If your HECM ARM loan does not fund by the internal RMF December 2020 cutoff, then your RMF loan specialist will need to redisclose and reprice your loan using the new index. Your loan specialist can walk you through this process and he/she will communicate all the details.
Additionally, we want to make sure your new CMT quote closely mirrors your original LIBOR-based loan. Your loan will be priced out to match your original principal limit. Additionally, we'll endeavor to have your closing costs match what was quoted in the original quote.
Just a reminder, historically, LIBOR vs CMT index closely mirror one another. Over a ten-year period, the indices are close. In fact, the rates for the CMT have been lower during this time frame.