earnings

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Mortgage tech firm Blend Labs continued to narrow its financial losses in the third quarter, driven by strong growth in its consumer banking business.

Its mortgage business outperformed the broader origination market and the company reduced cash burn, putting the firm on track to its goal of reaching non-GAAP profitability by next year.

The San Francisco-based company reported a non-GAAP net loss of $21.4 million in the third quarter, compared to a non-GAAP net loss of $22.7 million in Q2 and a non-GAAP net loss of $42.8 million year over year.

The company’s GAAP net loss in Q3 was $41.8 million, slightly up from a GAAP net loss of $41.5 million in the previous quarter, according to its 8-K filing with the Securities and Exchange Commission (SEC). 

“Our third quarter results represent execution on both our revenue and operating loss targets for the third consecutive quarter. We are more focused than ever on delivering for our customers in a way that aligns with our long-term vision, and we believe we are in a strong position to continue our pace of innovation with speed, scale, and efficiency,” said Nima Ghamsari, head of Blend. 

The company posted $40.6 million in revenues in Q3, within the range of $40 million to $42 million provided during its investor day in September.

Revenue consisted of platform revenue of $28.6 million and title revenue of $11.9 million.

Blend’s platform segment includes the mortgage suite, consumer banking suite and professional services. 

The mortgage banking suite revenue declined by 11% year over year to $20.3 million despite a 14% mortgage volume drop over the same period as reported by the Mortgage Bankers Association (MBA). 

To offer competitive price points for cost-conscious independent mortgage banks, Blend launched Blend IMB Essentials, a lower-cost edition of its mortgage suite that combines all the critical benefits of Blend, Ghamsari noted.

The mortgage tech firm continued to invest in add-on products for lenders in the third quarter, a strategy to “ensure success of existing customers because those customers end up becoming the reference for other banks and lenders to sign up with Blend,” Ghamsari told analysts.

Blend’s new product and services included an AI-powered chat tool ‘Copilot’ aimed at executing precise tasks and deconstructing nuanced questions borrowers have.

As a result, growing usage of add-on products drove Blend’s mortgage suite economic value per funded loan to $86 in the third quarter, up from $77 in Q3 2022.

Consumer banking suite revenue rose in Q3 by 18% over a year ago to $6.2 million. Professional services revenue increased by 18% to $2.1 million during the same period.

“This is quickly becoming the biggest revenue opportunity for us next year,” Ghamsari emphasized.

“As we convert more and more of our customers to Blend Builder, they’re well positioned with our technology to grow their business and their deposit bases, increasing revenue and profitability as a result, which is so important to us to be able to support that kind of success,” he added.

On track to profitability in 2024

On the expenses side, non-GAAP operating costs in Q3 totaled $38.2 million compared to $58.7 million in the same period the year prior.

“The improvement in our non-GAAP operating loss met our expectations benefiting from resilient revenue in our mortgage business, sustained higher margins and the adoption of greater financial leverage through continued improvement and our operating efficiency,” Amir Jafari, Blend’s head of finance and administration, told analysts.

The third quarter marked another period of improvement in the firm’s cash burn of $25.9 million, which was about half of the $50.9 million cash burn the same quarter in 2022.

“Our actions to operate with efficiency in combination with our resilient top line and improved margins are having a real impact as we inflect towards positive cash generation,” Jafari said.

Executives had set a goal of achieving positive cash flow by 2026 in its investor day in September. 

​​As of Sept. 30, Blend has cash, cash equivalents and marketable securities, including restricted cash, totaling $252.3 million. The company has a total debt outstanding of $225 million in the form of the company’s five-year term loan. 

Looking ahead, the mortgage tech firm estimates decreased non-GAAP net operating loss between $17 million and $14 million in Q4. 

“While the market conditions are sending signs the industry volumes may remain lower in the short term, we are confident our strategy is well suited for the current environment, and will make us well positioned for when the industry conditions ultimately normalize,” Ghamsari said. 

