Longbridge Introduces Platinum Peak: A New Opportunity for Younger Borrowers
New Variants Offer Reengagement Possibilities
Longbridge Financial has recently unveiled a significant enhancement to its proprietary reverse mortgage line with the launch of Platinum Peak. This new variation aims to create opportunities for reengaging borrowers who may have faced challenges in securing a loan due to previous low loan-to-value (LTV) ratios. The updated terms are expected to attract those who were previously ineligible, enabling meaningful discussions about loan possibilities.
Targeting Younger Borrowers
The Platinum Peak product is particularly beneficial for borrowers aged between 62 and 70, as it allows for a higher loan amount. This increase in available loan proceeds has the potential to cater to the specific needs and financial goals of this demographic, creating pathways for greater financial flexibility.
Availability Across Loan Origination Systems
According to Longbridge, Platinum Peak is accessible through at least two reverse mortgage loan origination systems (LOS) designed for brokers. Principal agents and closed loan sellers can collaborate with their LOS administrators to integrate this product into their offerings. However, it is essential to note that the variations available to brokers and principal agents are not identical. For further details, originators are encouraged to reach out to their account executive.
Recent Adjustments to Minimum Home Value
In a strategic move earlier this year, Longbridge reduced the minimum home value required for its fixed-rate proprietary products. The Platinum line has shifted to accept properties with a minimum appraised value of $450,000, adjusting its criteria to be more inclusive than the Federal Housing Administration (FHA) limits. Borrowers currently in the application process for a Home Equity Conversion Mortgage (HECM) can opt to transition their application to a Platinum product, although it may involve revisiting some portions of the application process.
Understanding Borrower Needs
During earlier discussions, Longbridge CEO Chris Mayer highlighted that certain borrower profiles may benefit more from proprietary loans rather than traditional FHA-backed HECMs. He 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.” This observation underscores the evolving needs within the market where proprietary products like Platinum are positioned as viable alternatives.
Industry Trends Toward Proprietary Products
The shift toward proprietary reverse mortgage products is gaining traction among lenders. For instance, Finance of America has made significant strides with its HomeSafe product suite this year and indicated a substantial rise in distribution figures, especially for its closed-end second-lien reverse mortgage, HomeSafe Second. Furthermore, Mutual of Omaha Mortgage recently launched its proprietary product, SecureEquity, which is currently available in California and Florida, marking the expansion of proprietary offerings in the marketplace.
Conclusion
As Longbridge’s Platinum Peak product demonstrates, the reverse mortgage landscape is evolving to meet the needs of borrowers, particularly within the younger cohort. These advances highlight a growing recognition of the diverse financial circumstances that homeowners may face, creating favorable opportunities in the proprietary mortgage sector.
