The professor’s objective in developing the HECM reverse mortgage program was to provide features that are important to seniors but not available elsewhere in the market.
* Loan providers certified by the professor as Certified Network Lenders -- see below.
- A reliable and easy-to-use calculator enabling seniors to determine how much they can draw on each HECM option or combination of options.
- Personalized guidance on using the calculator, and on determining whether a HECM will meet the senior’s needs, prior to contacting a lender.
- Price competition, enabling seniors to assure themselves that the interest rate and fees of the HECM option they select are among the best available in the market at the time.
- Protection against “lock abuse” – an unwarranted price increase after the senior is committed to the transaction.
- “Ombudsman support”, in the event that something goes wrong in the process of dealing with the lender.
As of August 1, 2016, the following Certified Network Lenders (CNLs) were offering reverse mortgages on this site:
Evolve Bank and Trust
Federal Savings Bank
CNLs Transmit Their Prices and
Underwriting Data to the Professor’s Network Electronically:
Direct transmission means that loan
officers have no discretion over prices, which eliminates
"low=balling" and other games that loan officers sometimes
play, at the borrower's expense. It also allows the
professor to a) sort and compare the terms offered by
different lenders, on a timely basis, for the benefit of
borrowers; b) provide potential borrowers with the capacity
to monitor their lender’s prices until their loan is locked
(see below); and c) maintain a day-to-day historical record
of market prices.
Prices That Are as Low or Lower Than Those Offered by That
CNL Directly to Borrowers Through Any Other Channel.
CNLs Disclose Complete
Information About Adjustable Rate Mortgages (ARMs):
On each ARM that they offer, CNLs must provide the rate
index, current index value, margin, rate adjustment caps and
maximum and minimum rates. This allows the professor and
users to assess the risk of future rate and payment
increases using the professor’s built-in decision support.
CNLs Accept the Mortgage Professor as the Borrower's Ombudsman.They understand that in the unlikely event that something goes wrong, the professor or his agent will represent the borrower in getting the problem fixed. To facilitate this process, each CNL designates a Single Point of Contact.
Those interested in learning more about these features can do so at Why the Mortgage Professor Is Offering Reverse Mortgages.