A banner year for reverse-mortgage originations and a flourishing borrower base may open the floodgates for future securitization of the product, sources say, including a second transaction from previous issuer Financial Freedom Senior Funding Corp., slated for sometime during 2002 - possibly early in the year if originations keep up their impressive pace.

After being delayed several months due to legal and compliance issues, Irvine, Calif.-based Financial Freedom, officially part of Lehman Brothers Bank (a subsidiary of Lehman Brothers Holdings), is readying the second securitization of its proprietary jumbo reverse-mortgage product, according to the company's chief operating officer, Jim Mahoney. The deal will probably be in the range of $200 million to $300 million.

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