Genworth Brings Back Some Adjustable Rate Reverse Mortgage Products

Genworth Financial Home Equity Access has reintroduced adjustable rate HECM Standard and Saver product offerings, which it temporarily cut last week from its wholesale channel. GFHEA informed its wholesale partners of the change today via an email obtained by RMD.

Last Wednesday, the company announced it was temporarily suspending those product offerings, “until market conditions allow for GFHEA to reintroduce [the] offerings.”

Brokers told RMD the ARM products GFHEA is offering are priced less aggressively than others in the marketplace.


GFHEA did not note any change to its fixed rate product offerings for manufactured homes, which it also suspended last week.

RMD contacted GFHEA for more information, but our request had not been answered as of press time.

Written by Elizabeth Ecker

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  • Why bring back the standard adjustable program if the margin is going to be set at 3%. What wholesale originators are going to send them business? Lower Principal limit and higher rate for your clients makes no sense.

  • I am glad to see the ARMs back. As you really know the real benefit of ARMs is just the options of the different payout options. So overall as long as the margins are near market lows, it’s all good.

    Have you all seen the new iPhone/iPad app Genworth rolled out this week.

    It is awesome and defiantly a tool I will be using everyday.

    Reverse2go is the name in the app store

    • GreatTx007,
      There is little doubt you mean what you write when you state:  “As you really know the real benefit of ARMs is just the options of the different payout options.”  I will not touch the grammatical problems with the sentence but it conveys one of the important reasons why HECMs are considered as loans of last resort.
      You are not a bad guy or a poor originator.  This is a matter of money management.  The very best part of the adjustable rates is its line of credit.  Not only does it have a residual growth feature but it allows prepayment and the ability to withdraw the prepayment in the future.  Although it would generally result in smaller and variable payouts one could even create their own tenure payout program by simply paying out the growth.
      It is clear very few members of our industry have much background in money or debt management; yet we provide a potentially powerful tool designed exactly for those purposes for those over 62.  To read that “the real benefit of ARMs is just…payout options” indicates how little those who educate understand the adjustable rate products and their uses that they provide education on.  While that is one of the beneficial attributes inherent with the adjustable rate, it is only one.   

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