Senior Lending Network CEO Provides Insight Into Switching To LIBOR

image Several different’ people were voicing their opinion on the Senior Lending Network’s decision to eliminate the CMT based reverse mortgage product last week and SLN was paying attention.  To provide a bit more insight into why the decision was made, SLN’s CEO David Peskin responded with the following statement:

At this point in time, yes we are dropping the CMT.  Fannie Mae recently transitioned to mandatory delivery along with Wall Street.  Since our business is composed of less than 10% CMT, from a risk management perspective we believe it is a wise move to temporarily discontinue the product line.  Senior Lending Network is a firm believer in doing what is best for the consumer and in this market the spreads between the LIBOR and CMT are small.  We believe that LIBOR is a very good alternative for both the consumer and the broker.  Should the spread increase, we will make the necessary product adjustments and re-introduce the CMT to better serve our brokers and the consumers we serve.  The average reverse mortgage is in force for 7 years.  Our analysts have reviewed the performance history of both indices and the end result is that LIBOR is a better alternative for the long term. 

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The reverse mortgage industry is now a dynamic marketplace with products and services changing to meet consumer, broker and secondary needs.  We will continue to carefully adjust our offerings based on what the market dictates.

David Peskin – Senior Lending Network

It’s going to be interesting to see how the industry handles the switch to mandatory delivery on April 1st.  More on this soon…

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  • David has demonstrated time and time again that he has a clear understanding of how to navigate a wholesale/retail Reverse business thru the choppiest waters created by Fannie Mae’s candle-in-the-wind business model. Anyone can be a Monday Morning Quarterback, those wholesalers who simply concentrate on market share and do not have a game plan for the new mandatory delivery policy will become road kill.

  • Now Boys: I truly like the way some can express their
    feelings without having Mr. Peter Bell or Admin threatening to wash one’s mouth out with a bar of Ivory Soap.

  • I heard that many of the top execs at the company are fleeing and that it was announced that the parent KBC Financials is looking to divest. What can we assume from this ?

  • If Mr. Peskin was so wonderful then he would not have had a huge new office space built that is half empty due to multiple layoffs. He also would not be on the hunt for a new investor.

    DOWN WITH SLN!!!!

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