Financial Freedom Launches Fixed-Rate HECM Reverse Mortgage

Financial Freedom, a subsidiary of Irvine, Calif.-based IndyMac Bank FSB, has introduced a fixed-rate Home Equity Conversion Mortgage (HECM) – its first government-insured, fixed-rate, closed-end reverse mortgage.

Because the closed end structure offers the investor more predictability as to cashflows, which is critical for match-funding a fixed rate instrument, Financial Freedom says the product is expected to appeal to the secondary market.

The ability to achieve strong, reliable execution in the secondary market ultimately lowers costs for the consumer, the company adds. It also creates more product access as more lenders, attracted by the viable business opportunity, begin to offer the products on their platforms.

Financial Freedom's fixed-rate HECM offers the certainty of a fixed interest rate for the life of the loan and expands the company's product menu, which includes variable-rate HECM products and Financial Freedom's proprietary Cash Account Advantage (a jumbo reverse mortgage). The company plans to launch a fixed-rate proprietary jumbo during the fourth quarter.


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