Irvine, Calif.-headquartered Financial Freedom Senior Funding Corp., a subsidiary of IndyMac Bank F.S.B. and the nation's largest lender of reverse mortgages, has added two new Home Equity Conversion Mortgage (HECM) LIBOR margin options to its product suite: HECM Monthly LIBOR 75 and HECM Monthly LIBOR 85.
The interest rate for these products is calculated based on the one-month LIBOR index plus the margin and provides borrowers with all the features and benefits of other HECM reverse mortgages. In addition to offering benefits to seniors, LIBOR-based products hold great appeal to secondary market investors, Financial Freedom states. As most investors have LIBOR-based funding costs, and thus seek LIBOR-based investments, the secondary market for LIBOR-based HECM should be broader and more reliable than that for Treasury-based HECM.
The company launched HECM LIBOR Monthly 65, the industry's first LIBOR-indexed HECM, in October of 2007.