Live Well Releases Fixed Freedom Reverse Mortgage Product

Following several recent reverse mortgage product roll outs, Live Well Financial today announced another new Home Equity Conversion Mortgage Product and an open-end, fixed-rate option for borrowers. 

The new product, the HECM Fixed Freedom requires no minimum draw upon loan closing, access to the full principal limit under various plan options, a set fixed rate, and an open-end product. The announcement comes on the heels of a product announcement this week from Reverse Mortgage Funding that allows borrowers the option of the full array of payment plans at closing, all under a fixed rate. 

The option to take a line of credit at a fixed rate presents a “sea change,” and is different from other available reverse mortgage options in the past or present, says Live Well senior vice president Jim Cory. 

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“The introduction of open-end fixed rates combined with the flexibility of the payment plan options with the HECM Fixed Freedom represents a sea change in our industry,” he says. “Most importantly, our borrowers will be the primary benefactors of this added flexibility, however this will also go a long way to leveling the playing field between brokers and lenders.” 

Loan originator compensation rules under the Federal Housing Administration allow for different compensation structures depending on whether a loan is considered open end credit or closed end credit.

“For approved brokers, this means no more closed-end loan originator compensations plans are necessary,” Live Well explained in announcing the product. 

Since December, Live Well has released four new fixed-rate HECM products including theFixed Freedom, Fixed Lump Sum, the Fixed Advantage, and the Fixed Fourtune

Written by Elizabeth Ecker

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    • Hi Raymond –
      It’s not the “hybrid” that has been talked about in past months because it doesn’t combine a fixed rate with an adjustable rate loan. In order for an lender to offer that type of loan, HUD would need to change the program rules.

      Instead, this is a fixed-rate reverse mortgage that offers open-end credit to the borrower. It’s still a fixed-rate loan.

  • So a Fixed rate with no required draw at closing, and the rate is what……..8%, 9%?????? Same question with RMF’s product. Great product for the die hard…”gots to have me a fixed rate” or for the loan officer who doesn’t know how to present a LIBOR product

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