Bank of America announced to wholesale reverse mortgage customers it will pay 50% of the upfront Mortgage Insurance Premium (MIP) on all HECM fixed rate transactions.
The new policy is effective April, 16 said the company in a statement to brokers.
“In an effort to continue to drive additional benefit back to senior borrowers, this product enhancement, along with our recently introduced $0 servicing fee, will assist you in providing innovative and cost-effective options to your customers,” said the company.
In addition, the Bank of America is improving pricing on the fixed rate reverse mortgage pricing by 20bps. The new policy is only for its HECM fixed products, the adjustable rate HECM still requires the 2% insurance premium.
Bank of America is the 2nd largest reverse mortgage lender in the country and according to data from HUD has endorsed 4,445 HECMs during FY 2010.