Lender Lead Solutions was the first lender to release a LIBOR based reverse mortgage product and they continue to build upon their original release. Last week the company announced an expanded LIBOR 85 product offering within its Flex Margin Advantage product line. The LIBOR 85 basis point margin pays a premium to the broker and provides increased liquidity to the consumer.
“The LIBOR 85 reverse mortgage product has comparable principal limits to the CMT 100 and CMT 150, but provides a lower margin on the interest index than CMT-based products,” said David Peskin, chief executive officer of Lender Lead Solutions. “The product offers attractive pricing to our brokers, better liquidity to consumers and less interest rate risk for lenders. Additionally, our LIBOR Flex Margin Advantage product offerings have staying power and consistency which, given the climate of the secondary market, is critical.”
The Flex Margin Advantage product suite provides brokers with the ability to structure rates and loan terms on monthly HECM reverse mortgage loans in order to better fit the needs of their customers. Lender Lead Solutions’ LIBOR Flex Margin Advantage product suite offers margins from 75 to 200 basis points on LIBOR based HECM reverse mortgage.