Steps, Takeaways to Help Plan for the Unknown

by Brian Vaughn

McCalla RaymerLeibert Pierce, LLC*

USFN Member (AL, CA, CT, FL, GA, IL, KY, MS, NV, NJ, NY, OH, OR, TX, WA)

One thing the pandemic brought to light for me, and my husband, was the unknown of the future. I don’t mean reading the tea leaves or anything like that. As the only two in both of our families who could work remotely, we became the primary caregivers for our mothers, literally overnight. Both our mothers have underlying health issues, requiring us to be very cautious. This led to a bigger question, what do we do to prepare for our own future? With no kids of our own, who will be there to take care of us in our Golden Years?

This sparked a series of conversations with friends in similar circumstances, specifically those in the LGBTQ+ community, and the topic took on a life of its own. We have friends that are single with no family left, friends that have young children with special needs, and some friends who haven’t even stopped to evaluate their current situation. Either way, these discussions led to some detailed research, and hopefully, our findings can help others facing comparable challenges.

So, you have no kids to put you in the nursing home? This covers a lot of my friends, not just those in the LGBTQ+ arena, but many that simply chose not to have children. My gay friends came up with the idea of investing in a LGBTQ+ nursing home, think “Golden Girls” merged with a cruise ship feel. Sounds fun, but probably not practical. For us personally, we made the decision not to have kids because of the cost of surrogacy, and we felt our work travel schedules at the time were not conducive to raising a kid. The truth is that many barriers stood in our way. The legal and political landscape of the time didn’t support same-sex marriage, same-sex adoption, or foster care. Cost for surrogacy, adoption, and IVF treatments are outrageous for anyone, not just those in the LGBTQ+ community. Like many, both gay or straight, we made the decision at the time that was right for us.

So, here are some thoughts. First, save, save, save. If you don’t have a 401K, get one. If you can qualify for an IRA or Roth IRA, do it. If you are about to turn 50, like me, make sure you take advantage of the catch-up option in your 401K. If your company offers a Health Saving Account, use it. If you are one of the millions of Americans who live paycheck to paycheck, or are in a heap of credit card debt, work with a financial advisor or community organization to create a budget. The rule is always to pay yourself first.  Working in the financial services market, it is important to focus on the financial stability of our futures. There are many resources provided by banks, financial institutions, and community organizations, and many are even free. Software for personal finance and budgeting, such as NerdWallet, Quicken, Mint, GnuCash, AceMoney Lite, Personal Capital, and Buddi, are just a few options to consider as well.

Second, investigate long-term care insurance. This option can be costly, depending on when you start the process, and costs can vary depending on possible health screening. Ask your HR group if your company benefits include access to any insurance brokers. Many providers offer some form of cash benefit to be paid out to a beneficiary upon death, or even a cash out option, but the cash out options can have a hefty penalty. These policies help cover costs for assisted living and health benefits that are usually very high as you age. Currently, assisted living or memory care in the Dallas-Fort Worth area, for example, can run between $4,000 – $6,000/month. Some retirement communities offer a buy-in based on your financial situation, like buying a home to get into the community; but many are arranged to accommodate you as your health care needs change, starting with independent living, then assisted, nursing, and hospice care.

If you are one of the 20.9 million families with members who have disabilities or special needs, you are aware of the challenges ahead - like costs to prepare for the future if something were to happen to you. It is always key to talk to family about the unknown. Work with an attorney to prepare a will or trust and make each member of the family aware of your wishes. For those in a relationship but not married, you should ensure you have forms for domestic partnership, HIPPAA, hospital visitations, and beneficiary choices. Again, focus on financial security. Talk to other family members about their roles in care giving for your loved ones. Be prepared by looking for appropriate facilities near the family, even if it is only to gather information about costs and services offered.

