When 1st Reverse announced it was releasing a new jumbo reverse mortgage product, there was plenty of questions from RMD readers.  Below is some additional information about the new FLEX jumbo reverse mortgage product :

• Index = 1-Month LIBOR
• Margin – 5.500
• Available for refinances and purchases.
• Eligible Property Types – SFD, Condos, PUD’s, and 2-4 units (if one unit is owner occupied
• Proprietary counseling required (IAMP)
• Eligible states = AZ, CA, CO, CT, DOC, DE, FL, GA, HI, IL, MI, MD, NY, NC, NH, NJ, NM, MD, NY, NV, OH, OR, PA, RI, SC, VT, WA, VA, WI

Borrowers with property values of $1.5 million and up will find the FLEX provides a competitive alternative to a HECM, even with the higher loan limits.  Below is an example of how the product compares to a HECM for a borrower with no mortgage balance.  

Correspondents will be required to complete the mandatory webinar training in order to be able to originate the FLEX product.  Initially, the product will be rolled out to a select group of correspondents said Ralph Rosynek, President of 1st Reverse.