Source: housingwire.com

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loanDepot, the California-based lender targeting profitability next year, delivered its sixth consecutive quarterly loss in the third quarter of 2023, according to documents filed with the Securities and Exchange Commission (SEC) on Tuesday. 

Total revenue declined as a result of lower origination volume. Still, there were financial improvements. Higher margins aided by an aggressive cost-cutting strategy shrunk expenses, narrowing loanDepot’s losses in the period. And more cost reductions are expected in the coming quarters.

The lender recorded a loss of $26.8 million in non-GAAP adjusted net income from July to September, compared to a $34.3 million loss in the previous quarter. By GAAP accounting standards, net loss in the third quarter was $34.2 million.  

In a recent interview with HousingWire, CEO Frank Martell said the most likely period for a trajectory to profitability “is the spring selling season, as we get into next year and the market provides some lift. Right now, it’s ultra-low.”

To analysts, Martell confirmed profitability is expected as we get “into the second and third quarters of next year.”

The company’s total revenues decreased to $265.7 million in the third quarter, down from $271.8 million in the previous quarter. loanDepot had “lower pull through weighted lock volume partially offset by higher pull through weighted gain-on-sale margin.” 

Meanwhile, total expenses decreased faster than revenues to $305.1 million in Q3, down from $330.1 million in Q2. Quarterly non-volume expenses decreased $18.7 million since the second quarter due to lower salaries and benefits resulting from reduced headcount and legal expenses. Headcount declined to 4,532 in Q3 from 4,683 in Q2.

In the quarter, the company also accrued $2 million of legal expenses related to the expected settlement of outstanding litigation. In August, the company agreed to settle a securities class action lawsuit for $3.2 million. 

“We continue to aggressively reset our cost structure to address the impact of generationally low unit volumes as we maintain our focused execution of Vision 2025,” Martell said in a statement. 

loanDepot also announced a $120 million annualized cost reduction target, including $100 million in non-volume related expenses – for example, vendor contract termination and renegotiation, optimized marketing spending and corporate real estate cost reductions. The company expects to achieve most of the savings by the end of Q1 2024.

loanDepot’s loan origination volume came in at $6.1 billion in the third quarter, down from $6.2 billion in the second quarter of 2023. The pull-through gain-on-sale margin was 2.93% in the third quarter, better than the 2.85% registered in the previous quarter.

Regarding its products, purchase loans comprised 71% of the total, down from 73% in the previous quarter. loanDepot recently rolled out a new down payment assistance program for Federal Housing Administration loan borrowers that enables them to put zero money down upfront. 

Company executives project the fourth quarter volume between $4 billion and $6 billion. The pull-through gain-on-sale margin is expected to be between 2.40% and 2.80%.

Servicing 

loanDepot’s unpaid principal balance increased to $143.9 billion as of Sept. 30, 2023, from $142.5 billion as of June 30, 2023. Servicing fee income rose to $118.7 million in Q3 2023 from $117.7 million in the previous quarter.

CFO David Hayes said that in the quarter, the company sold excess agency mortgage servicing rights related to unpaid principal balances totaling $12 billion, resulting in a gain of $4 million.

“This transaction allows us to monetize a portion of the asset while maintaining our direct servicing relationship with those customers,” Hayes said.

The lender said it had $717 million in cash at the end of September, down from the previous quarter’s $719 million. 

Hayes said in a statement the company’s liquidity is due to cost reduction, margin expansion and effective capital management, which made the company end the quarter with “essentially unchanged” cash balances. 

“We remain laser-focused on maintaining significant levels of liquidity as we work toward run-rate profitability,” Hayes said. 

loanDepot is looking for acquisition opportunities. In September, the company appointed Dan Hanson to the newly-created role of executive director of enterprise partnerships and acquisitions as the company seeks to invest in profitable growth-generating initiatives. 

Looking forward, Martell said the market will remain substantially similar to 2023 levels in 2024. “We believe that the factors that have impacted the industry in 2023, including lack of housing stock for sale as well as record low affordability, will be with us during 2024,” Martell told analysts.

