Generation Mortgage announced the release of the Generation Plus on Tuesday, a new fixed rate jumbo reverse mortgage program for homes valued up to $6 million.
The product is tailored specifically for seniors whose homes appraise higher than than $1,000,000 said the company.
“Many owners of higher-valued homes find themselves in the position of being house rich and cash poor,” said Jeff Lewis, Chairman of Generation Mortgage. “With our Plus loan, these owners can receive the liquidity they require without having to sell their home or other assets. And, with an improving real estate market, this offering becomes even more attractive.”
According to the company, the minimum home value eligible is $500,000. Borrowers are required to receive a HECM counseling certificate in order to obtain the loan and the product includes a $25 servicing fee (not a set aside). Additionally, seniors can use the Prime to purchase a home.
“Generation Mortgage is in the business of helping clients to enjoy their homes for as long as possible,” commented Lewis. “We will continue to introduce innovative products like Generation Plus to fulfill that goal for the full spectrum of the senior community.”
Generation is the first non-bank lender to come out with a proprietary product in the last two years, which signals investor interest is back. Bank of America has offered a jumbo reverse mortgage to retail customers on a limited basis but it was never very competitive according to our sources. Bank of America clearly has a balance sheet to put the loans, while Generation, not being a bank does not. Lewis wouldn’t comment on which or how many investors are purchasing the product.