If there are no monthly servicing fees, the unused line of credit generally grows at the same rate as the interest being charged on the loan.  As a payout alternative, the tenure option pays out the same monthly amount each month over the life of the loan.

Despite lower upfront and ongoing costs, the Administration has indicated in their budget proposal that the HECM program must be restructured to offer even lower proceeds on October 1, 2010 while adding more costs.  Further the $625,500 appraised value ceiling is scheduled to return to $417,000 on December 31, 2010.  Now may be the best time to get a HECM.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim: With no legislative mandate, late September 23, 2009, the Federal Housing Administration (FHA) posted Mortgage Letter 2009-34 notifying lenders that after September 30, 2009, FHA will not insure reverse mortgages unless principal limits (PL, i.e. gross maximum loan proceeds) offered to borrowers are reduced by approximately 10% based a new PL factor table.

For example, borrowers who were offered Home Equity Conversion Mortgages (HECMs, reverse mortgages insured by FHA) before October 1, 2009, with a PL of $400,000 and approximately $376,000 in net proceeds (after all upfront costs and the servicing fee set aside but before payoff of mortgages, liens, or other distributions) can only be offered a PL of around $360,000 and net proceeds of about $336,000 after September 30, 2009.  The drop is estimated at $40,000.

What are creating the flurry are transition rules for loans in process as of September 30, 2009.  FHA stated that it will continue insuring loans that reflect PLs in effect before October 1, 2009, as long as the FHA Case Number associated with the HECM was issued before October 1, 2009.  To obtain a FHA Case Number, the lender must have received 1) a signed and dated copy of the HECM (stands for Home Equity Conversion Mortgage) loan application and 2) the certificate of completion of counseling signed and dated by both the counselor and the borrower.

RMinfo.com: Is this a permanent change in the HECM program?

Jim: No.  Depending on the actual law, the percentage could go down or go away; it is not expected to go up.  No matter what becomes law, the appropriation for the upcoming fiscal year will terminate on September 30, 2010 and the process will begin all over again next year.  It is hoped that if there is another subsidy required next fiscal year, either Congress will fund it or the PL impact can be minimized through an adjustment to FHA insurance premiums.

RMinfo.com: Could you please explain in more detail?

Jim: The budget proposed by the President showed the need to subsidize the HECM program by $798 million for the fiscal year ending September 30, 2010 based solely on HECMs expected to be endorsed in that fiscal year.  Right now the data and factors used in computing that number are being disputed; however, the resolution of that dispute will have no impact on the subsidy calculation for the current appropriations bill, H.R. 3288.

H.R. 3288 provides funding for both the Department of Transportation and HUD (the U.S. Department of Housing and Urban Development) along with smaller but related agencies.  FHA and the HECM program are both part of HUD.  The House passed its version in late July with no HECM subsidy and extends the $625,500 lending limit from December 31, 2009 to September 30, 2010.  The Senate passed its version in September with a partial subsidy, no extension of the higher lending limits, and a required 5% reduction to PLs.  It is believed the House version will result in a 10% reduction to PLs.  For now HUD is following the House version.
The Congressional Conference Committee (CCC) should create a new bill before November 1, 2009.  In between a continuing resolution is expected to be passed that will provide temporary funding for HUD and the HECM program until the CCC presents its bill for passage by both chambers of Congress.  If the law permits higher PLs, HUD will probably allow higher PLs to be reflected in all new loans and also allow borrowers with HECMs in process to elect the higher proceeds as long as they have not signed final loan documents; however, no one is speculating how long after passage it will be before HUD permits either action although both should go into effect within days after the President signs the bill into law.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim: With nonrecourse loans, the borrower usually secures the amount due with specifically named property. If the borrower fails to repay the debt, the only thing that the lender can obtain from the borrower to satisfy the amount due is the property that secured that loan.

An FHA insured reverse mortgage, known as a Home Equity Conversion Mortgage (HECM), is nonrecourse. With HECMs, the only thing that secures the mortgage is the home. The most a borrower can owe on a HECM is the lower of the amount due, or the net proceeds that would come from the sale of the home in an arm’s length transaction.

The FHA, which is a part of the U.S. Department of Housing and Urban Development (HUD) also requires the homeowner or heirs to pay the amount due in full if they want to keep the home. On recourse loans, the lender can not only obtain any property that secures the loan, but if the loan is still not paid in full, the lender can also obtain a deficiency judgment allowing collection of the remaining amount due in any legal manner. HECMs are nonrecourse, meaning the lender cannot obtain a deficiency judgment against either the borrower or the heirs so the only property that would be at risk is the home.

RMinfo.com: Can a borrower get rid of recourse debt using a HECM?

Jim: Absolutely. The proceeds of a HECM must be used first to pay off any mortgages and liens against the home, but any remaining proceeds can be used for any other purpose the borrower chooses. Paying down or paying off recourse loans can be a very good use of HECM proceeds. To the extent that a recourse debt is paid off by the proceeds of a HECM, the amount paid is changed from recourse to nonrecourse. This can be a very important financial decision in avoiding financial difficulties.

RMinfo.com: Also, many baby boomers have their own business. Can this help them?

Jim: To be eligible for a HECM, the borrower must be at least 62 years old. Because of the recent financial crisis, many people have postponed retirement. Some who are in business for themselves have business debt. Generally business debt is recourse and usually the business owner is the borrower or guarantor. Practically, that means not only are the business assets at risk, but so are all personal assets such as the home. By using HECM proceeds to operate the business, the owner is not only limiting risk to the home but all required periodic payments of interest and principal are eliminated. Normally the owner is spending money and time to satisfy the requirements of business lenders such as providing accountant review or audit reports, applications, etc. annually. Once in place, a HECM eliminates all of this time, hassle, and administrative cost. If the HECM line of credit is selected, the owner can pay down the HECM and borrow as needed. While business credit is tight and demands are increasing even on Small Business Administration (SBA) loans, a HECM can provide peace of mind and in many cases cost savings.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.

Jim: A HECM does not become due and payable until the earliest of 1) the home is sold, 2) no borrower lives in the home as a principal residence, 2) all borrowers pass away, 3) the sole surviving borrower is out of the home for more than a year for physical or mental illness, or 4) a default occurs because of failure to pay real estate taxes, keep the home in proper repair, or abide by other loan covenants.  There is no prepayment penalty for paying off a HECM before it is due and payable or for paying off a portion of the balance due at any time.

When the home passes to heirs (and upon request), heirs will have an automatic six month period to replace the HECM with a new loan, pay off the HECM from personal funds, or sell the home.  If requested in writing, an additional 3 months will be granted.  If the loan is not paid off by the end of a total of nine months, but the heirs can prove they are working toward the payoff of the HECM or sale of the home, an additional 3 months can be granted (for a total of 12 months following the death of the last surviving borrower).  The bank does not want to own the borrower’s home; they merely want the loan paid off according to its terms.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.