Companies across the reverse mortgage market are continuing to introduce or build proprietary products at a steady rate. According to a new report, more of these proprietary products are expected to continue to enter the market.
"Since November 2017 — when only one jumbo product was on the market — new proprietary reverse mortgages have been announced at a swift pace, with FAR introducing three new iterations of its ‘HomeSafe’ product, Longbridge introducing its ‘Platinum’ reverse mortgage, RMF announcing its ‘Equity Edge’ products, and One Reverse Mortgage launching the ‘HELO,’" according to Reverse Mortgage Daily.
"And alternatives to reverse mortgages have also entered the space, such as EasyKnock’s equity tapping-sale-leaseback program."
During a panel discussion at the National Reverse Mortgage Lenders Association annual conference, Longbridge Financial CEO Chris Mayer stated that he believes "any industry needs to have its own products that are not solely reliant on the government."
After an increased amount of regulations were introduced a few years ago, companies found it hard to tailor their business around constraints. However, there has been clear evolution in the products that companies in the reverse mortgage market are providing.
"I think it’s important that there’s constant product evolution that’s out there to help grow the market, and I think you’re going to continue to see more and more of that over the coming years," said David Peskin, president of Reverse Mortgage Funding.
To learn more about the future of proprietary reverse mortgage products, click on the image above.