In 2025, only a small number of regional and specialty banks offer reverse mortgages, including University Bank, The Federal Savings Bank, and Magnolia Bank. Most large banks left the market years ago, so many borrowers choose specialized non-bank lenders for better rates and service.

Do Banks Offer Reverse Mortgages in 2025?

While large national banks like Wells Fargo, Bank of America, and Chase are familiar names for traditional mortgages, they no longer offer reverse mortgages.  Most exited the market over a decade ago, citing regulatory changes, market risk, and shifting business priorities.

Instead, today’s reverse mortgages are primarily offered by:

• Specialized non-bank lenders (like us – All Reverse Mortgage, Inc.)
• Smaller regional banks that act as correspondents for wholesale reverse mortgage lenders
• Mortgage brokers with access to multiple funding sources

Bottom line: Whether you work with a bank or a non-bank lender, all FHA-insured Home Equity Conversion Mortgages (HECMs) follow the same federal guidelines — so your focus should be on rates, margins, fees, and customer satisfaction, not the brand name alone.

Why Major Banks Stopped Offering Reverse Mortgages

From the early 2000s to approximately 2012, major banks such as Wells Fargo, Bank of America, and MetLife Bank were significant providers of reverse mortgages.  But several factors caused them to exit:

• 2011 – Bank of America leaves, citing that reverse mortgages no longer fit its core priorities.

• 2011 – Wells Fargo exits, citing concerns over home values and borrower obligations.

• 2012 – MetLife leaves banking entirely, selling its deposit business and ending reverse mortgage programs.

• 2015 – HUD introduces financial assessment rules, making the loans safer for borrowers but less attractive to large institutions focused on volume.

Recent industry shifts — such as AAG selling its servicing portfolio — indicate that even large non-bank lenders are reevaluating their approach to reverse mortgages.

Banks vs. Non-Bank Lenders: What’s the Difference?

When exploring reverse mortgage options, it’s important to understand the distinction between banks and non-bank lenders.

Banks fund loans using customer deposits and offer protection from the Federal Deposit Insurance Corporation (FDIC) for those deposits.  They operate under strict regulations to ensure the safety of depositors’ money.  Non-bank lenders, on the other hand, rely on alternative funding sources and do not offer FDIC insurance, though federal and state authorities still regulate them.

Some lenders may operate as a hybrid, functioning as both a bank and a non-bank lender.  However, for reverse mortgage borrowers, the type of lender typically does not affect the overall loan process.  Regardless of the lender’s structure, the focus should remain on finding a reputable company that specializes in reverse mortgages and offers transparent terms.

Evaluating Non-Bank Lenders for Reverse Mortgages: Pros and Cons

When considering a reverse mortgage, both banks and non-bank lenders typically offer HUD Home Equity Conversion Mortgages (HECM) that follow the same federal guidelines.  However, differences in service and pricing can set lenders apart.

While some borrowers may feel more comfortable with traditional banks, non-bank lenders like All Reverse Mortgage, Inc. often offer several advantages.  These lenders frequently offer more competitive pricing, reduced fees, and personalized customer service while maintaining the same HECM loan terms.

Ultimately, the choice comes down to selecting a lender that meets your specific needs and delivers exceptional support throughout the reverse mortgage process.  Comparing options ensures you get the best possible terms and experience.

Tip: Most borrowers choose direct lenders for faster service, specialized expertise, and lower costs.

Frequently Asked Questions

Key Takeaway: Banks and non-bank lenders offer reverse mortgages under the same FHA HECM guidelines.  However, non-bank lenders often provide faster service, more competitive pricing, and specialized expertise, while banks may offer fewer options and slower processing times.