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Financial Freedom and America's Community Bankers Form Partnership
to Market and Distribute Reverse Mortgages
NEWS RELEASE
Irvine, CA
Oct 17, 2001
FOR IMMEDIATE RELEASE
Partnership Brings Turn-Key Reverse Mortgage Program To ACB Banks
Financial Freedom, the nation's largest lender and servicer of reverse mortgages and a subsidiary of Lehman Brothers Bank, FSB has formed a partnership with ACB Partners, the for profit arm of the national trade association of community banks, America's Community Bankers, to market and distribute reverse mortgages through ACB member banks.
The partnership provides ACB banks with a complete line of reverse mortgage products that can either be turn-key or wholesale correspondent based. Financial Freedom will provide training, customer and bank support through its call center and national network of branch offices, and assist banks with marketing. The company offers complete loan origination services from application through closing and funding, but the flexibility of the program allows banks to choose their level of involvement in the loan process.
"ACB is a terrific organization whose members have a long history of providing their communities with a high level of diverse services," said James Mahoney, CEO of Financial Freedom. "This partnership with ACB Partners supplies ACB banks with innovative and versatile lending products while providing Financial Freedom with unprecedented distribution."
ACB members interested in learning more can contact Financial Freedom at
1-866-719-8107 or can visit a special ACB Partners/FF Web site launching on
October 23 at www.financialfreedom.com/acbpartners.
"Reverse mortgages add additional flexibility to the wide range of home loans already offered by ACB members, but they do much more than that," added Mike Potter, president of ACB Partners. "A reverse mortgage program combines the community banks' strength in lending with their closeness to the customer to create a relationship that is more akin to financial planning than merely a loan transaction. A well-crafted reverse mortgage, borne out of a strong understanding of the customers' financial needs and goals, can be the underpinning of a secure and satisfying future for many seniors. The bankers who incorporate this program into their banks today will be well positioned to serve the market segment of seniors whose attractive demographics are about to explode."
"Reverse mortgages are a great way for seniors with built-up equity in their homes to generate income to meet their immediate needs or to handle extraordinary expenses," said Jeffery Hayward, Fannie Mae's vice president of single-family business. "We're pleased to work with ACB members and Financial Freedom to help seniors maintain their financial independence."
A reverse mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home. For more information on reverse mortgages visit Financial Freedom's Web site at www.financialfreedom.com, call 888-REVERSE or visit the National Reverse Mortgage Lenders Web site at www.reversemortgage.org.
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 www.reversemortgage.org.
Financial Freedom Senior Funding Corporation, based in Irvine, California, is the largest originator of reverse mortgages in the United States. Financial Freedom originated $525 million of home value in reverse mortgages in 2000 including business purchased from Unity Mortgage. Together, the two companies have made more than 12,000 reverse mortgage loans totaling more than $2 billion in home value. Financial Freedom is now the largest servicer of reverse mortgages with a servicing portfolio of approximately 18,000 loans. Additional information on the company and its products is available through www.financialfreedom.com, which provides an interactive reverse mortgage calculator helpful in determining the amount of money a borrower could receive based on current home value, locale, age and outstanding mortgages.
In 1999, Lehman Brothers, on behalf of Financial Freedom, underwrote the first US securitization of a reverse mortgage portfolio. Additional information on Lehman Brothers Bank and it's services can be found by visiting its website at www.lehmanbank.com.
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