Jeff Walsh, loanDepot’s president, said that the market correction at this point is “still greater than the capacity reduction.” It means that with the “rates being higher-for-longer scenario, you likely need a bit more capacity reduction” in the mortgage industry.

Source: housingwire.com

Apache is functioning normally

Severance pay is a lump sum that an employer might offer to employees who are terminated from their jobs, which may be due to a layoff or by being fired.

In exchange for severance pay, an employee typically has to agree to waive their right to sue their employer for wrongful termination, discrimination or other employment-related claims.

The amount of severance pay an employee is offered varies by person and employer, and it’s often just one part of a larger severance package. Here’s a deeper look at what severance pay is and how it works.

Are employers required to pay severance?

Employers in the U.S. aren’t required to pay severance. There aren’t any federal laws guaranteeing that employees will be offered additional pay or benefits when they suddenly lose their jobs.

Exceptions exist where employment contracts, such as a bargaining agreement between an employer and a union, are in place, says Denise Clark, an employment and employee benefits attorney who founded Clark Law Group in Washington D.C. Those contracts can include provisions requiring the employer to pay severance to terminated employees.

Who gets severance pay?

Some companies offer severance only to workers with certain types of jobs or levels of responsibility in the company or who have been employed a certain number of years. Generally, people ranked higher in a company’s hierarchy are more likely to be offered severance, according to the 2021 Guide to Severance and Workforce Transition survey conducted by Randstad RiseSmart, a careers development services company.

But the survey found that severance may be becoming more common. A growing share of companies included in the report — 64% in 2021 compared to 44% in 2019 — offer severance to all employees, regardless of how many years they’ve been on the job and their role in the company.

Do you get severance if you’re fired?

If you’re fired, you could still be offered severance pay. Under those circumstances, the employer still wants assurances the employee that’s leaving won’t come back with a lawsuit, Clark says.

However, if you’re fired for another, more serious reason, “the offer of severance is unlikely,” Clark says. She listed absenteeism and failing a drug test among the discipline issues that could prevent someone who is fired from being offered severance.

The Randstad RiseSmart survey indicated receiving severance when you’re fired could be more rare. About a third (31%) of human resource professionals included in the Randstad RiseSmart survey said severance pay is offered to someone who is fired because of poor performance.

What’s included in a severance package

The Randstad RiseSmart survey found benefits in a severance package most commonly include:

  • A cash payout.

  • Bonuses that the employee was previously eligible for.

  • Outplacement services.

Outplacement services are meant to help laid off or terminated employees get a new job by helping them craft resumes and cover letters, look for jobs and prepare for interviews.

A severance package should go above and beyond any benefits you’re entitled to any time you leave your job. For example, some states require employers to payout unused vacation time.

Additionally, employees who were covered by their employer’s group insurance are eligible for COBRA when they resign or are terminated.

How much is severance pay?

Most employers offer severance pay that equals between one and six months’ salary, according to the Randstad RiseSmart survey. The amount can vary between individuals at the same company, depending on how severance pay is calculated.

How is severance pay calculated?

Typically, severance pay is calculated based on the employee’s current salary and the number of years they’ve worked at the organization, according to the Randstad RiseSmart survey.

Here’s an example: Let’s say a company offers one week of pay at the employee’s basic salary rate for each year they’ve worked for the company.

An employee who has been with the company for five years would be offered severance pay totaling five weeks of earnings — or a little more than a month’s pay. So, if they earn $2,000 per week (which is an annual salary of about $104,000), they would be offered $10,000 in severance pay.

Though it’s less common, some companies base severance pay on a person’s earnings or tenure alone. Here’s how that severance would be calculated.

Earnings only: Returning to the example above, let’s say the company offers three months (about 13 weeks) of pay to all employees who are let go during a layoff. The employee earning $2,000 per week would be offered $26,000 in severance pay.

Tenure only: Rather than referencing an individual workers’ salary to calculate severance pay, a company could decide to pay a fixed amount to its workers based on years of service, such as $15,000 to anyone who has worked at the company for two to seven years.

Can you negotiate severance?

