""I think we're in market now with our ninth securitization in the last two years, Longbridge CEO Chris Mayer said in an interview with HousingWire's Reverse Mortgage Daily.""
""Through the last deal, every one of those traded better than they traded before, meaning investors were willing to accept a lower rate of return to buy our bonds, the interest rate on the bonds fell, or the spread between Treasurys and the bonds kept falling. And those lower spreads give us room to improve the products from the perspective of consumers.""
""What we're trying to do is ask, Who are the people who are not taking out reverse mortgages today, and how can we create products to bring them into the space to grow the overall size of the pie?""
Proprietary reverse mortgages accounted for 40% of reverse mortgage volume in September, just before a federal shutdown and HECM endorsement pause. Institutional investors have become more willing to buy proprietary reverse-mortgage bonds after multiple securitizations, with each deal trading tighter and yielding lower spreads. Lower spreads allow issuers to enhance product features, including higher principal limit factors that can boost proceeds by up to 25% on popular loans. Longbridge expanded its proprietary product line with offerings such as Platinum Peak and Platinum Preserve, available to qualifying borrowers 55 and older, with options including single draws, fixed rates, and adjustable-rate lines of credit.
Read at www.housingwire.com
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