When getting a reverse mortgage, you may wonder which type of lender you should work with.  Then, more specifically, which banks offer reverse mortgages.  You may have used a national or regional bank for a mortgage loan in the past, as many big banks provide mortgage lending services.

You may have worked with a non-bank mortgage lender, as these companies are also active in mortgage lending.  Many banks offer reverse mortgages, although most 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’d like to ask about a reverse mortgage at one of these institutions.

ARLO explaining about banks that offer reverse mortgages

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 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).  Some reverse mortgage lenders fall into both categories: banks and non-banks.

Why don’t big banks offer reverse mortgages?

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

However, after the financial crisis, Bank of America and Wells Fargo Bank discontinued their reverse mortgage operations.  Bank of America announced in February 2011 that it would exit the reverse mortgage business.  Wells Fargo made a similar announcement later that year.  MetLife exited banking entirely, selling their deposit business to GE Capital Retail Bank, FSB.

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 took time to determine whether reverse mortgage borrowers could meet their loan obligations.

Which banks currently offer reverse mortgages?

There are still many banks that offer reverse mortgages.  They include The Federal Savings Bank, Magnolia Bank, Bank of England, University Bank, Townebank, and others.

Top 5 Banks that Offer Reverse Mortgages in 2023

Banking Institution Years in BusinessReverse Mortgages Originated (Last 12 Mo.)Review RatingBBB
The Federal Savings Bank121354.48/5Rating Source
Magnolia Bank1041313.43/5Review
Bank of England124871.62/5Rating
University Bank2745N/ARating
Townebank35332.5/5Rating Source
List of banking institutions that have closed reverse mortgages within the last 12 months. (Data from April 01, 2022, to March 31, 2023). Source: https://entp.hud.gov/sfnw/public/

Many banks do not offer reverse mortgages but can point you toward a loan originator who can help you learn more.

Is there a disadvantage to working with a non-bank lender?

There is not.  Reverse mortgages are unlike traditional mortgages, where a lender was known to originate a loan for their portfolio (which very few loans are these days, even with forward or traditional lending).  Most reverse mortgages closed today are the HUD Home Equity Conversion Mortgage (HECM), meaning they all follow the same HUD guidelines.

If all the loans follow the same guidelines, it comes down to the pricing and the service you receive from the lender.  So, even if you are a “bank person,” be sure to check the ratings and the services available at All Reverse Mortgage, Inc., and we will be happy to show you how to save more and get better service, all while getting the same loan!

Top FAQs


Which banks currently offer reverse mortgages?

Currently, there is a multitude of banks that offer reverse mortgages.  Those include The Federal Savings Bank, Magnolia Bank, Bank of England, University Bank, and Townebank.

Does Chase Bank offer reverse mortgages?

As of September 2023, Chase Bank does not offer reverse mortgages.

Why don’t big banks offer reverse mortgages?

It has yet to be fully known why the big banks do not offer reverse mortgages at this time.  Wells Fargo, Bank of America, and Metlife Bank 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, many years after the big banks exited the industry.

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

Approximately 90% or more of reverse mortgages completed are under the Home Equity Conversion Mortgage (HECM) insured by HUD.  The parameters and requirements for HECMs are the same for banks and mortgage lenders.  There is usually an advantage to working with a bank over a mortgage lender if that bank has a proprietary product that a lender does not have. However, if your goal is the HUD HECM loan, there is no benefit to using a more expensive bank than a HUD-approved reverse mortgage lender.  It is often more expensive and takes longer than using a highly-rated lender like All Reverse Mortgage, Inc.

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

As of September 2023, no bank offers exclusively proprietary or jumbo products in the market.  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 anytime.


  • Lenders fall into two categories: Banks and non-banking lending institutions.
  • Since FHA insures nearly 99% of reverse mortgages available today, there is no advantage in using a bank to secure a reverse mortgage over a non-bank reverse mortgage lender or broker.
  • Large national banks exited the reverse mortgage space in 2012, citing difficulties with the regulatory environment (Dodd-Frank) and the inability to create underwriting overlays.  (Before HUD created financial assessment guidelines.)
  • Small banks still exclusively offer reverse mortgage loans, usually as a correspondent through larger reverse mortgage wholesale lenders.

Where can I get more information about reverse mortgages?

Try the ARLO™ calculator, which offers real-time interest rates and expert program recommendations.  If you have questions or comments about these banks, comment below or call our experts at (800) 565-1722.

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