First Century Bank announced the roll out of a new program that allows financial institutions to offer reverse mortgages and remain compliant with the Real Estate Settlement Procedures Act (RESPA).
The new Home Equity Conversion Mortgage (HECM) program allows regulated financial institutions to generate additional fee income without the overhead needed to run a reverse mortgage operation.
“Firms that partner with FCB have the advantage of the 70+ combined years of mortgage banking experience of FCB’s executive management team and of the talents and knowledge of its dedicated mortgage professionals,” said the company in a statement.
RMD reached out to First Century for comment on how many clients the bank has signed up and did not receive a response at press time.
The bank will have some competition, other lenders like Security One Lending and Cherry Creek also operate channels targeted at other banks.