Clark says some companies will follow a “take it or leave it” approach to severance and won’t negotiate the terms. But others will be more open.

“Not every employer will necessarily know what employee might walk out the door and file a lawsuit,” Clark says.

That means an employer that’s motivated to ensure a departing employee won’t bring a lawsuit against the company could be open to increasing the payout as the employee exits.

Source: nerdwallet.com

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Intercontinental Exchange (ICE) Mortgage Technology reported an adjusted operating income of $131 million in the third quarter of 2023, up from Q3 2022’s $126 million — despite the headwinds the mortgage industry is facing.

ICE attributed “an analog to digital conversion occurring in the U.S. residential mortgage industry” for its mortgage business outperforming in Q3 even as the industry experienced a nearly 20% decline in origination volumes. 

Strong sales in its Encompass loan origination system, as well as its mortgage servicing platform (MSP) solutions business, drove an improved adjusted operating income for the mortgage technology division at ICE.

In Q3, about 60% of existing Encompass customers that were due for a renewal increased their base subscriptions. ICE expects to have its second-best year for MSP sales since 2017.

“Through October, we have already surpassed our prior full year record for new Encompass sales, which was set in 2020. In our servicing solutions business, the closing of the Black Knight transaction has unlocked the pipeline with four new MSP customers signed in October alone,” Warren Gardiner, chief financial officer of ICE, told analysts in its Q3 earnings call. 

Since ICE completed its acquisition of Black Knight in September, M&T Bank has become a new customer of Encompass, replacing its existing loan origination platform and adding ICE’s data and document automation platform.

ICE also cross-sold MSP and several data and analytics products to Fifth Third Bank, an existing customer of ICE, Ben Jackson, president of ICE and chair of ICE Mortgage Technology, noted.

ICE said it doesn’t anticipate any negative impact to its Encompass business from the recent commission lawsuits if homebuyers use fewer real estate agents which, in turn, could result in loan officers losing their largest referral pipeline.

“We don’t have a business of selling leads to real estate brokers and the like. For us, our core businesses are all in and around the origination transaction itself,” Jackson told analysts. 

“If anything, all of the data and analytics offerings that we have that underpin this overall platform, front to back both between ICE Mortgage Technology assets that we’ve had historically, as well as the data assets that have come with the Black Knight business, all position us very well in that space going forward,” Jackson added. 

The mortgage technology division at ICE posted $330 million in total revenue in the third quarter, up about 19.6% from Q3 2022’s $276 million. 

Adjusted operating expenses posted $199 million in Q3 2023, up about 32.7% from $150 million in the same period a year ago.

Looking ahead to Q4 2023, ICE expects near-term cyclical headwinds in the mortgage industry to persist. 

“Coupled with typical seasonal pressures on origination volumes in the first and fourth quarters of each year, we expect the total fourth quarter ICE Mortgage Technology (IMT) revenues will be in the range of $490 million to $500 million, bringing full year pro forma IMT revenues to approximately $2.06 billion,” Gardiner said. 

Source: housingwire.com

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Texas-headquartered lender and servicer Mr. Cooper pointed to a cybersecurity incident that forced the company to lock down certain technology systems including access to its online payment portal. 

“On October 31, Mr. Cooper became the target of a cyber security incident and took immediate steps to lock down our systems in order to keep your data safe. Our systems remain locked down and we are working on a resolution as quickly as possible,” the company said in a statement on its website.

Mr. Cooper’s 8-K filing with the U.S. Securities and Exchange Commission (SEC) states that the company experienced a cybersecurity incident where an “unauthorized third party gained access to certain technology systems.”

The company does not believe this incident will have a material adverse effect on its business, operations or financial results.

Investigation is underway to determine if any data was compromised, notify impacted customers and provide identity protection services.

While the system is down, the company won’t be able to process customers’ payments and customers will not incur any fees, penalties or negative credit reporting related to late payments as they work to fix this issue, according to Mr. Cooper’s website.

The company didn’t respond to requests to comment on the ongoing investigation and when its systems will open. The company’s website still displayed a message on Nov. 3 from the day before that its systems remain locked down.

