Lender Lead Solutions is the first company to release a reverse mortgage for borrowers under the age of 62. Until now a borrower had to be 62 in order to receive a reverse mortgage, but with LLS’s Simple60 we are able to provide seniors a new option other than the traditional HECM product. “The growth of the senior market provides a tremendous expansion opportunity for new proprietary products in the reverse mortgage marketplace,” said David Peskin, chief executive officer of Lender Lead Solutions. “Census statistics tell us that the oldest of the baby boomers turned 60 last year, and more than 4.5 million seniors currently fall between the ages of 60 and 62. We feel this is the perfect time to introduce the Simple60 product.”
Here are the details of the product:
- Age Requirement = 60 years of age or older
- Monthly 1-Month LIBOR
- Margin = 4.0%
- Interest Cap = 6% above initial start rate
- Mortgage Insurance Premium = None
- Maximum Limit of Home Valuation = $2,500,000
- Eligible Property Types = Primary Residence SFR, PUDs, Condos
- Servicing Fee = $35 per month
- Minimum loan amount – $50,000 including fees
- Only fees that the borrower pays are recording fee and taxes.
- Payment Disbursement options = Lump Sum, Line of Credit, Combo of the two
- Broker is compensated with a flat fee depending on the loan amount.
While would think the Simple60 is only targeted at seniors younger than 62, the program has two goals in mind.
- A borrower who is looking to get equity out of their home who is under 62.
- A borrower who is only looking to get a certain amount of money but cant justify paying the large costs associated with doing a reverse mortgage. (ie. mortgage insurance, origination fees)
“As the reverse mortgage industry evolves, Lender Lead Solutions continues to create new products designed for the needs of senior borrowers,” said Peskin. “We’ve compiled extensive research in this marketplace and believe in educating consumers through the Senior Lending Network and our spokesman, actor Robert Wagner. We are pleased that our broker partners now can offer these products to an expanded market, giving them the opportunity to increase their profitability.”
I’m sure everyone reading this has run into a situation where a borrower isn’t quite 62 and this is a great option to offer them until they are able to access the full benefit of a HECM product. Even if you don’t plan on purchasing leads from LLS, you can still sign up with LLS and provide all your originators with this unique product. For more information check out the link to their website below.