Blog content updated on 9/22/2021
At Longbridge Financial, a leading reverse mortgage lender, we’re pleased to announce the launch of the Platinum Origination Channel: a new distribution outlet for our line of proprietary reverse mortgages offered under the Platinum brand name.
We created this dedicated channel to give partners who have their own third-party networks more opportunities. Now they can offer Longbridge Platinum, our industry-leading proprietary mortgage program, to their Wholesale networks as part of their previously existing product lines.
That way, Platinum products can be extended to a wider pool of originators that would not have access to the program unless they worked directly with Longbridge.
A great option for seniors. A key addition for lenders.
Seniors age 62+ own over $9.02 trillion1 of home equity: the highest amount of housing wealth on record. And every day, more than 10,000 people reach retirement age2—representing an ever-growing population of seniors who need to free up more cash to fund their retirement.
Our Platinum proprietary mortgage can do precisely that, while offering more available cash than a standard reverse mortgage and more flexibility than a HELOC. It not only meets the needs of this under-served and growing market, but also helps wholesalers and their networks take advantage of a significant business opportunity:
- Expand markets beyond the standard reverse mortgage and traditional forward mortgage programs
- Deliver an attractive low-cost, low-rate product that better serves senior borrowers who need it most
- Fuel business growth through increased origination volume
- Serve clients’ needs from their first purchase through retirement
What is Longbridge Platinum?
It’s a proprietary, non-Federal Housing Administration (FHA) reverse mortgage program for borrowers with high-value homes or condominiums that may not qualify for a standard HECM reverse mortgage.
There’s a fixed-rate program for clients looking for a full-draw loan at a low, fixed rate—and a line of credit option for clients who want some upfront cash now and a reusable, growing line of credit for the future. It features:
- Loan amounts up to $4 million
- Low costs, with no mortgage insurance premiums
- Non-FHA-approved condos, eligible under a streamlined Fannie Mae Limited Review process
- A more flexible purchase product, allowing seller concessions up to 6%
Platinum Line of Credit: the go-to HELOC substitute for seniors.
For every senior who chooses a reverse mortgage, nearly 11 seniors choose a HELOC as a financing alternative.3 But now, Longbridge Platinum’s line of credit option offers them a number of advantages over a standard HELOC.
As compared to a HELOC, a Platinum line of credit features:
- A reusable line of credit that grows over time4
- Low upfront costs
- Comparable rate
- Easier income qualification
- No required monthly mortgage payments5
- Similar borrower benefits and safeguards of a standard reverse mortgage program
For more Platinum product information—including a detailed comparison to a standard HELOC—click here.
The Platinum Origination Channel allows wholesale partners to reach homeowners aged 60 and older6 who typically take out HELOCs or other mortgage products—but who may be better served by a home-equity release product with flexibility and borrower protection that’s designed specifically for them.
Platinum Origination Channel partners get all the tools they need to succeed.
- A dedicated Strategic Partners Manager to help implement operational process flows and develop growth plans for the Platinum program
- Training materials and media based on what works best for them:
- Online video and PowerPoint training sessions
- Real-time or on-demand webinars
- Face-to-face training available
- Easily customizable marketing materials:
- An array of collateral for both business-to-business and business-to-consumer use
- Anytime access to marketing materials via the Platinum Web Portal
- We also work with partners to develop new materials for specific needs
Why work with Longbridge?
Our Platinum program offers borrowers more options. Our Platinum Origination Channel offers our partners and their Wholesale networks more opportunities. We’re a proud member of the National Association of Reverse Mortgage Lenders, and fully subscribe to its code of ethics. Not all lenders can say that.
Watch now to learn how partners can take advantage of this exciting opportunity.
Read the full Reverse Mortgage Daily article here.
DISCLOSURE:
1 https://reversemortgagedaily.com/2021/07/22/senior-housing-wealth-tops-9-trillion-for-first-time/
2 Baby Boomers Retire, Pewresearch.org, December 2010
3 2016 Survey of Consumer Finances, The Urban Institute, November 2017.
4 Clients can access up to 90% of the Principal Limit during the first 10 years—with the ability to redraw repaid principal amounts—except for the first 25% taken at closing.
5 Real estate taxes, homeowners insurance, and property maintenance required.
6 State exclusions apply.
