Financial Freedom announced to wholesale customers that it has enhanced its HECM Fixed Rate product by offering a lender paid credit to borrower closing costs on all refinance transactions. The new product will be available starting June 3, 2010 and was designed to maximize flexibility for loan originators and provide better tools to capture interested reverse mortgage borrowers.
”By providing a lender credit to the borrower, we are effectively reducing the total closing costs paid by the borrower making the refinance more affordable while increasing the available loan proceeds,” said the company.
The enhanced HECM fixed also includes a lower rate of 5.39% and no servicing fee. The lender credit can be used to reduce the loan origination fee charged and or the initial up-front HUD required Mortgage Insurance Premium.
A lender-paid credit is not available for HECM for Purchase transactions, in accordance with HUD guidelines said Financial Freedom.
The news comes after Bank of America announced it would be paying the entire upfront MIP for consumers for its HECM fixed product and Sun West’s decision to release a “zero fee” HECM fixed last week.