Mr. Cooper reported $275 million in net income in Q3, up from $142 million in Q2 and $113 million in Q3 2022. 

The strong performance of Mr. Cooper’s servicing portfolio led to the improvement in its profitability, the firm said in its latest earnings call. 

Mr. Cooper, as with most of the lenders in the industry, saw headwinds in its origination business. 

Funded volume declined to $3.3 billion in Q3, down from $3.8 billion in Q2 and $5.7 billion in Q3 2022. Mr. Cooper ranked as the 26th largest lender in the country, according to Inside Mortgage Finance (IMF). The company came in as the second-biggest servicer in the U.S., IMF data showed.

Source: housingwire.com

Apache is functioning normally

UBS today released a shareholder report outlining the many causes that led the Swiss bank to write down billions in U.S. subprime mortgage-related losses.

The 50-page report attributed the $18.7 billion in residential mortgage losses reported in 2007 to things like poor risk control and management, lack of in-depth data, over reliance on AAA-ratings, poorly conceived trading incentives, and the severe dislocation of the credit markets last summer.

UBS said approximately two-thirds of the bank’s total losses were attributable to the CDO desk, much of it via CDO Super Senior positions, the highest AAA-rated tranche of a CDO.

In 2005, the CDO desk generally sold most of these positions to third party investors, but after the first few deals, began retaining the Super Senior positions on its books because of their “attractive source of profit.”

This in turn became a huge problem after the credit markets became illiquid beginning in August of last year.

“MRC (Market Risk Control) appears not to have substantively challenged the CDO desk when significant limit increases for the RMBS warehouse were requested initially in late 2006, and then again in Q2 2007, when the Subprime CDO business was undergoing significant growth,” the report said.

“There was considerable reliance on AA/AAA ratings and sector and concentration limits which did not take into account the fact that more than 95% of the ABS Trading Portfolio was referencing US underlying assets (i.e., mortgage loans, auto loans, credit card debts etc.).”

UBS also noted that the CDO origination team and the CDO desk that purchased the Super Seniors operated on the same reporting line, which could have led to “misincentives regarding investment strategy.”

“Essentially, bonuses were measured against gross revenue after personnel costs, with no formal account taken of the quality or sustainability of those earnings.”

A further 16 percent of the losses stemmed from the firm’s failed hedge fund, Dillon Read Capital Management, which closed last May.

The report also claimed that specific information regarding the quality of mortgage securities was not readily available, and attempts to communicate the severity of the mortgage crisis fell on deaf ears.

“Neither risk management nor the control functions had readily accessible data upon which to perform fundamental analysis of the securities in the portfolio, for example vintage, 1st or 2nd lien or FICO score.”

“A number of attempts were made to present Subprime or housing related exposures. The reports did not, however, communicate an effective message for a number of reasons, in particular because the reports were overly complex, presented outdated data or were not made available to the right audience.”

UBS plans to meet with the Swiss Federal Banking Commission to formally discuss these matters and will report such action to shareholders.

See also: What is the definition of a subprime mortgage?

(photo: phobia)

Source: thetruthaboutmortgage.com

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In addition to discussing Zillow’s financial results and the continual evolution of its Housing Super App vision on its third quarter earnings call, CEO Rich Barton and Zillow executives took time to address the elephant in the room: the verdict of the Sitzer/Burnett commission lawsuit.

While the industry has yet to find out what Judge Stephen Bough’s injunction will say and the three defendants, the National Association of Realtors, Keller Williams and HomeServices of America, have vowed to appeal the decision, Barton believes his firm will thrive regardless the outcome.

In his remarks about the suit, Barton said Zillow is a strong supporter of free, fair and transparent access to real estate information, independent representation, and transparent and negotiable agent commissions.

“From where we stand it seems clear that these principles are in the best interest of mover consumers, agents and the industry as a whole,” Barton said. “We expect industry changes resulting from this lawsuit or ones like it will involve commission transparency and negotiability provisions similar to those seen in several of the settlement the plaintiffs entered into with other real estate franchisors in advance of the trial.”

