Comments on: LIBOR Flex Margin Advantage From Lender Lead Solutions http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/ Reverse Mortgage News and Information Fri, 21 Nov 2008 22:50:33 +0000 http://wordpress.org/?v=2.3.1 By: Jim Saeger http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2808 Jim Saeger Mon, 07 Jan 2008 00:35:26 +0000 http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2808 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. 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.

]]> By: LIBOR Reverse Mortgage Choices Expand at Lender Lead Solutions at Reverse Mortgage Daily http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2735 LIBOR Reverse Mortgage Choices Expand at Lender Lead Solutions at Reverse Mortgage Daily Tue, 01 Jan 2008 23:51:02 +0000 http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2735 [...] 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 [...] […] 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 […]

]]> By: Sun West Mortgage Company Releases Simple HECM | Reverse Mortgage Research http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2351 Sun West Mortgage Company Releases Simple HECM | Reverse Mortgage Research Wed, 07 Nov 2007 18:10:21 +0000 http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2351 [...] 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 [...] […] 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 […]

]]> By: Sun West Mortgage Company Releases Simple HECM at Reverse Mortgage Daily http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2306 Sun West Mortgage Company Releases Simple HECM at Reverse Mortgage Daily Tue, 30 Oct 2007 01:13:36 +0000 http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2306 [...] 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 [...] […] 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 […]

]]> By: Jim Frannea http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2244 Jim Frannea Fri, 19 Oct 2007 21:50:56 +0000 http://reversemortgagedaily.com/2007/10/18/libor-flex-margin-advantage-from-lender-lead-solutions/#comment-2244 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. 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.

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