Financial Freedom announced to correspondents on Friday that it’s rolling out the lowest fixed rate reverse mortgage product in the industry. Starting immediately, the company is offering a fixed rate HECM at 5.39% which “will save your borrowers thousands of dollars over the life of the loan” said Financial Freedom in a notice to brokers.
The new HECM fixed product includes zero servicing fees and no cap on the origination fee besides the max amount allowed by the US Department of Housing and Urban Development. “We are in an industry under close scrutiny by both regulators and the public, we wanted a program that would be most beneficial to the senior and still profitable for our broker partners,” said the company.
According to one of its account executives, the company has other product innovations in the works that will hopefully be available in the next few weeks. No word on exactly what kind of “innovations” they’re planning.
While Financial Freedom was the top reverse mortgage wholesale lender in 2009, its volume was down 45% from 2008. Volume continues to trend downward, will the new fixed rate product help? Only time will tell.