On the heels of a flurry of new private reverse mortgage product development, top-20 lender Nationwide Equities Corporation announced this week the introduction of its own private reverse mortgage, “EquityPower.” The fixed-rate, lump-sum product allows borrowers to access greater proceeds than the traditional Home Equity Conversion Mortgage (HECM) allows.
Nationwide’s leadership sees the product’s launch as a way to help the company control and grow its pipeline and presence in the reverse mortgage product landscape, its founders tell RMD.
“This roll-out is very exciting for us,” says Paul Lamparillo, Nationwide Equities CEO. “It gives us more servicing control over our pipeline and our closings.”
Initially available in California, Texas, New Jersey and Florida, Nationwide Equities plans to expand the product’s presence in additional states in the near future, and add product features such as a line of credit option.
“When the proprietary products were first introduced, our company embraced it and saw its future potential,” says Glenn Wallace, Nationwide president. “We also saw the need to control our own destiny if we were going to take production to the next level.”
EquityPower is available to borrowers 60 years of age or older. It is supported by what the company calls “flexible, common sense underwriting, without exhausting conditions.” Additionally, Nationwide Equities offers a Help Desk to assist with timely closings.
In appealing to its receptive segment of borrowers, NWE touts the efficiency of EquityPower in comparison with comparable Home Equity Conversion Mortgage (HECM) offerings, while also marking a potential proprietary fit for clients with higher home values, or condominium owners who may not have qualified for other reverse mortgage offerings.
“EquityPower caters to borrowers with higher home values, allowing them to access more money and make the most of their home equity,” NWE says on its EquityPower product website. “It’s also a valuable tool for condominium owners, who may have been rejected from other reverse mortgage products.”
The product is initially being offered to Nationwide’s retail staff, with plans to to roll it out to select wholesale partners in the near future.
Nationwide Equities ranks at number 20 on a list of the top 100 reverse mortgage lenders by wholesale and retail HECM volume, tabulated by Reverse Market Insight based on November 2019 data.