A new report is showing that reverse mortgage originators are unbothered by home equity tapping products. Reverse Mortgage Daily conducted an outreach in which originators were asked whether they saw any competition from these products and the answers were pretty positive.
"The concept of allowing equity-rich and cash-poor homeowners to tap the value in their homes in order to gain access to additional cash has been growing beyond more traditional tools like the reverse mortgage for some time," according to RMD.
"Commercially-available tools like Boston-based Hometap and San Francisco-based LendingHome are just a couple of examples of alternative ways for consumers to leverage the equity in their homes.
These products have some similar aspects to those of traditional reverse mortgages but reverse mortgage originators aren't seeing a change in their ability to generate new loans, due to home equity tapping products.
“I see reverse mortgages as a concept becoming more mainstream with more proprietary products coming online,” said Malcolm Tennant, president of Access Reverse in Clearwater, Fla., according to the report.
“Equity sharing products may open peoples’ minds to the idea of tapping home equity for retirement resources, so overall I think they are a good thing. I don’t see them as a competition because they are such a niche product and loan originators may be able to sell many of them.”
To learn more about home equity tapping products and how they compare to reverse mortgages, click on the image above.