HECM Flow of Money and the Tale of Tails  


What is a Tail and How is it Valuable?

The adjustable HECM has built-in flexibility for the borrower to draw funds against their line of credit, similar to a HELOC. However, when a HECM borrower draws from their line of credit after closing, for HECM loans, these fundings are referred to as “Tails". These “Tails” are loan advances that can be securitized, just like the funds advanced at closing.

These funds go into a security with virtually no new “typical” loan costs. Coupled with virtually no investor competition is the FACT that as much as 18% of all traditional mortgage loans are originated to a demographic prime for the flexibility of a Home Equity Conversion Mortgage (HECM). This means you have a database full of potential customers and loans just waiting for your expertise

Learn More 

Serve your customers for life by watching the 25-minute capital markets discussion and downloading the “Tale of Tails” PDF to inherently understand the value of reverse mortgage loans and securities in the secondary market.

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