Financial Freedom Cash Account Suspended
June 18th, 2008 | by admin Published in Financial Freedom, Jumbo Products, Products, Reverse Mortgage | 5 Comments
Yesterday Financial Freedom alerted their account executives that they would be suspending their jumbo Cash Account product. According to the emails I’ve seen Financial Freedom had budgeted $600 million in cash account production for 2008 and they have already originated $700 million YTD. With the current mortgage environment and Indymacs liquidity problems they company isn’t able to put anymore of the loans onto their balance sheet.
As of right now I’m being told that FF will be accepting applications for the Cash Account until 6/30 and they must be closed by 7/31. These dates could change a bit but I will be sure to update everyone once I get the official announcement from Financial Freedom which should be out in the next day or so.
I’m being told Financial Freedom retail will still be able to originate the product. I’ve contacted management at FF and I’ve yet to receive any response about this. Thanks to all of the other Financial Freedom employees that are keeping me updated.
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June 18th, 2008 at 4:47 pm (#)
They’ll be back. Just as soon as liquidity returns to the secondary market. But in the mean while, there are other jumbo lenders still funding reverse mortgages.
June 19th, 2008 at 9:54 am (#)
Perhaps this is for retail, or nationwide, but from a broker perspective, this has already happened in California. They turned off our pipeline April 22 (?) with a final funding date of May 9. I remember that date because I had 2 that had to fund (one a purchase) and it was literally at cut-off time that I could finally breathe again.
As far as other lenders, BofA now (essentially) has the market to themselves with their purchases of Seattle Mortgage and Countrywide. I hope ReverseMortgageCalifornia is right, but I’m still looking for other JUMBO lenders to take Financial Freedom’s place…
June 19th, 2008 at 11:13 am (#)
As a so-cal broker I am very disappointed with the way Financial Freedom has been handling their wholesale business. I’ve been loosing Cash Account deals left and right for the past months since Financial Freedom’s retail LOs are able to offer higher loan amounts than myself - their retail dept. caps the loan amount at $2 mil. whereas brokers’ loan amounts are limited to $1.5 mil.!!
I have also been informed from multiple reliable sources that Financial Freedom’s retail loan officers will be able to continue offering the Cash Account after 7/31 and on top of all that their retail LOs have been able to compensate mortgage brokers through an advisor program (similar to the HECM advisor program) for Cash Account leads for years!
How is it possible to run a healthy wholesale business when the lender you are trying to work with is in direct competition with their own brokers?
Can anyone tell me which reverse mortgage lender still offers a jumbo product for brokers?
June 19th, 2008 at 12:16 pm (#)
[…] the announcement that Financial Freedom was suspending their Cash Account program, several RMD readers asked me who was still offering a jumbo reverse mortgage for […]
July 7th, 2008 at 8:19 am (#)
[…] few weeks ago Financial Freedom issued a lender alert to brokers that said they would be suspending the cash account until the secondary market comes back for jumbo […]