High-profile exits shouldn’t make reverse mortgages harder to get, experts say. Other lenders are filling the void. Seniors seeking to age-in-place in their current homes sometimes seek a reverse mortgage as a way to safely tap into their home equity to help pay for senior care. The recent banking crisis has changed the landscape for reverse mortgages.
Reverse mortgages are loans for certain people age 62 and older, based in part on what their home is worth. The heavily regulated program allows a senior to receive a payment each month, against the assets of their home value which is how the term reverse mortgage was coined. Seniors must meet with a counselor to be sure they understand how this financial payment works, before the mortgage can be approved. They are heavily regulated in order to provide seniors with a safe revenue stream when they need financial assistance but are not ready to sell their home.
In February, Bank of America quit the reverse mortgage business. Wells Fargo followed this month.
Those two banks cornered over 43 percent of the market, John Yedinak, founder of the industry-news website Reverse Mortgage Daily, told Caregiverlist.com in an email interview. Some experts predict certain fees will increase because of reduced competition, The New York Times reported on June 17.
Nonetheless, the loans shouldn’t be in scarce supply, Yedinak said. “There are hundreds of lenders that offer them, as well as national brands that continue to originate the loans.”
Here are the top-8 companies still offering reverse mortgages. They’re ranked by retail volume according to a June report from Reverse Market Insight, a company that tracks the industry.
You can search for reverse mortgage lenders in your state through the Department of Housing and Urban Development’s website.
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