Most importantly, and this goes for any situation, have a path forward. There is less burden on your family when they know your wishes, where to find your documentation, and have a map to follow. If you don’t have a will on the back of a bar napkin or tattooed on your arm, please prepare one. Many of the firms in our space have access to someone who can help if you prefer to have a live attorney guide you. It can cost anywhere from $100-$1,000 for the basics. This could also become a new benefit that your company offers its employees. If cost is a concern, using free sites, which is always an option and will guide you through the process.

I must leave you with a funny story. We were on a cruise, and the captain told us about a woman who lived on the ships, having traveled with the cruise line for years. The woman would sail from one port to another, and then switch ships for the next cruise. When questioned, she told the captain, “Why would I not? I have the best views each day, the best selection and variety of foods, a 24-hour doctor and health care, and I get to meet new people every day. It is also cheaper than my past house payments.”  Needless to say, this woman is my hero!!

So, what is your takeaway from this rant? Be prepared. Save, save, save. Talk to your person or persons.  None of us know what the future holds or how much time we have. Do not wait, start today.

Copyright @2023

USFN e-Update - February 2023

By Brian Vaughn

McCalla RaymerLeibert Pierce, LLC*

USFN Member (AL, CA, CT, FL, GA, IL, KY, MS, NV, NJ, NY, OH, OR, TX WA)

Diversity, Equity, and Inclusion (DEI) is top of mind for most people these days.  We see and hear about the importance of DEI in the news, social media, and at conferences. Starting a meaningful conversation about DEI for many companies may seem daunting or the timing may seem like climbing a mountain during the greatest pandemic in our lifetimes. Honestly, the time is past due and the pandemic, in a way, has offered us an opportunity as many companies are having to rebuild their teams.

A tougher question may be: Are our current standards on Minority and Women Owned Business (MWOB) outdated?  Are we acknowledging those that have moved past the standard goal of what was originally intended with MWOB?  We push our companies to a broader image of what diversity is from an overall staffing level; should we be doing the same for our companies’ ownership? We could start by increasing each type of minority owner, rather than trying to achieve the goal of fitting into the small box by simply achieving a particular status of women-owned, or veteran-owned, or African American-owned business, for example, as set forth by the government. While there are certifications that seek to allow for an expanded definition of “minority-owned” to be more inclusive, rather than exclusive (for example, Chicago’s Minority and Women-Owned Business Certification Program, which certifies firms who have 51% ownership by a minority OR a woman), the federal classifications do require your firm to fit into one specific area to obtain certification.

DEI has evolved to expand inclusion and suggested staffing models that reflect our society.  We strive to create an encompassing group of people to bring in all visions and ideals to better our organizations.  We look to have a well-rounded team from a spectrum of all genders, races, ethnicities, ages, religions, disabilities, and sexual orientations; yet when it comes to our ownership, we only recognize those that are owned by at least 51% of one diverse group.  Is it time for our acknowledgement of ownership that surpasses the standard model to be our new goal?

Let’s review a couple of examples. An organization’s ownership is made up of 40% women, 15% minority, 25% LGBTQ and 20% other non-women or non-minority. This makeup is 75% diverse, yet according to our current standards, we do not acknowledge this organization for reaching what we hope our DEI goals aim to achieve.  Another organization’s ownership is split evenly by four owners into 25% portions.  The diversity makeup of the ownership is African American, Latinx, Women and LGBTQ, making this 100% diverse ownership.  For these suggested organizations to meet the 51% current standards, the ownership would have to reduce its diversity to only allow one diverse segment the majority ownership.  So, in effect, this dilutes their ownership’s diversity, moving us away from a true goal of any DEI ownership program.

While many still fall short of the basic 51% standard, is it time to expand our understanding of diversity in ownership to better match our overall DEI goals?   For decades, since its inception, the 51% rule has been the line in the sand for DEI ownership, but government and corporations are looking to suppliers that more closely match their overall diversity goals.

