MetLife Bank announced a new pricing option available through both its retail and wholesale channels for its fixed rate reverse mortgage product to make thousands more dollars available to borrowers at a lower cost.
This new pricing option, which applies to the HECM fixed product will eliminate the origination fee and servicing fee, meaning that borrowers could receive additional loan proceeds ranging from $3,500 to $10,000, or more said MetLife.
“This pricing option will allow seniors who desire to take their loan proceeds in an up-front lump sum to unlock even more of their equity to fund their retirement,” said Craig Corn, vice president at MetLife Bank in charge of the bank’s reverse mortgage business. “These additional proceeds can go further to help them to pay off existing debts, meet basic needs, cover unexpected expenses, adapt their home to their current needs, or whatever else they feel is appropriate.”
MetLife Bank will continue to make other options available to applicants, including variable rates and lines of credit, but for those who choose a fixed-rate lump-sum HECM, there will be no origination or monthly servicing fee said the bank.
Through its wholesale channel, correspondents will have access to the fixed rate at 5.56% with no servicing fee and a “limited origination fee” starting March 29th said the company in a message to brokers. Additionally, MetLife is offering correspondents the option of a fixed rate at 5.49% with a $20 servicing fee.
While both Security One Lending and Genworth recently eliminated their servicing fee for the HECM fixed product, MetLife is taking it a step further by eliminating the origination fee and offering an even lower rate. Our sources tell us that all lenders are currently selling their no servicing fee HECM fixed product to MetLife, so I’m sure this will start a trend of others eliminating their origination fee to remain competitive.
This is all great news for the borrower, lets just hope the secondary market execution stays where it’s so it will continue.