Financial Freedom is officially starting to phase-out the HECM 100 and HECM Advantage products. They recently sent out information to its correspondents that set out the timetable under which that suspension will be phased in.. They did note, that at any point, market conditions improve to the point that we judge the 100 and Advantage programs to be sustainable, they will promptly advise us and modify or terminate the phase-out schedule as applicable. They will still be offering the standard HECM 150.
This shouldn’t be a surprise as we have seen other lenders stop offering the product starting at the end of last month. The phase-out method is a much better alternative to just halting all funding of the program like a few lenders did. While they may be discontinuing the HECM 100 and HECM Advantage, Financial Freedom is also planning to release their new HECM Fixed this Wednesday and a Libor based product by the end of the month. Be sure to stay tuned to RMD for the latest updates on the products.