FOR IMMEDIATE RELEASE
ICBA and Financial Freedom Form Alliance to Bring Turnkey Reverse Mortgages to Community Banks
San Diego, Calif. (March 15, 2004) - ICBA Mortgage, a service corporation of the Independent Community Bankers of America, has formed an affinity partnership with Financial Freedom™, a subsidiary of Lehman Brothers Bank, FSB, and the nation's largest lender and servicer of reverse mortgages, to market and distribute reverse mortgages through ICBA member banks.
"ICBA is pleased to work with Financial Freedom to help seniors maintain their financial independence," said Gary C. Teagno, president and CEO of the ICBA Services Network, the parent company of six ICBA service corporations, including ICBA Mortgage. "This alliance enables community banks to access a financial tool that will benefit a significant segment of the population."
The alliance provides ICBA banks with a complete line of reverse mortgage products that can either be turnkey or wholesale correspondent based. Financial Freedom provides training, customer and bank support through its call center and national network of branch offices. It also assists ICBA members with their marketing efforts. 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.
"As the primary voice for community banks in the United States, ICBA 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 alliance supplies ICBA members innovative and versatile products while providing Financial Freedom with unprecedented distribution."
"Reverse mortgages add additional flexibility to the wide range of residential lending products and services already offered by ICBA Mortgage and will well serve the seniors in our communities," said Thomas J. Sheehan, chairman of Grafton State Bank in Grafton, Wis., and chairman of ICBA Mortgage. "This new reverse mortgage program creates a great new opportunity for community banks and their older customers."
To learn more about the program, contact Financial Freedom at (866) 719-7598 or ICBA Mortgage at (800) 253-5356 or www.icbamortgage.com. For information on reverse mortgages, visit Financial Freedom's Web site, www.financialfreedom.com or www.reversemortgage.org, the Web site of the National Reverse Mortgage Lender's Association.
About Reverse Mortgages
A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home, without having to sell their home, give up title, or take on a new monthly mortgage payment. The loan proceeds can be used for any purpose, and the loan isn't repaid until the borrower moves out of the home permanently. When the loan is repaid (the repayment amount can't exceed the value of the home), any remaining equity goes to the borrower's heirs/estate. Loan proceeds can be taken out as a line of credit, lump sum payment, fixed monthly payment, or combination.
Reverse mortgages have emerged as a significant financial security tool for senior homeowners because of the broad range of needs these loans can satisfy, such as:
- Debt reduction
- Estate planning
- Healthcare funding
- Lifestyle enhancement