Only a few weeks after releasing a no origination and servicing fee fixed rate reverse mortgage product, MetLife announced to wholesale partners it’s lowering margins for adjustable rate HECM products.
Previously the company offered margins ranging from LIBOR 250 to LIBOR 325 for its adjustable rate reverse mortgage products, but is now lowering margins to LIBOR 175 and LIBOR 200 through its wholesale channel.
“Pricing levels for these products will be comparable to or better than our current offerings, allowing your borrowers the benefit of a lower interest rate and greater loan proceeds with no negative impact to you,” said the company in a notice to brokers.
Unlike its fixed rate HECM product the company rolled out a few weeks ago, the adjustable rate product still include an origination and service fee set aside. However, RMD has learned its retail division started offering an adjustable rate product without an origination fee to consumers.
The decision to slash the origination fee is most likely in response to Wells Fargo eliminating both its origination and servicing fee for both adjustable and fixed rate HECM products. However, MetLife is offering a lower margin product than Wells, which as of last week was at 2.20%.