Pacific Community Mortgage has released their Cash Plus™ jumbo reverse mortgage product which gives non-FHA approved lenders the ability to originate the product and receive the entire origination fee. While FHA approved brokers are also allowed to originate the product, PCM is the first reverse mortgage lender to allow non-FHA approved brokers the opportunity to originate a jumbo reverse mortgage. Different lenders are allowing their approved brokers to offer a reverse mortgage advisor program which gives non-FHA approved mortgage brokers the ability to offer HECM products to borrowers. The reverse mortgage advisor program only allows the non-FHA approved brokers the ability to earn a referral fee for a HECM loan.
Quick Overview of the Cash Plus™ program:
- Based on 1-Month Libor Index, adjusts monthly
- 3.25% or 3.50% Margin
- No Maximum Lending Limit (2 Appraisals required above $2,000,000 Value)
- Min Age 62 & Non Recourse Loan
- 2% Max Origination (100% to Originator)
- No Mortgage Insurance Required
- No Credit or Employment Qualifications
- Primary (1‐4 Units) & 2nd Homes (1 Unit only on 2nd Homes)
- Use for Purchase & Refinance
- No Prepayment Penalty
- Cash, Credit Line, and Monthly Payment Term
The Cash Plus™ program is also underwritten more like your typical Fannie Mae loan by not requiring appraisers to be FHA approved and FHA condo guidelines no longer apply. As we see more proprietary products being released I wouldn’t be surprised if more lenders start to move away from FHA and use FNMA guidelines more often.
Currently PCM is licensed in California, Colorado, Utah, Arizona, Nevada, Idaho, Oregon and Florida. If you would like to read a full copy of the press report click the link below.