FOR IMMEDIATE RELEASE
Media Contact: Jean Noble, j noble@ r e v e r s e f unding.co m, 631-270-3214
Reverse Mortgage Funding Launches Latest Innovative HECM Product
HECM MAX5 is industry’s first CMT-based monthly adjustable rate loan with a five percent lifetime cap over the initial rate.
Bloomfield, N.J. October 26, 2020— Reverse Mortgage Funding LLC (RMF) announced today it has launched its HECM MAX5 product to help provide borrowers with peace of mind against future interest rate increases.
“As the industry transitions to the Constant Maturity Treasury (CMT) index, we saw a unique opportunity to introduce the HECM MAX5. Like our previous MAX5 which was based on LIBOR, this product can provide borrowers additional options and offers greater protection against rising interest rates over the life of the loan,” said David Peskin, President of RMF.
The HECM MAX5 is the industry’s first monthly adjustable rate, CMT-based Home Equity Conversion Mortgage with a lifetime cap of five percent over the initial rate. With the HECM MAX5, there is no change in the proceeds available to the borrower and all payment plan options are available, but with increased protection against potential interest rate increases.
According to Mark O’Neil, National Sales Leader of RMF’s Wholesale and Correspondent business channel, “We’ve been working closely with our secondary markets teams and based on our internal analysis and feedback from Wall Street, we feel there is a great opportunity for a monthly ARM with the same 5% upside protection that borrowers found attractive with the HECM annual.“
As with other variable rate HECM loans, borrowers can choose a lump sum draw, line of credit, monthly payment, or combination of these. The HECM MAX5 is an open-ended loan with no minimum initial draw that has a five percent lifetime cap over the initial interest rate, which is based on the one-year CMT Index.
“We continue to create new ways to best serve our clients and are committed to helping qualified seniors achieve their financial goals,” said Joe DeMarkey, Strategic Business Development Leader, for RMF.
About Reverse Mortgage Funding LLC
Established in 2012, Reverse Mortgage Funding LLC (NMLS ID #1019941) is one of the nation’s largest GNMA issuers of reverse mortgages and a recognized industry thought leader. RMF focuses on originating, acquiring, investing in, and managing reverse mortgage loans and securities backed by reverse mortgage loans. The company is headquartered in New Jersey, with corporate offices in New York and California and field offices throughout the U.S. RMF is a wholly owned subsidiary of Reverse Mortgage Investment Trust Inc. (RMIT), a specialty finance company in the reverse mortgage sector. Pending regulatory approval in 2020, RMIT will become part of the Starwood Capital Group, a global private investment firm and an innovator in non-agency mortgages, helping grow the industry into the success it is today. This relationship will afford RMF the unique ability to develop new product lines and create strategic partnerships within the Starwood family of companies.
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