SOURCE: Reverse Mortgage Funding LLC

Reverse Mortgage Funding LLC

December 18, 2013 08:00 ET

Reverse Mortgage Funding Introduces HECM Choice

New Product Is the First Partial Draw, Fixed Rate HECM to Be Offered in the Industry

MELVILLE, NY--(Marketwired - Dec 18, 2013) - Reverse Mortgage Funding LLC announced today the launch of HECM Choice, the industry's first partial draw, fixed rate Home Equity Conversion Mortgage (HECM) product to be made available. Now, HECM Choice allows borrowers to take advantage of the benefits of a fixed rate HECM, but with the flexibility that has historically been offered only with an adjustable rate HECM loan.

"For the first time, we're offering a fixed rate loan with the option for the borrower to take only a portion of the money available at closing and still have access to the remaining principal limit," said Craig Corn, chief executive officer, Reverse Mortgage Funding. "Until now, all fixed rate HECM offerings have required borrowers to take all of the money up front in the form of a lump sum. Anyone wishing to take a partial draw had to choose a loan with an adjustable rate, which is not as appealing to many homeowners. HECM Choice provides improved cash flow while also satisfying the preference for a fixed rate product."

HECM Choice is being introduced within an evolving reverse mortgage market. In September 2013, the United States Department of Housing and Urban Development (HUD) revamped the HECM program in order to make it more sustainable. A full definition of the new requirements is available on HUD's website.

"We're looking at a new reverse mortgage industry," said Joseph DeMarkey, leader of the product development group at Reverse Mortgage Funding, and an integral player in the development of HECM Choice. "The changes that have been made are better for all of us -- the homeowner, the industry, and HUD. Now it is up to us to develop new products that fill the gaps and deliver the greatest benefits to the borrower. HECM Choice is one of those products. When you look at the differences between fixed rate and adjustable rate loans, HECM Choice is the best of both worlds. HECM Choice provides a more flexible loan structure to meet each borrower's individual needs."

"We will be rolling out HECM Choice in phases," said David Peskin, president, Reverse Mortgage Funding. "HECM Choice is immediately available for approved correspondent lenders, all of whom will receive training on HECM Choice over the next few weeks. Principal agents and brokers will have access to product training on December 19, and we expect to begin accepting loans for underwriting in January 2014. We believe this product will have a meaningful impact on the marketplace and feel a phased approach is best."

About Reverse Mortgage Funding LLC
Reverse Mortgage Funding LLC was established in July 2012 and is led by industry veterans Craig Corn, Robert Sivori, and David Peskin. These executives have an average of more than 15 years of experience in building and, most importantly, growing firms in the industry. The company has offices in New York and New Jersey. Learn more by calling (877) 820-5314 or visiting reversefunding.com.

Contact Information