Guild
Mortgage
announced
on
Wednesday
the
introduction
of
a
new
product
line
called
the
“Flex
Payment
Mortgage,”
which
includes


Federal
Housing
Administration
(FHA)-sponsored
Home
Equity
Conversion
Mortgages
(HECMs),
refinances,
proprietary
jumbo
options
and
HECM
for
Purchase
(H4P)
loans.

“Guild’s
Flex
Payment
Mortgage
is
a
suite
of
products
combining
federally-insured
[HECMs]
with
options
for
larger
loan
amounts
as
well
as
the
reverse
mortgage
for
purchase,”
the
company
stated.
“With
a
Flex
Payment
Mortgage,
aging
homeowners
are
empowered
to
draw
funds
from
the
equity
they
have
built
over
the
years
without
having
to
sell
their
home.”

Citing
data
that

indicates
an
overwhelming
desire
among
older
Americans
to
age
in
place
in
their
homes,
the
company
said
that
the
product
line
will
allow
“a
homeowner
62
years
or
older
to
pay
off
the
remaining
balance
on
their
existing
mortgage,
supplement
living
expenses,
pay
for
lifestyle
improvements
or
renovations,
or
stay
closer
to
their
family
and
community.”

Converting
equity
into
available
cash
can
be
accomplished
without
impacting

Social
Security
or
Medicare
benefits,
the
company
said.
HECM
loan
proceeds
do
not
qualify
as
income
for
tax
purposes.
The
company
is
aiming
to
position
this
product
line
as
an
alternative
option
to
more
traditional
home
equity
loans
or
home
equity
lines
of
credit
(HELOCs),
which
are
equity-tapping
products
that
typically
have
a
higher
penetration
rate
than
reverse
mortgage
products.

“These
mortgages
are
different
[from]
home
equity
loans
or
lines
of
credit
because
they
are
based
on
the
value
of
a
customer’s
home
rather
than
their
ability
to
make
monthly
principal
and
interest
payments,
or
their
credit
score,”
the
announcement
explained.

“There
is
no
minimum
credit
score
required
for
a
Guild
Flex
Payment
Mortgage.
As
with
most
federally-insured
HECMs,
the
loan’s
balance,
including
interest,
will
never
surpass
a
borrower’s
home’s
value,
providing
assurance
they
will
never
owe
more
than
their
home
is
worth.”

The
same
obligations
of
a
traditional
HECM
—
namely,
keeping
up
with
property
taxes,
insurance
maintenance
and
(if
applicable)
HOA
fees
—
must
be
maintained
to
avoid

foreclosure.

Jim
Cory,
managing
director
of
Guild’s
reverse
division,
said
that
the
company’s

growth
in
the
space
necessitated
additional
product
options
for
a
larger
base
of
borrowers.

“Our
reverse
mortgage
business
has
grown
greatly
in
the
past
year
and
a
half
as
Guild
answers
this
demand
with
options
like
Flex
Payment
Mortgages,
including
reverse
for
purchase,
and
retaining
reverse
mortgage
servicing,”
said
Cory,
who
transitioned
to
Guild
when
the
company

purchased
Colorado-based


Cherry
Creek
Mortgage
and
folded
its
reverse
division

into
its
own
operations.

Related