Yesterday I was sent some program guidelines for Bank of New York‘s new HECM 100* product that I had mentioned a few days ago. There are two differences between the HECM 100 and the FHA HECM.
1.) Margin = 1.00% This is .5% lower than the standard FHA program. What this means is the borrower has roughly about $8,000 more equity available to them just by choosing this program.
2.) Servicing fee of $35 This is $5 higher than the FHA HECM fee that is charged each month for the servicing of the loan.
A part of me was expecting a few more differences between the HECM 100 and the FHA HECM but I cant complain. It’s great to see a lender that is starting to differentiate themselves from the rest out there. With that said expect to see other lenders releasing new products in the near future. How near you ask? I have heard that we will be seeing a new product being released on Monday from one of the nations largest lenders… well see.
I give Bank of New York a lot of credit for being the first one to seperate themselves for the pack but I can guarantee they will be making some more changes very soon.
Have a great weekend!
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*HECM 100 is a registered trademarked by Bank of New York Mortgage