Expanding the standards to include organizations with ownership that meet a higher level of combined women and minority threshold is key to moving all DEI initiatives forward. This doesn’t mean removing the current standard of 51%, but rather adding expanded options for firms that meet a 70% or higher combined women and minority ownership.

Copyright @2022

USFN August e-Update

USFN’s Diversity, Equity, and Inclusion Section periodically spotlights professionals promoting DEI and enacting education initiatives within the industry. Janice Nakano, Director of Client Relations and Business Development for Aldridge Pite, LLP, describes how she champions diversity and draws from her personal experiences to better understand and learn from others. Learn more about Janice and her efforts and discover small ways you can support DEI in your own work/life.

How would you describe your current thinking about diversity, and how has your thinking changed over time?

As an older adult, I’m more educated about what diversity means and how differences can and should be used to create a rounded perspective and understanding of different people, cultures, and identities. Traveling to foreign countries has certainly opened my mind to the fact that even though we may be from different backgrounds and cultures, we are all striving to have the basics: a roof over our head, a job, a family, friends, and a social existence. Before my foreign travels, I was definitely more self-centric (aren’t we all when we’re teenagers and in our 20s)?

Can you share some examples of how you championed diversity?

Participation: I have always been supportive of diverse communities. Since the late 1970’s, I have supported the LGBTQIA+ community in any way that I can by participating in parades, charities, galas, and events. I have to thank my two best friends growing up for enabling me to be a part of this community.

Support: Supporting women is also something I’ve felt a natural affinity with. I have mentored several young women who have grown into incredible professionals in their careers and continue to do so. I’ve worked with organizations that help women in various manners. Dress for Success is one of those organizations that give women the power to achieve economic independence by giving them tools, aka business outfits and self-care packages. The Mom Project and Path Forward are two organizations that I am just becoming familiar with. These companies help women who want to return to the workforce by equipping them with the tools they need, job prospects, and a community to support them.

Education: Currently, I’m educating myself in racial equality and the history of racism. Two books that stand out are, “How to Be an Antiracist” by Ibram X. Kendi, and “The 1921 Tulsa Race Massacre: A Photographic History” by Karlos K. Hill.

How would you serve diverse groups or traditionally underserved communities?

I live in New York City, which is filled with cultural, racial, socio-economic, and religious diversity to say the least. I try to buy groceries, clothing, and other necessities from my local shops or go to specific neighborhoods where I can find ethnic items.

What challenges do you think you will face working with a diverse population?

I like to think that I can communicate with any community. Language can be a challenge, but having lived in France before I could speak the language has taught me patience and understanding when communicating with a non-English speaker, or someone with very little English or a strong accent.

Growing up in a Buddhist household, when all my friends came from other different religious backgrounds, helped me to understand that we may have different faiths, but on a fundamental level, we are all taught to be kind, love thy neighbor, and be honest and caring.

Describe your ideal corporate approach to diversity, equity, and inclusion. What obstacles do you see in implementing the ideal approach?

Firstly, create a group or committee, state the group’s mission, create goals, and implement a path to achieving goals. Obstacles: making sure this does not become a group that is used to solely voice complaints.

How do you measure success in diversity, equity, and inclusion?

In business, through reporting and analytics, we can look at performance, pay equity, talent recruitment, and retention. Focus on measuring influence and power (people), rather than representation (numbers).

What positive outcomes do you think you will encounter by working with a diverse population?

Different perspectives offer a well-rounded understanding of a situation/topic/task. Learning about other cultures helps me to understand about others’ choices and decisions.

How would you advocate for diversity education and diversity initiatives with individuals who don’t see its value?

The best way to convince others to see the value in DEI, is to educate through discussions, suggested readings, providing information on events, and how to participate in DEI activities.

How would you handle a situation in which someone made a sexist, racist, homophobic, or otherwise prejudiced remark in a professional setting? In a social setting?

