HECM Pathway Updates Help More Reverse Mortgage Borrowers Qualify

image 1st Reverse recently announced some changes to its HECM Pathway product, which is designed to assist borrowers in hardship situations where they receive little to no proceeds after settlement.  Starting in 2009, the program includes four major changes to help more borrowers qualify:

  1. Fixed Rate program now available for HECM Pathway™ borrowers (ARM’s previously available).
  2. Purchase and refinance transactions are eligible.
  3. Borrower eligibility for consideration under the HECM Pathway™ programs are limited to borrowers needing to be funds to closing or borrowers receiving less than $10,000 in proceeds at the time of loan funding.
  4. Lower HECM Pathway™ qualifying interest rate calculation produces enhanced borrower proceeds.

Below is an example of what a 70 year old with an appraised value of $200,000 is able to qualify for with a HECM and the Pathway.

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EXAMPLE NOTES: For illustration purposes only.  Programs, rates and terms subject to change without notice.  Illustration intended for Financial Professional use only; not intended for consumer use.  Illustration created using active market rates on the date sample was prepared.

“The new enhancements to the HECM Pathway™ program continue our commitment to helping seniors,” said Ralph Rosynek, President of 1st Reverse.  “We are able to offer access to enhanced funding from a reverse mortgage program that borrowers facing financial hardship need during these uncertain financial times.”

1st Reverse

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  • Looks like all they did was put a $35 servicing on all the “standard hecms” and a “$25 servicing fee on the “hecm pathway”. Since we all know the pls are maxed out, that would be the only way to enhance benefits. Tell me if I’m wrong.

  • I would also like to know what the difference is? Sounds like they put a label on something that all lenders already provide. Great marketing, but deserves explanation on a site like yours. Please explain how “Standard” and “Pathway” differ. It’s great to support your sponsors but if there truly is a difference it deserves the spotlight and an explanation.

    Please explain how their Fixed Rate could possibly offer any more money than any other lender? I am not concerned about fees…keep the comparison at the Principal Limit level. If it is simply the rate, I feel this is extrememly misleading and should have a foot note attached.

    Thank you.

  • As you have stated the PL is set. The difference comes in the fact that 1st reverse is taking a hit by lowering the servicng fee to $20 thus lowering the set aside and providing for more money to the borrower. get facts before u comment

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