During a time when some lenders have scaled back their participation in the proprietary reverse mortgage landscape due to market volatility, one lender announced this week it is expanding its offerings.
San Diego-based Plaza Home Mortgage, predominantly a wholesaler lender is expanding its Reverse Jumbo mortgage program to 11 states and will now be offering the program in Arizona, California, Colorado, Connecticut, Florida, Hawaii, Illinois, New Jersey, Oregon, Texas, and Utah.
Initially, Plaza began offering jumbo reverse mortgages in California and Hawaii in late 2019, in addition to its Home Equity Conversion Mortgage program. The company expects to further expand its reach to a handful of other states and with new product features including adjustable rate and for-purchase options.
“The product release was designed to be slow and gradual,” says Mark Reeve, Vice President, Reverse Mortgages at Plaza Home Mortgage. “We now have expanded to 11 states and expect to be in five more by the end of the month.”
The expansion comes on the heels of several proprietary lenders modifying their loan programs or pausing them in light of the COVID-19 pandemic.
Yet demand is strong for the product, Reeve says.
“Plaza is expanding its program in response to the growing demand from older homeowners for flexible financing and income solutions,” he says. “The program enables brokers to better serve seniors and older baby boomers in high-cost housing markets.”
The fixed-rate program is available through Plaza’s wholesale channel. It covers a variety of property types from single-family to 2- to 4-unit dwellings, townhomes, condos and does not have a minimum or maximum lump sum payout requirement at closing.
Plaza’s leadership also sees strong potential for the reverse market on the heels of the COVID-19 pandemic.
“As the country begins to get back to work and is trending in that direction, seniors will continue to look at home equity as a viable part of their retirement,” Reeve says. “Whether HECMs or private products, we will continue to service brokers [in the market].”