Have We Seen The Last of The HECM 100?
August 23rd, 2007 | by admin Published in 1st Reverse, Financial Freedom, HECM, LLS, Products, RMLN, Reverse Mortgage, Sun West | 6 Comments
The past week or so has been an interesting time in the reverse mortgage world. Early last week, out of nowhere I received an email from Sun West that said they would no longer accept any HECM 100 submissions unless it was already in the current pipeline. Surprised?… Yes. Shocked… no. With the liquidity crunch the mortgage industry is experiencing, it was inevitable that it would eventually effect the reverse mortgage business.
Over the next few days we saw everyone make adjustments to their HECM products. Here is the rundown as of August 23rd:
- Sun West had initially suspended offering the HECM but after seeing a competitor that still offered the product, it looks like they are offering it again.
- Financial Freedom is still offering the HECM 100 and adjusted their pricing structure on all HECM products.
- Lender Lead Solutions has suspended offering the HECM 100 unless the loan was already in process.
- 1st Reverse Financial Services is still offering the HECM 100 along with their recently released HECM Pathway which has an even lower margin.
- Reverse Mortgage Lenders Network is still offering the product but has adjusted their pricing structure.
While some reverse mortgage lenders have or will pull the HECM product, it doesn’t look like it will stop lenders from releasing new products. According to a newsletter from Financial Freedom, they are planning to release a fixed jumbo and HECM product to market soon. LLS has mentioned that they are looking into releasing a new Libor based HECM product now that HUD has approved the use of the index. David Peskin, CEO of LLS, also recently said that with the backing of KBC they will be able to develop new proprietary products. Last but not least, Sun West also has plans to release their new Simple HECM product in the coming weeks.
So while it’s possible we may eventually lose the HECM 100, I wouldn’t be surprised if we start to see everyone release a HECM 110 or even a HECM 120 as soon as next week… so exciting.
Cheers!
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, HECM 100, FHA, HUD
Sign up to receive free updates like this by email or can subscribe my RSS feed. Thanks for reading!
- Related Posts
- Reverse Mortgage Lenders Network Releases Prime Advantage to Brokers
- Jumbo Reverse Mortgage from Virtual Bank
- Bank of New York HECM 100 Information (Update)
Subscribe by email:
August 28th, 2007 at 7:31 am (#)
[…] interesting development in reverse mortgages - is HECM 100 gone? - this is a result of the credit crunch - looks like margins are going back up again - they were previously going down - thanks John Yedinak - reversemortgagedaily […]
August 28th, 2007 at 3:37 pm (#)
[…] there has been talk of lenders no longer offering the HECM 100, 1st Reverse Financial continues to release new products to their brokers. A few weeks ago, […]
August 29th, 2007 at 5:47 am (#)
what about wells fargo..the nations largest lender…they are still offering the HECM 100
September 16th, 2007 at 3:18 pm (#)
[…] shouldn’t be a surprise as we have seen other lenders stop offering the product starting at the end of last month. The phase-out method is a much better alternative to just […]
October 9th, 2007 at 2:31 pm (#)
[…] you forgot, in late August a handful of lenders announced that they wouldn’t be offering the HECM 100 anymore, and it looked like the industry was going to shift towards a LIBOR based reverse mortgage […]
May 2nd, 2008 at 6:34 am (#)
[…] Lender Lead Solutions officially announced that they plan to offer a LIBOR based HECM product to their brokers. Back in July, HUD approved the use of the LIBOR index and lenders recently started talking about offering LIBOR based products ever since the HECM 100 started to disappear. […]