Longbridge Leads Major Lenders in Key Reverse Mortgage Metric

Reverse Mortgage Daily


According to data compiled by SitusAMC and shared with RMD, Home Equity Conversion Mortgage (HECM) conditional prepayment (CPR) speeds surged in June, as borrowers rushed to take greater advantage of the low interest rate environment. These low rates resulted from the unfreezing of the 10-year LIBOR SWAP rate.

Generally speaking, the lower the prepayment speed, the better that buy side accounts and lenders will perform, since those lower speeds correspond directly to the accrual of interest. By this metric, there was a clear indication as to which of the country’s top reverse mortgage lenders performed best in terms of having lower prepayment speeds in comparison with – Longbridge Financial.

For Longbridge, the low prepayment speed is shaped by our proactive approach in determining the overall value of the loans in our portfolio.

“Longbridge employs a data-driven approach to many aspects of our business, from lead acquisition to partner selection and pricing,” noted Tim Wilkinson, VP Capital Markets at Longbridge. “This focus has helped ensure that Longbridge’s portfolio of loans is of high quality, and accordingly has performed well over time.”

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