Lender Plans to Introduce LIBOR-Based HECM

Under new government changes about to be formally rolled out, Lender Lead Solutions, Melville, N.Y., is making plans to introduce a Home Equity Conversion Mortgage based on the London interbank offered rate index rather than the constant maturity Treasury index."The LIBOR-based HECM provides brokers added margin while giving them flexibility to structure rates and loan closing costs to meet the individual needs of borrowers," said LLS chief executive David Peskin. "The migration to the LIBOR index will be the next big trend in the reverse mortgage industry. Its attractive pricing is better for our brokers and creates less interest rate risk for lenders like us."