Urban Financial of America has announced the company is now offering a new fixed rate reverse mortgage that offers all payment plan options. The Flexible Fixed Home Equity Conversion Mortgage is being offered exclusively by Urban as of Friday.
The top-10 lender is marketing the product as having the flexibility of multiple payment options with the stability of a fixed rate. The loan offers closed-end credit to borrowers.
“For your customers who prefer the certainty of a fixed rate, our Flexible Fixed HECM can be a great tool for paying off an existing mortgage or other debt, or to improve cash flow,” Urban says in its correspondence to brokers. Then, 12 months after the initial disbursement or thereafter, they can choose to receive a steady stream of monthly funds, or keep the remaining funds as a line of credit they can tap as needed. The choice is theirs.”
Urban further points to the credit line growth feature, providing more available funds over time.
The rollout of the Flexible Fixed HECM marks the latest among new products in the reverse mortgage market, on the heels of several product launches since December.
In December, Reverse Mortgage Funding introduced a fixed rate HECM that allowed borrowers to access remaining principal limit after a year post-loan closing under a fixed rate. Shortly thereafter, Live Well Financial introduced several other fixed rate HECM products offering borrowers additional payment plan options.
Both companies have reported early success in originating the new products.
Written by Elizabeth Ecker