There has been an increase in the use of jumbo proprietary products in the reverse mortgage space, according to a recent report from Reverse Mortgage Daily.
“We are doing a lot more jumbos and proprietary reverse mortgages,” said Christina Harmes, assistant manager of the C2 Reverse Mortgage division of C2 Financial Corp in San Diego, Calif. in an email, according to RMD.
“In 2017, non-FHA HECMs accounted for only 2 percent of our reverse mortgages. That figure has risen to 21 percent for 2018.”
Harmes believes officers are turning towards jumbo proprietary products because they tend to be a better fit for current home values, according to the report. She also stated that it is becoming more difficult for loan officers "to survive professionally" focusing only on HECMs.
While jumbo products are gaining in popularity some folks are still choosing to go with government-insured reverse mortgages.
“Many of my clients own higher-valued properties that are jumbo-appropriate; however, so far most are still choosing HECM credit lines or tenured payments,” shares Laurie MacNaughton, a consultant and originator for Atlantic Coast Mortgage in Virginia, according to RMD.
“This is largely due to the fact much of my business comes through financial planners and attorneys, and the reverse mortgage is being established as part of a long-range financial plan.”
To learn more about jump proprietary products and their popularity, click on the image above.