Just when you thought the HECM 100 was really gone…
Today, Financial Freedom announced that they plan to offer the HECM 100 indefinitely. The announcement noted that over the past two weeks there has been an improvement in secondary market conditions in regards to CMT based HECM loans. While the market has not yet completely recovered, One-Year CMT+100 has climbed above One-Month LIBOR for the first time since mid-August.
This is great news for FF, because I’ve received a handful of emails from brokers who were looking for a new wholesaler because FF stopped offering the HECM 100. I’m not knocking FF in anyway, but it was the first time a lot of mortgage brokers had to look somewhere else for reverse mortgage production outlets.
Incase you forgot, in late August a handful of lenders announced that they wouldn’t be offering the HECM 100 anymore, and it looked like the industry was going to shift towards a LIBOR based reverse mortgage product. Are we still going to see LIBOR based HECMs from Financial Freedom? Lender Lead Solutions? Who knows… but I bet we will see more announcements from other lenders announcing the return of our good old HECM 100.