“While few traditional-mortgage borrowers give me a hug after the closing, it is very common to have that happen after we close on a reverse mortgage,” said Chris Warner, a reverse-mortgage consultant with MetLife Bank. “Most people are just so relieved to have that financial pressure relieved.”
Several changes have been made to the product over the last few years, including the release of the Federal Housing Administration’s HECM Saver program.
“In addition to the saver option for a reverse mortgage, a couple of other changes that have taken place in the past couple of years have created a new enthusiasm for these loans,” Mr. Warner says. “First, a fixed-rate option was introduced, which a lot of people prefer over an adjustable-rate mortgage. Second, a number of lenders, including MetLife, decided to lower the origination fees and servicing fees on a reverse mortgage to make them more attractive to borrowers.”