Live Well Launches New Fixed “Fourtune” Reverse Mortgage Product

Live Well Financial is rolling out a new fixed rate Home Equity Conversion Mortgage, the “Fixed Fourtune,” following another recent product rollout last month.

The new product allows borrowers to access the full principal limit within program guidelines and disburses the remainder of the available funds in four annual draws spread over a four-year period, while adhering to Federal Housing Administration program requirements.

It’s similar to Live Well’s Fixed Advantage in that it allows borrowers to take a fixed rate reverse mortgage with access to additional proceeds after the initial draw and one-year post-closing period has passed. The company says its initial product launch was well received.


“The launch of the HECM Fixed Advantage has been very successful and well received by lenders and borrowers. We are excited to add the Fixed Fourtune program as a complement to the Fixed Advantage, which we believe will be used as a planning product to help borrowers who have less of an immediate need for funds and prefer to receive their proceeds over time,” said Bruce Barnes, Executive Vice President of Live Well.

Live Well also stressed that the products are compliant with FHA guidelines as they are Home Equity Conversion Mortgages.

“Both Live Well HECM Fixed Rate programs are fully compliant with FHA guidelines and the funding options are consistent with the utilization restrictions implemented by FHA,” Barnes said. “We believe both products are essential to meet the needs of different borrower profiles in the marketplace, and provide lenders with options to properly help borrowers choose a reverse mortgage program that is best suited to meet the borrower’s needs.”

Written by Elizabeth Ecker

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  • Allowing limited exposure to interest rate arbitrage in order to avoid the harsh cutoff of remaining proceeds (if any) that could result from a closed end mortgage combined with the one year disbursement limitation, gives a distinct advantage to those offering these products over those who do not.

    The industry drawback is that now lines of credit can be required to be terminated before the related fixed rate HECM goes in the due and payable status. Those offering modified fixed rate lines of credit will now have to distinguish between the two types of the credit lines in their presentations to prospects.

    Now will the new credit lines grow and as long as they are available will pay downs increase the available line of credit as with HECM ARMs? It will be interesting to see how these modified lines of credit work.

    It still seems a hybrid product is a much better answer.

    • The_Cynic —
      To the extent that these “new products” exploit loopholes in HUD’s new HECM rules and move industry competitive dynamics in favor of fixed-rates, there is no advantage to consumers, to the MMI Fund, and to the industry.
      Besides, the proliferation of these so-called products will confuse consumers. HUD needs to check this disturbing trend.

  • Atare,

    While fixed rate HECMs present their own problems, the concept of having all proceeds available to borrowers is helpful to the borrowers; however, hybrids would be far more preferable.

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