Security One Lending (S1L) has just released its Security Saver Fixed Rate HECM with no monthly servicing fee. The purpose of the program is to meet the growing market demand for a lower cost reverse mortgage transaction and to enhance the amount of proceeds to the consumer said S1L.
“Many leaders in both the reverse mortgage Industry and Government have been working to overcome one of the biggest objections to the reverse mortgage transaction-cost. This revolutionary program will also, partially, offset the loss in loan proceeds that resulted from the principle limit reduction.” said Torrey Larsen, President of Security One Lending.
“Our relationship with the consumer remains our top priority, and the consumer is looking for ways in which they can save money and reduce overall costs. I believe this to be a progressive way in which that goal can be accomplished”
According to an example provided by S1L, a $200,000 loan, using a 70 year old single borrower, will provide the client $5000 in additional proceeds, when compared to the standard $30 monthly servicing fee. (note: comparison was run at 5.56% Fixed Rate)
The program will be made available to both its retail and wholesale channels starting today.