Private Reverse Mortgage Products Fosters Evolution
With the influx of new private products for the reverse mortgages, it is clear to see that it brings evolution to market. A recent report outlines just how well the market has evolved as more products are introduced.
"On the surface, HECM marketing and proprietary marketing look similar. Both are targeting seniors who want to access home equity as a solution in retirement," according to Reverse Mortgage Daily.
"But as fewer borrowers qualify for a HECM because of lower principal limit factors, proprietary innovators have had the ability to expand their customer net this past year."
That's where private mortgage products come in. They are seen as a viable solution for situations that require special care or feature complications that normal reverse mortgages cannot fulfill.
"With the introduction of the Equity Edge products — which are geared toward borrowers as young as 60 and have homes valued at $700,000 or more — Reverse Mortgage Funding’s chief marketing officer Jean Noble said their customer base is 'so different' from what it used to be," according to RMD.
"Along with higher-value homes, the Bloomfield, N.J.-based RMF looks for borrowers interested in a line of credit or debt consolidation, as well as non-Federal Housing Administration-approved condo owners."
The report also explores a few more products that have been making a great difference for the reverse mortgage market. To learn more about private products for reverse mortgages, click on the image above.
