Need A Jumbo Reverse Mortgage? Make It A Double

As the credit crunch spreads into the proprietary reverse mortgage business, it is beginning to cause issues for both originators and borrowers with dwindling options for these products. Welcome to the land of the Double Application.

Many loan originators have begun having to originate two reverse mortgages at the time of application never knowing if one lender will keep their product in the market place versus the other. With a number of wholesalers reselling the same proprietary product on Wall Street, originators and borrowers are limited in their choices for these products. It doesn’t seem reassuring to a senior to hear that since you don’t know if a product will be around thirty days later they better sign two sets of documents just in case….kind of scary. Being prudent in this case may make a senior more nervous about their reverse mortgage, the housing market, and Wall Street lenders. Hopefully, we won’t be ordering a triple.

Here are the jumbos that I know of which are still available (these are wholesale states only):

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  • Gold Reverse Jumbo – Available in CA, FL, WA, NV
  • LLS Equity Plus Advantage – Available in AL, AZ, CA, CO, CT, DC, FL, IL, LA, ME, MD, MI, MS, MO, NJ, NM, NC, NV, OH, OR, PA, SC, TC, VA, and WA.
  • EverBank Reverse Select – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.
  • 1st Reverse Fixed 4 Life – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.

What about the Cash Account? Not sure, I’m hearing it’s being pulled but all of my former contacts at Financial Freedom no longer work there and the other contacts I have wont respond to me… including their PR company and Executives… so I’m thinking it might be true.

Countrywide Simple Equity is apparently dead too… no one from CW wants to talk to me when they are pulling products

I did get confirmation from Bank of America that the Independence plan is suspended but there other proprietary products are still active… once I get more information on them I will be sure to post about it.

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  • As of 4/23, my A/E said that the Cash Account has been cut off to its Indymac wholesale brokers. She stated that the Cash Account will be available to existing correpondents, but not to new correspondents. She also stated that FF will revisit the issue in 60 to 90 days to determine if they will continue to offer it.

  • Not sure why anyone would take two applications…. All private RM’s that have disolved in this market have been announced in advance and the companies and originators know when their cut off is to submit these for u/w and funding.

  • I am 73 years old (7/31/1935) and wish to acquire a jumbo reverse mortgage. My home is located in Louisa County, Virginia – which I see is listed for qualification under categories listed above: LLS Equity Plus Advantage; EverBank Reverse Select; and
    1st Reverse Fixed 4 Life.

    My property is 21 acres and I have owned it for 22 years. It is appraised at $562,000 as of May 2008. The first mortgage is in the amount of $314,700, and the second (a bank equity loan) is in the amount of $39,600. My real equity in the property is $207,700.

    Louisa County, Va has a cap of $417,000 on FHA reverse mortgages. I am told that my equity would necessitate my bringing around $75,000 the table for an FHA reverse loan. I do not understand how this works, but it would seem rather steep when I have $200,000 in real, appraised equity. I am seeking a workable financial solution to this situation. – Sincerely, Raymond Woolfe

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