More lenders have jumped onboard the latest reverse mortgage lending trend – fixed-rate, home equity conversion mortgages (HECMs) with no origination or servicing fees.
Atlanta-based Generation Mortgage Co., the largest privately owned reverse mortgage retailer and wholesaler in the U.S., and Financial Freedom, a OneWest Bank subsidiary, are the latest to offer such products. They join MetLife Bank NA and Pentagon Federal Credit Union, which both announced similar product offerings last week.
‘We are very happy to provide access to more equity to our senior clients with these new changes,’ says Scott Peters, president and CEO of Generation Mortgage. For its wholesale channel, as of April 1, Generation Mortgage began offering its brokers and correspondents a fixed-rate HECM loan product option with no servicing fee and no origination fee.
Financial Freedom says its product, the Financial Freedom Senior Saver, is estimated to save seniors between $3,500 and $10,000 in fees. The company has additionally announced a reduction of the interest-rate margin on its HECM LIBOR from 250 basis points to 175 basis points. On a typicalÂ $150,000 reverse mortgage, the reduction of the margin will provide the borrower with an additional benefit of approximately $10,000, the lender says.