News Item #1: HUD1s with no closing costs?

This press release, posted this morning, should be very interesting to RMPs (Reverse Mortgage Producers).

Let’s see, what do you get when you cross no origination fee, no servicing fee with a 4% closing cost rebate?

My math is a little fuzzy, but I come up with a “No-cost” HECM.

Why 4%? 2% to cover the MIP (Mortgage Insurance Premium), 2% to cover the other closing costs (appraisal, counseling, title, etc…) of course.

We have reported more than once no-costs HECMs were on the way (check the Email Archive)

From a production point of view only (Compliance may differ), this is great!

It simplifies the decision for the senior by having them focus on only two questions:

• How much will I get?
• How much will be left for my heirs?

Of course, the costs are important, but they are highly regulated and controlled and are also imbedded in the answers to the two questions above.

From a RMP standpoint, having HUD1s with no closing costs as a marketing tool would be awesome. Wow!

We always try to give light to the good things going on in the industry.

RP Funding is the company taking this bold step, offering it in Florida, Texas, Mississippi, and Tennessee.

Good luck!

RMPs, please remember to click something, anything, in each and every email. Thanks!