Fixed-rate HECM

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Spotlight: Farewell to the Fixed-Rate

Feb 18, 2013By

The reverse mortgage industry has weathered many changes in the past few years, evolving from a single secondary market option on ARM loans at one margin rate (CMT 150) to a majority fixed-rate product sold into HMBS pools and then into HREMIC securitizations. Through it all, there have been countless changes to premiums, fees, principal limits, rates and regulatory requirements. New products have been introduced (Saver, Purchase) and new customer segments explored that were nice afterthoughts during the industry’s peak volume years in 2008 and 2009. The latest change coming down the pipeline is the curtailment and potential elimination of