1st Reverse Financial Services, LLC (1st Reverse), a subsidiary of Family Federal Savings of Illinois, recently announced enhancements to their Fixed4Life-XLTM and FLEX-XLTM proprietary products. The jumbo products are exclusively available through 1st Reverse’s Wholesale Correspondent Lending Program.
I originally covered the products in August of last year, but the latest enhancements make the products even more competitive. The breakdown of the new enhancements are:
- Loan amounts available to $20MM
- Can be used for home purchases
- Available for second homes
- Products available to non-FHA approved brokers
- Compensation enhancements
“We believe that our Proprietary Loan Product programs represent the next wave of innovation in the reverse mortgage marketplace” said Ralph Rosynek, President of 1st Reverse. “Since we released the enhancements to the programs, we are finding many seniors with higher valued homes can now truly experience the full power of a reverse mortgage loan.”
According to the press release, 1st Reverse will typically pay the routine closing costs and fees associated with a reverse mortgage loan with the borrower only paying an origination fee (and any specific state or municipal taxes, costs or fees), on the Fixed4Life XLTM program. Additionally, there is no servicing set-aside calculation. These enhancements effectively increase the available proceeds for the borrower while lessening their initial outstanding loan balance. The FLEX-XLTM ARM version does require the borrower to pay the full direct closing costs and origination fees.
The new product enhancements also enable non-FHA approved brokers to originate their proprietary products themselves. “Many of our approved HECM-advisor partners are very excited to have new products that can serve a different customer profile and creates a significantly greater origination fee than is possible under the HECM-advisor program” said David Cesario, Executive Vice-President of 1st Reverse. “We are being contacted in ever growing numbers by non-FHA approved banks, brokers other lenders seeking our Proprietary Loan Product programs.” To read a copy of the press release click the link below.