RMF Announces New HECM Choice Reverse Mortgage Payment Plan Options

Following the release of a new Home Equity Conversion Mortgage, the “HECM Choice” in December, Reverse Mortgage Funding announced this week it has expanded the product to offer all payment plans at loan origination.

The product, which lays claim to being the first partial draw fixed-rate reverse mortgage released after Department of Housing and Urban Development program changes took place in late 2013, allows borrowers to access an upfront draw at origination and additional payment plan options after the first year post-closing—under a fixed rate loan.

The HECM Choice now allows borrowers to select any payment plan at origination and access the full principal limit.


“We’re offering a fixed-rate loan with the option for borrowers to choose any payment plan at origination,” says Joe DeMarkey, director of product development for Reverse Mortgage Funding. “For originators, this means simplicity; these are exactly the same payment plans offered with adjustable-rate loans. And for homeowners, it truly means they can have the security of a fixed-rate loan, plus greater flexibility. This expansion is designed with borrowers in mind.”

RMF has released the product to all business channels, who say the options are appealing to borrowers by offering flexibility and additional choices to the standard HUD product.

“HECM Choice was the perfect solution for our borrower,” said Teresa Herron, senior vice president and director of reverse mortgage lending for Homeowners Mortgage. “It gave him the flexibility he needed with all the benefits of a fixed rate. The process was very easy and we received our endorsement from the Federal Housing Administration (FHA) with no issues whatsoever. Now, with all payment options available at origination, we see HECM Choice from Reverse Mortgage Funding as an important product in our portfolio.”

The HECM choice is a FHA-insured product released in December. Since its release, additional HECM products have been offered by other lenders, expanding the options available to borrowers.

Reverse Mortgage Funding launched in August 2013 under the leadership of several former MetLife Bank executives and industry veterans including Craig Corn, Robert Sivori and David Peskin.

Written by Elizabeth Ecker

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  • Elizabeth,

    Can you provide more insight into how the loan is structured? Is the interest rate generally higher than most fixed interest rates in the industry at the time of closing? Is the fixed interest rate on all draws the same as the expected interest rate at initial funding or does it float and fix when the next draw is taken with that rate only applying to that draw. Is there a growth in the line of credit? Is the loan in any way closed end?

    There are many questions about the product. In many ways it looks more intriguing than the fixed/ARM hybrid.

    Product details would be helpful.


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