Borrowers Look To Private Reverse Mortgages Below Jumbo Values
According to a recent Reverse Mortgage Funding webinar, borrowers seeking proprietary reverse mortgages are not necessarily seeking loans in the jumbo market.
"While most proprietary reverse mortgages have maximum loan amounts of up to $4 million – including RMF’s Equity Elite – Barnes shared that some of the greater flexibility granted by proprietary products are attracting more borrowers that would previously have only been served by a traditional HECM," according to Reverse Mortgage Daily.
The report also revealed that upfront costs with proprietary reverse mortgages are lower than traditional HECM loans.
"We’ve been serving a lot of cost-sensitive borrowers who — even if a HECM is a great solution for them — just cannot stomach paying two points upfront in MIP. We’ve been tapping a good number of those borrowers here over the last year," according to Mark O'Neil, national wholesale and correspondent sales leader at RMF, according to RMD.
Furthermore, the article also mentions that debt consolidation is another attractive opportunity within proprietary reverse mortgage loans for prospective borrowers.
To learn more about why borrowers below the jumbo max are choosing proprietary reverse mortgage products, click on the image above.
