Sun West Mortgage Company sent out a notice to its reverse mortgage brokers that HECM loans with FHA case numbers dated on or after 10/1/09 will no longer receive pricing adjustments for properties located in a range of states which you can see below:
|Type||Old Pricing||New Pricing|
|Properties located in GA, FL, AL, MS and AZ||0.625% Cost||No Cost|
|Properties located in NH, NY, NJ, VT, CT and ME||0.375% Cost||No Cost|
|Approved appraisals that do not meet SWMC guidelines||0.625% Cost||No Cost|
The most interesting part of the announcement was hidden at the bottom of the email regarding the re-launch of their warehouse line division:
Additionally, we are in the process of re-launching our Warehouse Line division, which is scheduled for a January release. Due to the high demand for this product, initial enrollment will be limited to Premium Accounts. Please contact your Account Executive at (800) 453-7884 for further information.
The lack of warehouse lines for reverse mortgage lenders has been one of the biggest issues facing mortgage bankers, so this is a good a sign.
RMD contacted SWMC but couldn’t get any details about the re-launch, if you have any information please let us know.