In both professional and social settings, I would let people know immediately that the behavior/comment is not acceptable. I have absolutely no problem confronting the person in a respectful and non-aggressive way.

How has your education/work experience prepared you for working with a diverse population?

As a chef in California, many of my co-workers were Mexican. In Europe, many of the support kitchen staff were from Africa. In both cases, these groups were, at the time, considered sub-standard groups.

Being a part of a DEI group has definitely expanded my knowledge and given me more tools for working and living with a diverse population.

Has your background prepared you to be effective in an environment that values diversity?

Growing up in a traditionally Japanese American household, but in a predominantly Caucasian

neighborhood, I always thought of myself as different. My family was the only Japanese family in our neighborhood and there was only one other Asian student with me kindergarten through sixth grade. My appearance has always been mistaken for either Latin American, an Islander, or Caucasian. I’m certain the inability for people to put me into a specific category enabled me to be part of every category in a sense, but at the same time, I wanted to be like “all the other girls” and identify as Caucasian. As I’ve grown older, I’ve embraced my diversity even more. Living in New York City has also allowed me to be part of and value the many cultures that exist.

Are you actively engaged in a group or organization that promotes diversity?

Yes, I am Vice Chair on the Diversity, Equity & Inclusion Committee with USFN.

What is the most challenging situation dealing with diversity that you have faced and how did you handle it?

I remember one time when a teenage girl was slinging offensive comments to a much older man, complaining how long it took for him to unload his groceries from a shopping cart. I turned to this girl and told her that she should have more respect for the elderly, and how would she feel if someone spoke to her grandparents like that. Her response was “whatever.” I honestly don’t think she got it. I’m a firm believer that karma will handle people and their actions.

Have you ever realized that you said or did something that may have been offensive to a colleague/co-worker/friend? How did you respond to that realization, and what was the outcome?

I remember telling a joke once to a friend, only to realize later just how offensive it was. My friend didn’t say anything at the time, but later, I did bring it up and apologized for being so disrespectful and insensitive. As I’ve grown older, I realize the impact words have and how important it is to think about what you say and how you say it.

How would you ensure that you are inclusive of everyone’s viewpoints and what is your approach to understanding different cultural viewpoints?

I believe asking questions is a big part of communication and learning. I’m interested in hearing about what other people think, even when they have very different viewpoints and perspectives than I do.

How do you go about ensuring that you are removing bias from your day-to-day work/life?

I am a work in progress. Confirmation bias is something I am trying to change in myself by reading and listening to different opinions and points of views. I still find myself using gender-specific language such as ‘guys,’ ‘dudes,’ “hey man,’ and similar terms when speaking with other women, or a group that includes women. I’m working on being consciously aware of what I’m saying and who I’m saying it to.

@Copyright 2022

June 2022 USFN e-Update

By Victor Kang, Esq.

Rubin Lublin, LLC *

USFN Member (AL, GA, MS, TN)

Often, one of the roadblocks that faces any new change is the retort of “If it ain’t broke, don’t fix it.”

As part of creating a more inclusive and accepting culture in our industry, one of the pain points of a seemingly harmless and simple adjustment is using more inclusive pronouns. While some might roll their eyes at the prospect of having to use “new” pronouns like they/them, the unexpected benefit of this transition is that documents and templates can actually be easier to produce. As our industry moves toward a sense of normalcy, one of the most common issues we have seen involves the need to process increased volume timely and uniformly. Most firms, servicers, and vendors all now rely on fully integrating communication, document requests, and processing of files.

The days of paralegals and attorneys having a mishmash of legal templates are quickly joining the ranks of Dictaphones and typewriters as being obsolete in this new reality of instant uploads and drafting of documents. Below are some practical suggestions on how to modernize legal documents that serve to create efficiencies, reduce errors, and establish more inclusive language.

