LIBOR Flex Margin Advantage From Lender Lead Solutions
October 18th, 2007 | by admin Published in LLS, Products, Reverse Mortgage | 5 Comments
A few weeks ago, Lender Lead Solutions announced the release of the first LIBOR based HECM product, with hopes to eliminate the pricing instability the market is experiencing with CMT based HECMs. “We believe the LIBOR 75 Flex Margin Advantage product is the best of both worlds,” said David Peskin, chief executive officer of Lender Lead Solutions. “The product offers attractive pricing to our brokers, better liquidity to consumers and less interest rate risk for lenders. Additionally, our LIBOR Flex Margin Advantage product offerings have staying power and consistency which, given the climate of the secondary market, is critical.”
Instead of having the usual “one size fits all” approach, LLS products all provide originators the flexibility to adjust margins accordingly to best fit each seniors needs. The new LIBOR Flex Margin Advantage product is no different. The suite offers margins from 75 to 200 on LIBOR based HECMs as well as a 65 margin which is available at a reduced payout. Along with the different margin choices, LLS is the first lender to offer borrowers the choice of a monthly or annual adjustable rate on the LIBOR based HECM.
LLS has been real busy ever since KBC decided to acquire the company back in August. Along with releasing the Prime Equity Advantage and the LIBOR Flex Margin Advantage, they recently announced the expansion of their television campaign with RMD readers favorite reverse mortgage spokesman, Robert Wagner. “Lender Lead Solutions has always thought out of the box in order to better serve the reverse mortgage industry by offering consumer education through its Senior Lending Network television campaign and now is on the cutting edge of product development,” stated Peskin.
With so much going on you would think that LLS would be done releasing new products, but according to Peskin, “The company expects to release several additional new products before the end of the year. This is a reflection of our desire and ability to anticipate and meet the needs of an ever changing marketplace. “ To read a full copy of the press release click the link below.
Lender Lead Solutions Announces Expansion of LIBOR Product Offerings (Business Wire)
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, FHA, HUD, Lender Lead Solutions, Robert Wagner, LIBOR
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October 19th, 2007 at 3:50 pm (#)
As a provider of counseling services for the HECM loan applicants I am having difficulty understanding how this product helps the borrower. Could you explain the rationale of using a LIBOR based product versus a fixed rate product.
As a former lender and observer of the more recent sub-prime debacle I am concerned that Seniors are now being targeted for high risk loans where the equity in their property will be used up quicker and leave them worse off.
Any information that you can provide to help me understand this and other new products would be greatly appreciated.
October 29th, 2007 at 7:13 pm (#)
[…] Simple HECM is a lot like LLS’s LIBOR Flex Advantage product in the respect that they both offer different margins, but the Simple HECM offers a few […]
November 7th, 2007 at 12:10 pm (#)
[…] Simple HECM is a lot like LLS’s LIBOR Flex Advantage product in the respect that they both offer different margins, but the Simple HECM offers a few […]
January 1st, 2008 at 5:51 pm (#)
[…] release. Last week the company announced an expanded LIBOR 85 product offering within its Flex Margin Advantage product line. The LIBOR 85 basis point margin pays a premium to the broker and provides increased […]
January 6th, 2008 at 6:35 pm (#)
I have been doing Reverse Mortgages for a long time and have seen changes from their onset.
I have run the numbers on several customers and the LIBOR based RM’s do not look as appealing as the CMT based HECM. I do feel that the LIBOR product will replace the CMT products some where down the time line.
As far as the FIXED rate RM it works best if there is a large existing mortgage to be paid off and most of the entitlement is used up for that purpose. Other wise the interest rates are prohibitive.