EverBank Rolls Out LIBOR Reverse Mortgage Products
February 13th, 2008 | by admin Published in EverBank, News, Products, Reverse Mortgage | 7 Comments
As the industry continues to shift from CMT to LIBOR based reverse mortgage products EverBank Reverse Mortgage recently announced the release of their LIBOR based HECM product. The product will offer seniors five different margins of 1.00%, 1.125%, 1.25%, 1.375% and 1.50%.
We started seeing LIBOR based reverse mortgages a few months ago and according to Joe DeMarkey, VP - Director of Corporate Development for EverBank Reverse, there were two reasons they delayed releasing the product. “As the interest rate environment has started to normalize itself this month, LIBOR HECM’s now offer (at most margin levels in the marketplace) the same Principal Limit as most Treasury-bill based HECM’s. In addition, since most institutional investors prefer LIBOR based assets to Treasury-bill based assets, we believed that this would also help the liquidity issue that we are seeing in the secondary market. These were the two factors that drove our timing decision.”
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, EverBank, LIBOR
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February 13th, 2008 at 8:48 pm (#)
Why is it that reverse mortgages are still so universally misunderstood? A major problem for the promoters.
February 14th, 2008 at 5:30 am (#)
Is there any liquidty problems selling CMT based reverse product into the securities markets? Are originators holding these products in portfolio or is there a demand for these assets in the overall financial markets?
Joe
February 14th, 2008 at 8:28 am (#)
So are there 4 different margins or 5?
1.00%, - one
1.125%, - two
1.25%, - three
1.375% - four
and 1.50%. - five
February 14th, 2008 at 8:38 am (#)
My bad, there are 5, I updated the post.
February 14th, 2008 at 8:38 am (#)
There is higher demand and higher pricicng (read: more $$) in the secondary market for LIBOR Products. All of this has been disguised as LIBOR rates being more stable over the long term but the reality of it is economics. This is a similar shift that the forward market experienced about 6-7 years ago when Wall Street changed its preference from Treasury based ARMs to Libor ARMs.
February 14th, 2008 at 12:32 pm (#)
From the client perspective, what is it they should know about the Libor products versus the T-bill products?
March 20th, 2008 at 10:38 am (#)
I don’t understand how the various rates listed relate to the customer/reverse mortgage holder. I am now looking to refinance with EverBank formerly BNY.
Main purpose is to have more available cash for home maintenace, repairs etc.
This loan does not sacrifice the homeowner’s equity as has been misstated by the media.