Reverse Mortgage Funding Introduces HECM Annual
Company Expands Product Suite with Annually Adjusting Reverse Mortgage
Bloomfield, N.J., July 2, 2014 — Reverse Mortgage Funding LLC (RMF) today announced it has launched its latest product, HECM Annual, to further extend its product line. This product introduction complements RMF’s existing product portfolio, allowing the company to offer its partners a full range of products to best meet their customers’ needs.
The HECM Annual is similar to RMF’s innovative HECM Max5, introduced last month, in that both loans have a five percent interest rate cap. The HECM Annual applies that five percent rate cap to the company’s first annually adjusting HECM.
The HECM Annual interest rate is tied to the One-Year LIBOR Index and has a lifetime cap of five percent above the initial rate. The loan also features a two percent “interval cap,” ensuring that the rate will neither increase nor decrease by more that two percent in any given year. With the HECM Annual, all payment plans are available.
“We believe reverse mortgages can be a powerful tool for qualified borrowers. This product extension means more options for adult homeowners,” said Joe Demarkey, director of product development, RMF. “In addition to innovative products, which are the cornerstone of our company, we continually review our portfolio against industry standards to ensure we are offering our customers the best options.”
As with other variable rate HECM loans, borrowers can choose a lump sum draw, line of credit, monthly payment, or a combination of these. The HECM Annual is an open-ended loan with no minimum initial draw that has a five percent lifetime cap over the initial interest rate, which is based on the One-Year LIBOR Index.
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.