Transamerica HomeFirst Inc., which originates reverse-annuity mortgages and holds them in its own portfolio, introduced a version with no origination fees.

Instead, the lender will charge 4% of the appraised home value when the loan matures.

Linda Hubbard, vice president of marketing and public relations at Transamerica, said the new product is intended to appeal to homeowners who have stayed away from reverse mortgages, because they didn't want to pay origination fees.

"When they got a mortgage 40 years ago, there were often no points. They are not used to doing what so many people do today - shopping for points, trading points for interest rates," said Ms. Hubbard.

Transamerica's new reverse mortgage is available to homeowners who are 65 or older and have homes valued at $75,000 or more. They may obtain a line of credit against the equity in their homes.

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