Magazine article Mortgage Banking

Financial Freedom Launches Fixed-Rate HECM Reverse Mortgage

Magazine article Mortgage Banking

Financial Freedom Launches Fixed-Rate HECM Reverse Mortgage

Article excerpt

Irvine, California-based Financial Freedom, a subsidiary of Pasadena, California-based IndyMac Bank FSB, has announced the introduction of Financial Freedom's HECM (Home Equity Conversion Mortgage) Fixed Rate Product, its first government-insured, fixed-rate, closed-end reverse mortgage.

Because the closed-end structure offers the investor more predictability as to cash flows, which is critical for match-funding a fixed-rate instrument, Financial Freedom's HECM Fixed Product is expected to appeal to the secondary market, according to Michelle Minier, Financial Freedom's chief executive officer.

"We've worked extensively with industry leaders to clarify the rules governing fixed-rate HECMs in order to achieve a product that meets seniors' needs, and which we believe will lead to the development of a strong secondary market for the product," said Minier. "We expect that other lenders will embrace and replicate this closed-end, fixed-rate HECM Product, making it the industry standard fixed-rate model."

For the industry, having a reverse mortgage that appeals to the secondary market is critical to the long-term success of the product. …

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