Credit unions across the nation are expanding their offerings with Home Equity Conversion Mortgages, thanks to a new partnership with The Federal Savings Bank. Customers in select credit unions will be able to refer members to FSB, according to a recent report.
“We think the market is wide open,” said Mike Crossett, executive vice president, according to Reverse Mortgage Daily.
“If a credit union is not offering [HECMs] to their members and they have a population of people that have a need, those are opportunities for us to partner so they can serve those members.”
The process works directly through referrals and FSB is providing folks with additional education on reverse mortgages. With the FSB handling education and reverse mortgage loans, credit unions will still be able to provide proper customer service to their members, without have to exercise more time and resources.
"Credit unions across all states have access to the partnership, which has been in development since 2017," according to RMD.
"However, the timing of a concerted effort to launch now is tied to a new lending environment brought on by recent product changes implemented on October 2, 2017."
This is one innovative way of keeping the reverse mortgage model alive. With heightened competition in the HECM world, the FSB is now diversifying the way it reaches borrowers.
To learn more about the partnership between credit unions and The Federal Savings Bank, click one the image above.