Last week's inaugural securitization of a U.S. reverse mortgage loan portfolio by Financial Freedom Senior Funding Corp., for $317 million in bonds, raised the profile of what many mortgage-backed securities players are calling an emerging asset class that may have enormous promise for investors down the road.

With Lehman Brothers acting as lead agent on the transaction, Financial Freedom, an Irvine, California-based lender, securitized the HomeFirst reverse mortgage portfolio which it acquired when it bought TransAmerica in June.

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