Reverse mortgage and Federal Housing Administration-focues lender NewDay USA this week announced it is making a new push toward the purchase of closed reverse mortgage for purchase loans.
As a conduit buyer for purchase reverse mortgage products, the company is focusing on builder-owned mortgage companies and will also offer the reverse mortgage for purchase through its retail channel.
“All of the nation’s largest home builders have business units dedicated to retirement community building and sales, and the reasons are obvious,” said Joe Murin, NewDay USA president. “The demand for senior housing is set to sky rocket. Baby boomers have officially become seniors. At the same time, the boomers’ elderly parents are enjoying longer, more active lives. Along with the demand for senior housing there’s an equally strong need for financial solutions tailored to the needs of seniors and retirees.”
The company’s effort includes fixed rate and adjustable rate reverse mortgage for purchase loans with hopes to develop the product’s potential, Murin said.
“The mortgage industry as a whole has not been particularly focused on developing this product’s potential. We believe now is an ideal time to help seniors and the homebuilding industry by supporting originations of these purchase-reverse mortgages,” Murin said.
The company’s announcement came during the International Builders Show in Las Vegas.
Written by Elizabeth Ecker