1st Reverse Financial Services, LLC (1^st Reverse), a subsidiary of Family Federal Savings of Illinois, recently announced enhancements to their Fixed4Life-XL^TM and FLEX-XL^TM proprietary products.  The jumbo products are exclusively available through 1^st Reverse’s Wholesale Correspondent Lending Program.

I originally covered the products in August of last year, but the latest enhancements make the products even more competitive.  The breakdown of the new enhancements are:

• Loan amounts available to $20MM
• Can be used for home purchases
• Available for second homes
• Products available to non-FHA approved brokers
• Compensation enhancements

“We believe that our Proprietary Loan Product programs represent the next wave of innovation in the reverse mortgage marketplace” said Ralph Rosynek, President of 1^st Reverse. “Since we released the enhancements to the programs, we are finding many seniors with higher valued homes can now truly experience the full power of a reverse mortgage loan.”

According to the press release, 1^st Reverse will typically pay the routine closing costs and fees associated with a reverse mortgage loan with the borrower only paying an origination fee (and any specific state or municipal taxes, costs or fees), on the Fixed4Life XL^TM program.  Additionally, there is no servicing set-aside calculation. These enhancements effectively increase the available proceeds for the borrower while lessening their initial outstanding loan balance. The FLEX-XL^TM ARM version does require the borrower to pay the full direct closing costs and origination fees.

The new product enhancements also enable non-FHA approved brokers to originate their proprietary products themselves.  “Many of our approved HECM-advisor partners are very excited to have new products that can serve a different customer profile and creates a significantly greater origination fee than is possible under the HECM-advisor program” said David Cesario, Executive Vice-President of 1^st Reverse. “We are being contacted in ever growing numbers by non-FHA approved banks, brokers other lenders seeking our Proprietary Loan Product programs.”  To read a copy of the press release click the link below.

Details on Enhanced Proprietary Loan Product Reverse Mortgage Programs