| |
Financial Freedom™Introduces First Zero Point™ Reverse Mortgage --
Zero Point™ Cash Account™ Becomes Lowest Cost Reverse Mortgage Ever
NEWS RELEASE
September 25, 2003
FOR IMMEDIATE RELEASE
Financial Freedom™ Introduces First Zero Point™ Reverse Mortgage
-- Zero Point™ Cash Account™ Becomes Lowest Cost Reverse Mortgage Ever --
Irvine, CA, (September 25, 2003) – Financial Freedom Senior Funding Corporation, the nation’s largest lender
and servicer of reverse mortgages and a subsidiary of Lehman Brothers Bank, FSB, announced today the introduction
of the Financial Freedom™ Zero Point™ Cash Account™, the first no fee loan for the reverse mortgage
industry.
The structure of this new reverse mortgage, geared to home values greater than $450,000, gives jumbo borrowers
more money at a lower overall cost than has been previously possible.
“Access is the key to the Zero Point™ Cash Account™,” said James Mahoney, CEO of Financial Freedom™.
“Borrowers can now access more money at a lower cost, and our distribution agreements give homeowners access to the
product virtually everywhere from their choice of institutions, such as their trusted community banks.”
For the Zero Point™ Cash Account™, Financial Freedom™ has capped third party closing costs
and eliminated up-front origination fees in order to significantly reduce the costs of a reverse mortgage.
Borrowers are required to draw 75% of their maximum available benefit at loan closing, however Financial
Freedom™ has kept the interest rate structure the same as its standard Cash Account™, which is
the only jumbo reverse mortgage available.
Both products provide homeowners age 62 or older with the ability to convert their home equity into cash
without having to sell their home or assume monthly payments. In addition, both boast numerous consumer
safeguards that have become standard in the industry, including third party counseling to ensure the borrower
understands the terms of and that the loan is appropriately matched to the borrower’s needs. Financial Freedom™
has also instituted interest rate caps (6%) that are the lowest in the industry. Reverse mortgages also are structured
so that borrowers always retain title to their homes, cannot owe more than their homes are worth and enjoy
limits on interest rates and origination fees.
About Financial Freedom™
Financial Freedom™is a founding member of the National Reverse Mortgage Lenders Association.
NRMLA is a nonprofit trade association, based in Washington, DC, whose mission is to support the
continued evolution of reverse mortgages as an important financial option for senior homeowners
while educating both its members and consumers about the varied applications of this unique loan.
Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful
practices in offering and making reverse mortgages to seniors. For more information, visit the NRMLA Web site at
http://www.reversemortgage.org.
Financial Freedom™, based in Irvine, California, is the largest originator of reverse mortgages
in the United States. Financial Freedom™ originated $1 billion of home value in reverse mortgages in 2002
and has made more than 30,000 reverse mortgage loans totaling more than $5 billion in home value.
Financial Freedom™
is now the largest servicer of reverse mortgages with a servicing portfolio of
approximately 32,000 loans. Lehman Brothers Bank, FSB is a subsidiary of Lehman Brothers, the global investment bank.
The Bank provides a full range of community banking services to individuals in Delaware, as well as consumer
financial services and products, such as mortgage and deposit products, to high-net-worth clients.
Headquartered in Delaware, the Bank is expanding its capabilities through the Internet to provide
banking services nationally, and plans to offer its products through strategic partnerships with
retail and financial organizations throughout the country. Additional information on Lehman Brothers Bank
and its services can be found by visiting its website at www.lehmanbank.com.
The flag logo, “Financial Freedom”, “The Reverse Mortgage Specialist”, “Cash Account” and “Zero Point™
Cash Account” are Trademarks of Financial Freedom Senior Funding Corporation, Irvine, California.
|
|
