When it comes to getting a reverse mortgage, you may start by wondering what type of lender to work with, and specifically: which banks offer reverse mortgages. Perhaps you used a national or regional bank for a mortgage loan in the past as many of the big banks offer mortgage lending services.

It’s also possible you worked with a non-bank mortgage lender, as these companies are also active in the mortgage lending space.  There are many banks that offer reverse mortgages, although most of the major national banks, such as Wells Fargo, Chase and Bank of America, do not offer them.

A representative at one of these national banks may refer you to a loan originator outside the bank if you do inquire about a reverse mortgage at one of these institutions.

Banks and non-bank lenders

Lenders fall into two categories: banks and non-banks. Banks take some form of deposit or investment from consumers, and in turn lend that money to others. Non-bank lenders or finance companies are funded in other ways.

One key difference between banks and non-bank finance companies is that banks are subject to more regulation — they also carry some insurance for consumer deposits from the Federal Deposit Insurance Corporation (FDIC). There are reverse mortgage lenders that fall into both categories; banks and non-banks.

Why don’t big banks offer reverse mortgages?

Historically, some big banks have offered reverse mortgages. In fact, Bank of America and Wells Fargo were among some of the largest reverse mortgage lenders at one point in time.

Following the financial crisis, however, both of those banks decided to discontinue their reverse mortgage operations. Bank of America announced in February 2011 that it would exit the reverse mortgage business, and Wells Fargo made a similar announcement later that year.

Wells Fargo originated more than 16,000 reverse mortgages in the prior year. Bank of America stated that reverse mortgages were not part of the company’s “core” business at the time.

Wells Fargo stated that with home price unpredictability, it was difficult to determine whether reverse mortgage borrowers would be able to meet their loan obligations.

Which banks currently offer reverse mortgages?

There are still many banks that offer reverse mortgages. They include FirstBank, Quontic Bank, M&T Bank, The Federal Savings Bank, Townebank, Goldwater Bank and many more.

Banks that Offer Reverse Mortgages (Last 12 Months)

Banking Institution Years in BusinessReverse Mortgages Originated (Last 12 Mo.)Review RatingBBB
FirstBank56103D-Rating Source
Quontic Bank1371A+Rating Source
M&T Bank16348A+Rating Source
The Federal Savings Bank714A+Rating Source
Townebank3129A+Rating Source
Goldwater Bank129N/ARating Source
Resolute Bank1238A+Rating Source
List of banking institutions that have closed reverse mortgages within the last 12 months.
Data Source: https://apps.hud.gov/pub/chums/f17fvc/F17FVCQ-20190101.txt

There are also many banks that do not offer reverse mortgages but can point you in the direction of a loan originator who can help you learn more.

Bank FAQs


Which banks currently offer reverse mortgages?

Currently there are a multitude of banks that offer reverse mortgages. Some of those include FirstBank, Quontic Bank, M&T Bank, The Federal Savings Bank, Townebank and Goldwater Bank.

Does Chase Bank offer reverse mortgages?

As of December 2022, Chase Bank does not offer reverse mortgages.

Why don’t big banks offer reverse mortgages?

It is not fully known why the big banks do not offer reverse mortgages at this time. Wells Fargo and Bank of America previously offered reverse mortgages but ceased all Originations of reverse mortgages many years ago. It is widely speculated that the absence of financial requirements related to credit and income from HUD as a requirement to get a reverse mortgage led to the larger banks withdrawing from offering the program. HUD did not implement any financial assessment guidelines until 2015 which was many years after the big banks exited the industry.

Is there an advantage to working with a bank over a mortgage lender?

There is not usually an advantage to working with a bank over a mortgage lender unless that bank has a proprietary product that a lender does not have. Approximately 90% or more of reverse mortgages completed are under the Home Equity Conversion Mortgage (HECM) which is insured by HUD and the parameters and requirements for HECM’s are the same for banks and mortgage lenders.

Are there any proprietary reverse mortgages that banks offer than mortgage lenders do not?

As of December 2022, there are no proprietary products in the market that are being offered exclusively by a bank. All proprietary products in existence at this time were developed by mortgage lenders.

Does the Bank take your home with a Reverse Mortgage?

No. The reverse mortgage is just a loan on your home and the title to your home remains with you the homeowner. You can sell your property or pay off the reverse mortgage at any time.


  • Lenders fall into 2 categories, Banks and non-Banking lending institutions.
  • Since FHA insures nearly 99% of reverse mortgages available today, there is no advantage utilizing a bank to secure a reverse mortgage over a non-bank reverse mortgage lender or mortgage broker.
  • Large national banks exited the reverse mortgage space in 2012 siting difficulties with regulatory environment (Dodd-Frank) and the inability to create underwriting overlays. (Prior to HUD creating financial assessment guidelines.)
  • Small banks still offer reverse mortgage loans usually as a correspondent through larger reverse mortgage wholesale lenders.
  • It is wise to compare reverse mortgage rates and fees with both banks and non-bank lenders as each have the ability to set their own margins.

Where can I get more information about reverse mortgages?

Try ARLO™ calculator offering real-time interest rates and expert program recommendations.  If you have a question or comment about these banks leave your comment below or call our experts Toll Free (800) 565-1722

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