How to Serve Clients on the Borderline Between HECM and Jumbo Loans

As proprietary products gain appeal among prospective reverse mortgage borrowers, some companies are confronted with a new conundrum: prospects who qualify for both jumbo and Home Equity Conversion Mortgage (HECM) options. “California has a lot of borrowers with homes valued between $700,000 to $800,000,” says Christina Harmes, assistant manager of the C2 Reverse division of […]

The Challenges of Transitioning Between Reverse and Forward Mortgages

A climate of generally reduced reverse mortgage volume has led to more companies expanding their offerings into the traditional mortgage space. Companies like iReverse Home Loans and Nationwide Equities have made their expansion efforts into the forward space clear, but reverse mortgage practitioners seem split on whether or not reverse mortgage products are generally more […]

The Impacts of Proprietary Products on Reverse Mortgage Volume

In areas of the United States that have a prevalence of highly valued properties, jumbo proprietary reverse mortgages are increasingly becoming attractive options for lenders as the larger reverse mortgage industry observes generally reduced volume of government-insured Home Equity Conversion Mortgages (HECMs). For those companies that are active in both the jumbo proprietary business and […]

FAR Refines Proprietary HomeSafe Products, Drops Most Origination Fees

Finance of America Reverse (FAR) has announced changes implemented into its HomeSafe proprietary reverse mortgage offerings, made in an effort to tackle borrower perceptions concerning the cost of taking out a reverse mortgage loan. Among the changes FAR is making, there will be no origination fee on HomeSafe Standard, Save, Plus, and on the Flex […]

Reverse Originators See Mixed Bag in New Borrower Verification Policy

Last week, the Federal Housing Administration (FHA) issued a new mortgagee letter implementing policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. The letter applies to all FHA Title II traditional and reverse mortgages. FHA details that the new […]

Originators Point to Reverse Mortgage Safety vs. New Alternatives

As more alternative home equity tapping tools like sale leasebacks and shared equity products begin to enter conversations about retirement, more traditional reverse mortgage products are finding themselves in a more competitive environment. Originators don’t tend to see these products as threatening, but more traditional reverse mortgages may have another key advantage: borrower safety. The […]