Non FHA Approved Brokers Able to Originate Jumbo Reverse Mortgages
May 28th, 2007 | by admin Published in Jumbo Products, Products, Reverse Mortgage | 2 Comments
Pacific Community Mortgage has released their Cash Plus™ jumbo reverse mortgage product which gives non-FHA approved lenders the ability to originate the product and receive the entire origination fee. While FHA approved brokers are also allowed to originate the product, PCM is the first reverse mortgage lender to allow non-FHA approved brokers the opportunity to originate a jumbo reverse mortgage. Different lenders are allowing their approved brokers to offer a reverse mortgage advisor program which gives non-FHA approved mortgage brokers the ability to offer HECM products to borrowers. The reverse mortgage advisor program only allows the non-FHA approved brokers the ability to earn a referral fee for a HECM loan.
Quick Overview of the Cash Plus™ program:
- Based on 1-Month Libor Index, adjusts monthly
- 3.25% or 3.50% Margin
- No Maximum Lending Limit (2 Appraisals required above $2,000,000 Value)
- Min Age 62 & Non Recourse Loan
- 2% Max Origination (100% to Originator)
- No Mortgage Insurance Required
- No Credit or Employment Qualifications
- Primary (1‐4 Units) & 2nd Homes (1 Unit only on 2nd Homes)
- Use for Purchase & Refinance
- No Prepayment Penalty
- Cash, Credit Line, and Monthly Payment Term
The Cash Plus™ program is also underwritten more like your typical Fannie Mae loan by not requiring appraisers to be FHA approved and FHA condo guidelines no longer apply. As we see more proprietary products being released I wouldn’t be surprised if more lenders start to move away from FHA and use FNMA guidelines more often.
Currently PCM is licensed in California, Colorado, Utah, Arizona, Nevada, Idaho, Oregon and Florida. If you would like to read a full copy of the press report click the link below.
Cash Plus™ Reverse Mortgage Press Release
Technorati tags: Reverse Mortgage, Jumbo Reverse Mortgage, HECM, FHA, HUD, Senior Finance
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September 17th, 2007 at 2:25 am (#)
[…] Back Up and Read On about the New Reverse Mortgage For those who are 60 and older, you may already be familiar with the HUD insured FHA adjustable rate reverse mortgage products that have been around for a while. New statistic claim states 68% of baby boomers plan to use their home equity for their retirement income. This ideal consumer now has a choice when it comes to Reverse Mortgages. The original R.M. product and the new Jumbo Reverse Mortgage program; both are presumably the same, except the J.R.M’s don’t have the limits like government funded secured reverse mortgages. The new J.R.M. is owned by banks, mortgage companies, and private companies and they are not a federally backed security. However, they offer for the first time a new fixed rate mortgage, some offer the loan with no closing costs, as well as some offer a guarantee of a growth rate of 9% on the line of credit annually. A product that is ideal for those baby boomers that are already in a reverse mortgage, and would like to refinance out of the adjustable rate to a fixed one. The other big advantage of using a J.R.M is that it locks in your home’s equity value at current market prices. This could potentially help those who plan on retiring soon, secure their futures in our current declining market, and (remember it’s harder to get a loan with no job, the downside to retiring). If you are turning 62 this upcoming year, it pays to look into a reverse mortgage. It allows you to plan for emergencies or have the money handy for that long-waited trip that’s been calling you. Tap into your equity without having to sell your home and move. If you do not need the money right away, no worries, lock in on the price of your home now and earn a growth of up to 9%. Contact your favorite mortgage broker or anyone of us, The Super Uber-Bloggers at Coldwell Banker’s New RealEstateCompass.com For another link to explain the Reverse Mortgage Loan Blog » Top 10 Reverse Mortgage Myths Dispelled at http://reversemortgageloanblog.com/2007/09/12/top-10-reverse-mortgage-myths-dispelled/And also check out: http://reversemortgagedaily.com/2007/05/28/non-fha-approved-brokers-able-to-originate-jumbo-reverse-…Andhttp://reversemortgagedaily.wordpress.com/2007/01/29/more-jumbo-reverse-mortgage-products-coming-soon/ […]
October 10th, 2007 at 1:54 am (#)
[…] For those who are 60 and older, you may already be familiar with the HUD insured FHA adjustable rate reverse mortgage products that have been around for a while. New statistic claim states 68% of baby boomers plan to use their home equity for their retirement income. This ideal consumer now has a choice when it comes to Reverse Mortgages. The original R.M. product and the new Jumbo Reverse Mortgage program; both are presumably the same, except the J.R.M’s don’t have the limits like government funded secured reverse mortgages. The new J.R.M. is owned by banks, mortgage companies, and private companies and they are not a federally backed security. However, they offer for the first time a new fixed rate mortgage, some offer the loan with no closing costs, as well as some offer a guarantee of a growth rate of 9% on the line of credit annually. A product that is ideal for those baby boomers that are already in a reverse mortgage, and would like to refinance out of the adjustable rate to a fixed one. The other big advantage of using a J.R.M is that it locks in your home’s equity value at current market prices. This could potentially help those who plan on retiring soon, secure their futures in our current declining market, and (remember it’s harder to get a loan with no job, the downside to retiring). If you are turning 62 this upcoming year, it pays to look into a reverse mortgage. It allows you to plan for emergencies or have the money handy for that long-waited trip that’s been calling you. Tap into your equity without having to sell your home and move. If you do not need the money right away, no worries, lock in on the price of your home now and earn a growth of up to 9%. Contact your favorite mortgage broker or anyone of us, The Super Uber-Bloggers at Coldwell Banker’s New RealEstateCompass.com For another link to explain the Reverse Mortgage Loan Blog » Top 10 Reverse Mortgage Myths Dispelled at http://reversemortgageloanblog.com/2007/09/12/top-10-reverse-mortgage-myths-dispelled/And also check out: http://reversemortgagedaily.com/2007/05/28/non-fha-approved-brokers-able-to-originate-jumbo-reverse-… […]