Last week Financial Freedom announced that they are expanding their LIBOR based reverse mortgage programs. Initially, FF came out with their monthly LIBOR 65 product and now they added the HECM Monthly LIBOR 75 and HECM Monthly LIBOR 85.
“We are focused on continually developing new products that offer seniors a range of options to meet their financial planning needs,” said Michelle Minier, CEO of Financial Freedom. “In today’s rate environment these additional margin options on HECM Monthly LIBOR reverse mortgages will give borrowers the option to realize a somewhat higher cash benefit, a larger monthly payment, and, in some cases, a reduced origination fee at an interest cost that is slightly higher than the HECM Monthly LIBOR 65, but, based on historical index values, is lower than the industry-dominant CMT-based HECM product.”
We continue to see the reverse mortgage industry continue to trend toward LIBOR based products but the HECM 100 is still the most dominant product. I would guess that in the next 6 months you will start to see it decline because I’ve been noticing a few lenders who are defaulting to LIBOR based products when you run scenarios through their systems. To read a copy of the full press release click the link beow.