Following other recent proprietary product development news, Лонгбридж Финансовый announced on Friday the launch of a new variation for its private fixed-rate reverse mortgage offering.
The Platinum Peak product suite aims to offer higher available loan-to-value (LTV) ratios, which are designed to translate into higher loan proceeds for borrowers, according to the announcement. The Peak variation also updated seasoning requirements for Platinum-to-Platinum or proprietary-to-Platinum to 24 months, from one closing date to the next.
The new variation will also allow Longbridge partners to reengage with borrowers who may have previously been short to close. The revised LTVs could allow previously ineligible borrowers to have a renewed conversation about securing a loan, the company explained.
Longbridge said that Platinum Peak could make a difference for younger borrowers between the ages of 62 and 70, since a higher amount of loan proceeds has the potential to translate into benefits specific to that cohort.
Platinum Peak is now available in at least two reverse mortgage loan origination systems (LOS) for brokers, according to the company. Principal agents and closed loan sellers can request their LOS administrator to add the product to their available menu. However, the variations offered to brokers and principal agents differ. Originators can contact their account executive for more information, the company said.
Earlier this year, Longbridge announced that it lowered the minimum home value for its fixed-rate proprietary products. Previously, the Platinum line aligned its minimum amount with Федеральное жилищное управление (FHA) lending limits.
In January, the company shifted to allow for properties with a minimum appraised value of $450,000 for fixed-rate products. Clients with current in-process Home Equity Conversion Mortgage (HECM) applications can shift their application to a Platinum product if they choose, but it would require some application processes to be revisited.
At that time, Longbridge CEO Chris Mayer told ЖильеПроволока’s Reverse Mortgage Daily (RMD) that there are use cases for reverse mortgage proceeds for some borrowers that may not be best addressed by a traditional FHA-backed HECM.
“There are people who have loans where they have a mortgage and they’re short to close, and the only way they’re going to be able to close is getting enough proceeds,” Mayer explained.
“There are borrowers who want to draw more money for their own reasons, like wanting to buy a second home, or to fix up their home, and they can’t get enough proceeds out of a HECM to do that.”
Given where the proprietary market is, Longbridge identified an opportunity for these borrowers to consider Platinum over a traditional HECM if their situation fits, Mayer said.
This partially stems from a lack of updates to the HECM program by FHA to “reflect the complete impact of interest rates on the HECM program,” he said at the time.
Other reverse mortgage lenders continue to bet big on proprietary products.
Финансы Америки (FOA) has made the growth of its HomeSafe proprietary product suite a centerpiece of its growth goals for this year. In March, it reported a sharp increase to its distribution figures for its proprietary closed-end second-lien reverse mortgage, HomeSafe Second.
Leading HECM lender Взаимная ипотека в Омахе announced this week that it has launched its own proprietary reverse mortgage product called SecureEquity, with initial availability in Калифорния и Флорида.
Other lenders active in the proprietary space include Университетский банк, Жилищные кредиты Smartfi и Nationwide Equities.
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