Barton also told listeners that Zillow believes complete disruption to the existence of buyer’s agents is improbable, as the firm believes it is important for buyers to have someone looking after their interests in the homebuyer transaction. However, if buyer’s agency does disappear, Zillow is considering models where the U.S. market transitions to one where one or two large listing portals offer pay-to-play inclusion on a digital listings marketplace.

“In this scenario, Zillow would be an odds on favorite to become the leading digital listings marketplace, given our brand, traffic, engagement and our unique focus on solving movers real pain points,” Barton said.

Despite what Barton believes would be an advantage for his firm, he said Zillow is not advocating for this to happen.

“We believe the pay-to-play marketplace is a step backwards for consumers and the industry as a whole and we very much like our position and growth plan in a market structure the continually evolves towards our principles of access, independence and transparency,” he said.

Zillow’s financial results

Despite a slower residential housing market environment caused by rising mortgage rates and low housing inventory, Zillow Group still managed to record an annual increase in revenue in the third quarter of 2023.

The real estate behemoth recorded $496 million in revenue, an increase of 3% year over year. The firm’s residential sector was responsible for $392 million of the overall revenue. The sector’s revenue for the quarter was down 3% annually, which Zillow executives were pleased with given the macro environment.

Zillow was also pleased with the performance of its mortgage sector, Zillow Home Loans, which reported an 88% year-over-year increase in purchase loan origination volume for the quarter. Even with this massive increase, Zillow Home Loans still recorded an 8% annual decline in mortgage revenue to just $24 million.

The firm’s mixed bag of revenue results garnered Zillow a net loss of $28 million for the quarter, which represents an improvement over the $53 million net loss it reported in Q3 2022.

“Today we are focused on delivering the Housing Super App, a tech enabled end-to-end platform with products and services that make it easier for people to move,” Barton told investors and analysts listening to the firm’s Q3 2023 earnings call Wednesday evening. “You’ve heard me say many times that 2023 is crucial for Zillow. It’s a year of execution as we prepare to scale in 2024 and 2025. We are very pleased with what we’ve accomplished today.”

While much of the call was given over to discussion of the Sitzer/Burnett suit, to which Zillow is not a party, none of the call featured discussions of the REX Real Estate false advertising lawsuit, in which Zillow, the only defendant, emerged triumphantly less than a month ago.

Originally filed by REX in March 2021, against Zillow and NAR, the lawsuit alleged that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”

Despite the verdict, it does not appear that Zillow’s legal battle with REX is over. On Tuesday, the now defunct discount brokerage, filed a motion seeking a new trial.

In the motion, REX claimed that during the initial trial the court “gave an improper and case dispositive affirmative defense instruction on REX’s claim under the Washington Consumer Protection Act.”

REX claims that this enabled Zillow to “improperly escape liability for knowingly creating a deceptive and unfair web site by simply convincing the jury that it benefitted from doing so.”

Source: housingwire.com

Apache is functioning normally

Epilepsy can be a disability that qualifies for Social Security Disability Insurance (SSDI) benefits if there is medical documentation, proof of treatment and limited ability to do certain tasks. It may also qualify for work accommodations under the Americans with Disabilities Act (ADA).

How much are SSDI benefits for epilepsy?

There is no universal fixed dollar amount of SSDI benefits for epilepsy. SSDI benefits are based on, among other things, how much a person has contributed to Social Security from past earnings.

The average monthly Social Security Disability Insurance benefit was about $1,487 in September 2023, according to the Social Security Administration

. Disability benefits may be taxable.

What types of epilepsy qualify for disability?

In its listing of impairments (called “the Blue Book”), the Social Security Administration details how it evaluates epilepsy for disability benefits. There are two common types of epilepsy

.

  1. Generalized tonic-clonic seizures and dyscognitive seizures. These are characterized by loss of consciousness, sudden muscle tensing and convulsions. The SSA considers whether these occur at least once a month for at least three consecutive months despite treatment, or at least once every two months for at least four consecutive months despite treatment and with a “marked limitation” in either physical functioning; understanding, remembering, or applying information; interacting with others; concentrating, persisting, or maintaining pace; or adapting or managing oneself.