As legal definitions of marriage change and evolve, along with gender identity, we have seen the loan application process evolve in tandem. Forms are now becoming gender neutral. We recommend that lenders who use their own proprietary application forms adopt the Uniform Residential Loan Application that is used by GSEs. These forms avoid fields focused on gender or marital status, such as a prefix (Mr., Ms., Misses, etc.) or terminology like husband and wife. Alternatively, if forms require some type of honorific, you can use a more inclusive term, like “Mx.”

Newer systems often have updated fields that account for gender-neutral terms. We recommend reviewing older systems to avoid creating inefficiencies or additional guesswork by requiring fields like “husband” or “wife” to be completed. If state laws require marital status, these fields can be updated to say “spouse/partner.”

The biggest potential area for improvement and time savings can be realized by removing the need to use gender-specific terms in your templates. For example, the state of Alabama requires the marital status to be listed on mortgages and deeds of transfer. In the past, this may have been viewed as a very simple process – you’re either married or single, and the legally accepted categories were just husband and wife. Mortgages will often be written out to say “John Doe, a married man, and Jane Doe, a married woman” or some iteration of “John Doe and Jane Doe, husband and wife.” However, our firm has had to file title claims on mortgages where the language was incorrect because names might have been gender neutral (i.e. Billy Smith and Taylor Smith), and the husband and wife titles were swapped. Or, in cases where names are based on other languages/cultures, it may not be abundantly clear which name is meant to be for which party. Further, many spouses may choose not to take their partner’s name or come up with a new last name altogether. In another instance, we had a foreclosure file rejected in the REO stage because the mortgage had listed “X and X, husband and husband.” The closing attorney said there was a typo on our foreclosure deed; needless to say, we had to inform them that there was no error.

To avoid these issues, we suggest modifying pre-filled templates for pleadings, deeds, letters, etc.… with “Mr./Mrs.” or him/her, replacing that language with pronouns such as they/them and dropping salutations altogether. Start letters off with the name of the borrower, and you can avoid having to guess at what greeting to use. On deeds where you must convey to the Secretary of HUD or VA, update templates to state that “they” are the Secretary, and that title is being conveyed to “them.” Not only does it avoid having to switch your template from stating “him” to “her,” depending on who the active Secretary is, using them/they can avoid any need to update. This change in standard can also help post-foreclosure cleaning houses from having to nitpick as to what a recorded deed’s language states.

Even in documents that must be filed where you may have to name unknown parties, you can avoid using Jane or John Doe by simply using “Person Doe” as a substitute. Changing the terminology to be gender neutral can also avoid uncomfortable missteps when you address the parties in court. For the litigators, it might require a change in terminology to say “folks” or “jurors,” instead of saying “ladies and gentlemen of the jury.” As juries are to be made up of members of the community, appropriate terminology for their identity is not only the right thing to do, but it could also help sway their opinions if you address them with respect and acceptance. And, while it may seem uncouth in certain parts of the country to not end sentences with “sir” or “ma’am” when attempting to show respect, this may be a situation where the “Golden Rule” might not apply. While you personally may want to feel respected by being addressed as “sir” or “ma’am,” this opinion may not be the same for others in the courtroom or in the deposition room. If you genuinely want to respect those with different backgrounds, be cautious about forcing your viewpoint of what being respectful means onto others.

               As with any change, it will take time and repetition to overcome years of custom. But, even if there may be disagreement over the reason why these changes are necessary, there can be little argument that we can avert inefficiencies and unintended grievances by avoiding the use of antiquated terminology. In this post-COVID world where remote work, virtual closings, diverse global clientele, and automated referrals are the new norm, having to guess at the appropriate terminology based on voices, appearances, or names is neither effective nor respectful.

From a business perspective, countless hours of document revisions, apologies for unintended misnomers, and potentially lost customers can result from trying to box people into gender-specific terms. If we move toward using gender-neutral terminology, we all can benefit from the continued evolution of the English language.

@Copyright 2022

USFN Report - Spring 2022