Senior Lending Network Moves To LIBOR, Eliminates CMT Based Reverse Mortgages

image The Senior Lending Network announced earlier this week that it was moving all of its products to LIBOR starting on Monday, March 16, 2009.  According to the notice sent to brokers, SLN believes the pricing on CMT products will further diminish, therefore making the need for this product insignificant in today’s marketplace. 

In the email, they compare the LIBOR 275 to a CMT 300 which shows that the consumer is receiving a similar principal limit and a lower margin.  See table:

Product CMT 300 LIBOR 275
Home Value $440,000 $440,000
Interest Rate 3.72% 3.25%
Available Principal Limit $268,332 $268, 325
*As of March 10, 2009    

The Senior Lending Network was the first wholesaler to offer LIBOR based products and they’ve been a big supporter of it due to the secondary markets preference of LIBOR.  As far as I know, they’re the first wholesaler to move back to strictly LIBOR based products, well see if anyone else follows suit.

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