Reverse Mortgage Funding has added yet another Home Equity Conversion Mortgage (HECM) product to its growing stable of loan offerings.
On Friday, RMF will launch its latest product, the HECM MAX5, a monthly adjustable-rate HECM that lets borrowers access the same amount of money as a traditional monthly adjustable-rate HECM, but reduces the lifetime interest rate cap to 5% over the initial rate, the company stated in a letter to correspondent lenders Thursday.
The company has recently introduced the HECM Choice; a fixed rated, closed-end credit product that allows for future draws by the borrower and allows for all payment plan options for that loan.
The new HECM MAX5 offers both a lower initial interest rate and a lower lifetime cap as compared to an annually adjustable HECM. RMF pointed to the added borrower benefit of protection against rate increases over time.
With the exception of the lifetime cap, the product features of the HECM MAX5 are identical to the current monthly adjustable-rate HECM in that it offers all payment plan options, as well as an open-ended loan with no minimum initial draw and a rate based on the one-month LIBOR index.
The new product will be available Friday, May 9 in Reverse Vision. RMF will hold training webinars May 8-9 and May 12.
Reverse Mortgage Funding, a relative reverse mortgage newcomer led by a fleet of industry veterans, has reportedly raised $230 million in capital as privately held shares of a real estate investment trust. The company has not commented on speculation by a New York Times article published this week that pointed to a possible future public offering of the company’s shares.
Written by Jason Oliva