1st Reverse Financial Services announced yesterday that it will start taking applications for its new jumbo reverse mortgage product starting March 25, 2009. The FLEX-XL™ will initially be available to retail customers and a select group of correspondent before it’s opened up to everyone said President Ralph E. Rosynek.
The FLEX-XL is an adjustable rate LIBOR based product that can be used to purchase or refinance a borrowers home said . Counseling is required and will be conducted by the IAMP-MEF (Illinois Association of Mortgage Professionals – Mortgage Education Foundation).
When RMD spoke with Rosynek, he said the FLEX-XL will be more conservative than some of the past jumbo products and isn’t meant to compete with the new higher HECM loan limits. “The product was designed to meet the needs of high value properties in excess of $1.5MM which the current HECM limits do not address,” said Rosynek.
According to a company statement, younger ages can expect to see LTV ranges of 15 to 20% and older borrowers can see 30 to 35%. The company is still working out the final details but will have a calculator to run scenarios soon.
Rosynek said its parent company, Wilimington Savings Fund Society will hold the jumbo loans on its balance sheet with hopes of eventually selling them to the secondary market. “Our parent WSFS Bank, FSB, continues to support our growth in the marketplace and the strength of WSFS’s balance sheet affords 1st Reverse the opportunity to assist an even larger market of senior’s in their desire to remain in their homes,” said Rosynek.
During the initial roll out, the FLEX-XL will be available in 28 states through current retail and wholesale/correspondent channels. For more information check out the link below.