1st Reverse Financial Services, LLC, a subsidiary of Family Federal Savings of Illinois, has released a new FHA-insured HECM program called the HECM Pathway. The HECM Pathway™ is designed to assist borrowers who need to bring funds to closing or those receiving less than $5,000.00 in proceeds from settlement. “In today’s marketplace there appears to be a large, underserved pool of reverse mortgage borrowers that cannot currently qualify for a reverse mortgage loan or receive little to no access to funds at the time of closing. The HECM Pathway™ now opens the door to those seniors facing the greatest financial challenges who desire to remain in their homes and need the most help,” said Ralph Rosynek, President of 1st Reverse.
The HECM Pathway™ is a Home Equity Conversion Mortgage (HECM) that carries with it the full protections, payout methodologies and features of all other HECM mortgages insured by FHA. The HECM Pathway™ is different from most versions of HECM loans in that there will be a variety of margins to choose from. While we have seen the ability to alter margins with Lender Lead Solutions Flex Margin Advantage™, the HECM Pathway™ enables a borrower to receive a lower margin than the popular HECM 100. Rosynek said, “You can expect to see margins from .65 to .95 priced accordingly on the HECM Pathway”.
“We believe that many of our correspondent lending partners have expended considerable resources to find potential customers; many of which were unable to qualify. Our lending partners now have a new pathway to help even more reverse mortgage borrowers. It’s a win-win for everyone involved.” said David Cesario, EVP of Sales and Marketing at 1st Reverse. The product will be available to all 1st Reverse approved correspondents starting August 13th.