This week, all Treasury-based HECM’s with a margin of +187 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +118 or less. Using these margins, the initial note rate on a LIBOR HECM will be 28 bp less than that on a Treasury HECM.
See below for the quick effect of the Fannie Mae bailout (-.52% change), the rates as of 9/9/08 are:
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