[vimeo id=”140457924″ width=”625″ height=”352″] Reexamining HECM Fund Distributions & Loan Recommendations Today’s interest rates are at historic lows providing reverse mortgage borrowers with extraordinarily low rates. The borrower has a small mortgage balance to pay off. Should they secure this rate with a fixed rate HECM to take advantage of
There was a rush to market by a handful of lenders to offer fixed rate variant products which still fell within the guidelines of the federally insured reverse mortgage or HECM program. While FHA has not directly addressed these new products Ginnie Mae has.
[vimeo id=”90920562″ width=”625″ height=”352″] What once worked may be problematic today Oddly our topic that every problem once was a solution reminds me of the now extinct standard fixed rate HECM. It was a solution to borrowers seeking maximum funds or a guaranteed interest rate which became a problem loan
FHA eliminated the Standard Fixed Rate HECM. So what loan are borrowers overwhelmingly choosing? A look at borrower behavior and motivations.
Will we see a substantial reduction in new applicants without the Standard Fixed Rate? We may not. Here's why...
The fixed rate HECM is wildly popular and now many banks are eliminating fees for consumers. The question is are we fully informing our borrowers about the advantages and disadvantages of the fixed versus the adjustable rate?