With the Federal Housing Administration requiring approval for entire condominium complexes, the reverse mortgage business is finding a new way to help move the process forward.
"To rectify this issue, some lenders have created dedicated departments in-house to help walk condominium complexes, associations and boards through the FHA approval process, resulting in a higher probability of success among residents looking to partake in reverse mortgages," according to Reverse Mortgage Daily.
"The practice appears to be a relatively recent development, with the effort at one major lender beginning within the last couple of years."
For example American Advisors Group's condo division was developed based on the number of potential borrowers who were unable to secure a reverse mortgage due to the lack of FHA approval by their condominiums, as well as the complex nature of the rules that steer most associations away from approving reverse mortgages.
"We built this department to navigate these seniors towards FHA approval so they can utilize their home equity and enjoy a better retirement," said an AAG spokesperson, according to the report.
To learn more about these departments and how they operate to help seniors who are looking to acquire a reverse mortgage for a condominium, click on the image above.