MetLife Bank NA has announced a new pricing option that eliminates the origination and servicing fees for Home Equity Conversion Mortgages (HECMs). According to the bank, dropping the fees will translate into additional loan proceeds to borrowers ranging from $4,500 to $10,000.
MetLife Bank will continue to make other options available to applicants, including variable rates and lines of credit, but for those who choose a fixed-rate lump-sum HECM, there will be no origination fee or monthly servicing fee under this option.
‘Savings will vary by the individual case, but senior borrowers can end up with a lot more money in their pockets,’ says Craig Corn, vice president at MetLife Bank in charge of the bank's reverse mortgage business.
Other closing costs will still apply, including a Federal Housing Administration mortgage insurance premium, and costs from third parties including title search and insurance, appraisal, inspections, recording fees, mortgage taxes and credit checks.
Earlier this week, Pentagon Federal Credit Union and Sun West Mortgage announced they will jointly pilot, on a regional basis, a similar HECM program that eliminates origination and servicing fees.
SOURCES: MetLife Bank