As lenders continue to aggressively compete for reverse mortgage business, Wells Fargo quietly started offering an adjustable rate HECM product without an origination and service fee set aside.
While there hasn’t been an official announcement, a Wells Fargo spokesperson confirmed with RMD the company recently released the product.
Currently the margin on the adjustable rate product is 2.20%, which while higher than other margins offered by competitors is attractive without the SFSA and origination fee. By eliminating both fees, borrowers are able to receive more money than before.
Wells Fargo continues to be the dominant retail reverse mortgage lender in the country. According to data from Reverse Market Insight, its market share is 17.5% for retail and 3.1% for wholesale. However, its combined market share is 19.1%, with Bank of America trailing right behind with 18.2% said RM Insight.
In addition, the company recently rolled out a no origination and SFSA HECM fixed product.