As the industry continues to shift from CMT to LIBOR based reverse mortgage products EverBank Reverse Mortgage recently announced the release of their LIBOR based HECM product. The product will offer seniors five different margins of 1.00%, 1.125%, 1.25%, 1.375% and 1.50%.
We started seeing LIBOR based reverse mortgages a few months ago and according to Joe DeMarkey, VP – Director of Corporate Development for EverBank Reverse, there were two reasons they delayed releasing the product. “As the interest rate environment has started to normalize itself this month, LIBOR HECM’s now offer (at most margin levels in the marketplace) the same Principal Limit as most Treasury-bill based HECM’s. In addition, since most institutional investors prefer LIBOR based assets to Treasury-bill based assets, we believed that this would also help the liquidity issue that we are seeing in the secondary market. These were the two factors that drove our timing decision.”
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, EverBank, LIBOR
