The summer is going to heat up but we are not talking about the temperature. A new report reveals that private reverse mortgages are going to increase this summer with more companies jumping into the market.
Along with Reverse Mortgage Funding's Equity Edge Reverse Mortgage sector, Longbridge Financial and Finance of America Reverse are both planning to make a splash in the private reverse mortgage world.
“The idea that nearly our entire industry relies on the federal government for what it does, in addition to all of the state rules .. it’s really hard to run a business that’s so heavily dependent on Washington,” said LongBridge Financial CEO Chris Mayer, according to a Reverse Mortgage Daily report.
“It is important to offer non-FHA reverse mortgages so the industry is insulated from policy changes and can serve a wider variety of customers.”
For Finance of America Reverse, the company is planning on introducing a "Flex" version of the already existing HomeSafe jumbo mortgage product. Folks will be seeing a wave of private reverse mortgage options this summer and it could be just the beginning.
"RMF started the wave Monday with the introduction of the Equity Edge, aimed at prospective borrowers with homes valued at $700,000 or more," according to the RMD report.
"Rolling out to five states starting June 1, the proprietary loan represents a reaction to the October 2 principal limit factor reductions — which accelerated the Bloomfield, N.J.-based company’s plans to enter the private market."
To learn more about these jumbo products and what to expect from the three aforementioned companies, click on the image above.