According to an article from HeraldNet we will start to see more lenders allowing borrowers to get a reverse mortgage on their second homes. Bank of America who recently purchased the reverse mortgage business of Seattle Mortgage is expected to allow reverse mortgages for second homes once the purchase is complete next month. “The demographics of our seniors and the upcoming boomer group indicate there are multiple tentacles of financial planning tools that could be used in the long run,” said John Nixon, the executive vice president and Chief Operating Officer of Reverse Mortgage of America, a division of Seattle Mortgage Company, who will be moving over to Bank of America. “One of those tools would be helping people with significant equity in the second home to help tap that equity to make their lives more comfortable.”
BNY Mortgage has also said that they will allow reverse mortgages on second homes under certain guidelines. Sarah Hulbert, executive director of BNY Mortgage’s western regional center, said they would allow its Prime Advantage™ product on a second home as long as the owner didn’t already have a Prime Advantage™ loan on their primary residence.
Back in April, Sun West Mortgage Company Inc. released their Cash Keeper™ which was the first product to allow the borrower to get a reverse mortgage on their second home. It’s good to see other lenders starting to adapt to the changing marketplace of reverse mortgage borrowers and I’m sure we will see others doing the same very soon. To read a full copy of the article from HeraldNet click the link below.