  2. Dyscognitive seizures. These are characterized by alteration of consciousness, but without convulsions or the loss of muscle control. Symptoms may include blank staring, change of facial expression and repetitive gestures or sounds. The SSA considers whether these seizures occur at least once a week for at least three consecutive months despite treatment, or at least once every two weeks for at least three consecutive months despite treatment and with a “marked limitation” in either physical functioning; understanding, remembering, or applying information; interacting with others; concentrating, persisting, or maintaining pace; or adapting or managing oneself.

Epileptic episodes characterized by less than what’s listed above could also qualify if the symptoms prevent full-time employment, according to Jennifer Cronenberg, who is senior counsel and director of legal information with the National Organization of Social Security Claimants’ Representatives (NOSSCR).

Work accommodations for epilepsy

The Americans with Disabilities Act considers epilepsy a disability, and it requires employers to provide reasonable accommodations to employees who have epilepsy

.

These workplace accommodations might include:

  • A rubber mat or carpet to cushion a fall.

  • A private area to rest after having a seizure.

  • Breaks to take medication.

  • Schedule adjustments, schedule consistency, permission to work at home or leave to take medicine or get treatment.

  • Room for a service animal trained to alert and protect the person before and during seizures.

  • Checklists to help with remembering tasks, or access to written information or instructions and voice-activated recorders for verbal instructions.

  • The removal of marginal job functions to allow for more focus.

  • Extended training time and refreshers.

  • A mentor for daily guidance.

Epileptic events can look different for different people. Individuals should feel comfortable working with their employers to come up with a plan of action in the case of an epileptic event. This could include educating co-workers about the signs of epilepsy and what to do if someone is having a seizure.

🤓Nerdy Tip

Note that the Social Security Administration and the Americans with Disabilities Act have different methods of determining disability. The Social Security Administration doesn’t automatically consider a person disabled if they are receiving work accommodations under the ADA.

How to apply for SSDI

The SSDI application process can be arduous. It helps to have all the information required. To start the process, you’ll need the following

:

  1. Your work history.

  2. A medical history, diagnosis information, test results and medication records.

  3. Information about your treatment (including physician, hospitals or clinics that provided care, plus the dates of your visits).

  4. Information about any family members who may qualify for benefits if you receive benefits.

Once you’ve filled out your initial application, your local SSA office will verify your nonmedical eligibility for disability (such as whether you’ve paid Social Security taxes). Then, it transfers the application to the Disability Determination Services office in your state, which makes the decision about whether you qualify for SSDI.

You may have to fill out additional forms regarding your work history and daily functioning. Be as accurate as you can when filling these out, says Amanda Bonnesen, managing partner at the Berger and Green law firm in Pittsburgh. They are the best way to communicate your symptoms and daily struggles.

There are four levels of appeal you might pursue if your application is denied

.

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How likely is it that the SSA will approve my SSDI application?

The SSA denies the majority of disability applications (62%)

. Because there is a human on the other end of the decision, it is often hard to predict whether approval is likely, Bonnesen says.

The best way to set your case up favorably is to follow the rules, Bonnesen says. That means remaining in medical treatment, sticking with recommended specialists, undergoing any necessary testing and taking all medications prescribed. Refrain from drug and alcohol use during this time, Bonnesen added.

Bonnesen also recommends keeping a daily symptom journal that you can submit to SSA. “It can just be something simple where the person writes down things like ‘had a seizure today — lasted five minutes, did not lose consciousness, but had to sleep for two hours afterward,’” she said. “Simple stuff like that, recorded in real-time, can be helpful for the decision-makers at SSA to see.”

The process for an SSDI application can last up to three years, Bonnesen said. “If a person is diagnosed with epilepsy but has been episode-free for a prolonged period, they are not likely to be found disabled, because the diagnosis is not causing any day-to-day disruption in functioning,” she said.

Source: nerdwallet.com