New York Life and AARP to Team Up on Reverse Mortgage Initiative?

New York Life has yet to make any official move into reverse mortgages, but more information has surfaced suggesting that the insurance powerhouse plans to work with AARP when it does.

A new position posted on New York Life’s website shows the company is looking for a Senior Strategy Officer who will be responsible for developing new lines of business, one of which includes a new reverse mortgage product. While RMD reported in January on a different position to oversee financial reporting for new business, the newest opportunity would be for New York Life’s AARP division.

Several people have told RMD the company plans to utilize its relationship with AARP to market a new private reverse mortgage product designed to compete with the Federal Housing Administration’s Home Equity Conversion Mortgage. The latest job opening seems to confirm it plans on moving forward in that direction.

Advertisement

New York Life doesn’t comment on rumors or speculation, but said that it’s always looking at new business opportunities. When asked about its plans with New York Life, a spokesperson for AARP didn’t rule out the possibility, but said it didn’t have anything in the works as of today.

“We are looking at the retirement security space and a number of options but have made no decisions and have not even initiated any kind of product development,” said David Allen of AARP in an email to RMD.

Last year, AARP filed a lawsuit against the Department of Housing and Urban Development for its alleged abandonment of federal protections for surviving spouses of reverse mortgage borrowers. While the court eventually threw out the lawsuit, it did get HUD to rescind guidance issued in 2008 that was used to clarify its non-recourse policy for loans backed by FHA. During the lawsuit, AARP never took any issues with the reverse mortgage product, just the way that HUD managed the product.

If New York Life does enter the reverse mortgage business, it would join other insurance powerhouses MetLife and Genworth Financial, which both operate lenders in the space.

Join the Conversation (7)

see all

This is a professional community. Please use discretion when posting a comment.

  • I’m guessing that this is going to mirror the Saver not the Standard.  It’s hard to imagine insurance companies getting involved in a higher risk product unless they feel the market’s bottomed out.  I’d still love to see a private product that’s regional, but we probably won’t get that unless we, as an industry, have much higher volume.     

  • If and when this New York Life/AARP reverse-mortgage partnership happens, it will be a significant and welcome development. HECM has done its foundational work for the industry; it now needs credible competition. This could be it. It could expand the market.

  • In case this will really happen, I do hope that it would bring positive results to the market. The housing market is showing some good signs although very little; this would be enough to give simple buyers some level of hope…..

  • As a senior, what would I trust the claims of NYL or the FHA?  This NYL product will not be competitive if is somewhat marginally better than HECMs.  It will have to be substantially better.  How will NYL accomplish that?

    Like proprietary reverse mortgages and true equity release products such as Equity Key, Rex, and NestWorth, do not expect this product to have national availability.  If there is a release of such a product it will not be offered in such markets as Houston, Las Vegas, most of Arizona, a significant portion of Florida and much of the south and midwest.  

    NYL could offer the product to coop owners in NYC and parts of Southern California.

    For now a NYL product which will be competitive to HECMs is more dream than fact.

string(109) "https://reversemortgagedaily.com/2012/02/23/new-york-life-and-aarp-to-team-up-on-reverse-mortgage-initiative/"

Share your opinion