Reverse Mortgage Funding LLC (RMF) announces the release of their proprietary product’s—Equity Elite®— line of credit option
Reverse Mortgage Funding LLC (RMF) announces the release of their proprietary product’s—Equity Elite®— line of credit option
BLOOMFIELD, N.J. – August 17, 2020 – Reverse Mortgage Funding LLC, one of the nation’s leading reverse mortgage lenders, today announced the launch of its proprietary product’s line of credit option. The Equity Elite® Line of Credit is a powerful financial tool geared towards the unique needs of those age 60* and older. It combines the power of a traditional Home Equity Line of Credit (HELOC) and the flexibility of a reverse mortgage into one versatile product—and has attractive advantages over other proprietary lines of credit.
“Older Americans enjoy the comfort and security of having an emergency line of credit in place to help fund the unexpected. And let’s face it, we are living in unexpected times. But traditional home equity loans can have shortfalls for those age 60 and older—as lending requirements are stricter and minimum monthly payments are mandatory,” said David Peskin, President of RMF. “So, we designed the Equity Elite® Line of Credit option with flexibility and more than just one type of customer in mind.”
Continued Peskin, ”We are thrilled to be able to bring our proprietary line of credit product to the table at a time when so many older consumers are looking for a financial safety net and added stability in their retirement plan.”
The Equity Elite® Line of Credit option boasts the benefits of a HELOC and conventional reverse mortgage, plus:
- A reusable line of credit that grows at 1.5% annually for 7 years†
- Access to more available funds for borrowers with higher-value homes—up to $3 million
- No mortgage insurance premium, meaning low up-front costs
- No pre-defined loan maturity date unlike a HELOC‡
The Equity Elite Line of Credit option is initially available in California and Florida through RMF’s retail and third-party origination (TPO) broker channels. The product option will be expanded to additional states over the next several months.
“The launch of this product is timely and helping to satisfy the needs of the public. RMF’s top priority is to expand its availability across the nation,” says Mark O’Neil, National Sales Leader of RMF’s Wholesale and Correspondent business channel, “we see this product as an attractive alternative to HELOCs and want as many to benefit as possible.”
About Reverse Mortgage Funding LLC
Established in 2012, Reverse Mortgage Funding LLC (NMLS ID #1019941) is one of the nation’s largest GNMA issuers of reverse mortgages and a recognized industry thought leader. RMF focuses on originating, acquiring, investing in, and managing reverse mortgage loans and securities backed by reverse mortgage loans. The company is headquartered in New Jersey, with corporate offices in New York and California and field offices throughout the U.S. RMF is a wholly owned subsidiary of Reverse Mortgage Investment Trust Inc. (RMIT), a specialty finance company in the reverse mortgage sector. Pending regulatory approval in 2020, RMIT will become part of the Starwood Capital Group, a global private investment firm and an innovator in non-agency mortgages, helping grow the industry into the success it is today. This relationship will afford RMF the unique ability to develop new product lines and create strategic partnerships within the Starwood family of companies.
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NOT FOR CONSUMER USE.
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
*Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details.
†For the Equity Elite (EE) loan option with a growth rate on a line of credit, there is a specific growth rate, such as 1.5% per annum applied to certain unused amounts, and a growth rate period, such as 7 years after the loan closes, as stated in the loan documents provided at closing. Also, access to funds in an Equity Elite loan with a line of credit feature cannot exceed: (1) 75% percent of the original Principal Limit, plus (2) the growth of the available Principal Limit due to the growth rate.
‡As with any mortgage, borrowers must meet loan obligations, keeping current with property taxes, insurance and maintenance.
Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example, 30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs.
©2020 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www.nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker-NYS Department of Financial Services -in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender; Texas Mortgage Banker Registration in-state branch address 6044 Gateway East, Suite 236, El Paso, TX 79905. For California consumers: For information about our privacy practices, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L3464-Exp082021
