Best Reverse Mortgage Lenders of 2024: Top 20 Companies Reviewed & Rated

When used correctly, a reverse mortgage can add stability to your retirement years. Selecting the right reverse mortgage company is essential. This guide provides insight into how HECM lenders are rated and how reviews are collected across the web.

To make things easier for you, we’ve compiled a list of the top 20 reverse mortgage companies nationwide and included 5 essential tips for choosing the right lender.

Table of Contents

• 1. Choose a Lender Who Cares About Your Needs

• 2. Check Online Reviews Carefully

• 3. Review All Loan Details, Including Lender Margin and Closing Costs

• 4. Avoid Lenders Using Their Own Appraisal Services

• 5. Verify Your Lender is HUD-Approved

• Top 20 Reverse Mortgage Lenders: National Rankings

• Frequently Asked Questions (FAQs)

• Summary: How to Choose the Right Reverse Mortgage Lender

• Information for Past Customers of Inactive Companies

5 Essential Tips for Choosing the Right Reverse Mortgage Lender

1. Choose a Lender Who Cares About Your Needs

When getting a reverse mortgage, it’s important to work with a lender who truly cares about you. Don’t just focus on small savings like lower fees. Look at the overall loan terms, including interest rates and how much money you can get.

2. Check Online Reviews Carefully

Read customer reviews on reliable sites like the Better Business Bureau (BBB) or Google Ratings. Be wary of reviews on sites that might be influenced by money. Look for recurring issues in reviews and avoid lenders with consistent problems.

3. Review All Loan Details, Including Lender Margin and Closing Costs

Compare all parts of the loan, not just the fees. Pay attention to the lender margin, as a higher margin means more interest over time. Also, consider the Upfront Mortgage Insurance Premium (UFMIP), which is typically 2.0% of your home’s value.

4. Avoid Lenders Using Their Own Appraisal Services

Avoid companies that use their own appraisal services, as this can limit your options. Research, compare quotes, and ensure the loan officer and company are properly qualified.

5. Verify Your Lender is HUD-Approved

Check that the company is approved by HUD (the U.S. Department of Housing and Urban Development). Visit HUD’s website and use their Lender List Search to verify your lender’s approval.

Top 20 Reverse Mortgage Lenders: National Rankings

Lender	Rating	Years in Business	Stars (0-5)	Good Review %	Complaints	BBB Review
All Reverse Mortgage, Inc. (ARLO)	A+	20	4.99/5	99.8%	0	Source
Advisors Mortgage Group	A+	24	1.80/5	36.0%	5	Source
American Advisors Group (AAG)	A	19	4.70/5	94.0%	61	Source
American Pacific Mortgage	F	28	1.75/5	35.0%	13	Source
Ennkar Inc.	A+	14	4.00/5	80.0%	3	Source
Fairway Independent Mortgage	A+	28	4.43/5	88.6%	38	Source
Finance of America Reverse LLC (FAR)	A+	20	1.00/5	20.0%	21	Source
GoodLife Home Loans	A+	12	4.43/5	88.6%	0	Source
Guild Mortgage Company (Formerly Cherry Creek LLC)	A+	64	1.36/5	27.2%	41	Source
HighTechLending Inc	A+	18	4.93/5	98.6%	0	Source
Liberty Home Equity Solutions Inc.	A+	21	1.00/5	20.0%	3	Source
Longbridge Financial LLC	A+	12	3.95/5	79.0%	17	Source
Mid America Mortgage Inc.	A+	65	3.00/5	60.0%	0	Source
Moneyhouse	NR	NA	NA	NA	0	Source
Movement Mortgage, LLC	A+	17	4.80/5	95.6%	111	Source
Mutual of Omaha Mortgage	A+	11	4.72/5	94.4	52	Source
Open Mortgage LLC	A+	21	2.60/5	52.0%	1	Source
Plaza Home Mortgage Inc	A+	23	2.29/5	45.8%	18	Source
Smartfi Home Loans	A+	5	NA	NA	0	Source
South River Mortgage, LLC	A+	5	2.43/5	48.6%	15	Source

Top 20 HECM lenders reported by https://www.rminsight.net/wp-content/uploads/2024/06/Lenders_202405.pdf. (Reviews Updated: September 1, 2024).

Breakdown of the information presented in the chart:

Company: Names of the top 20 reverse mortgage lending companies.

Rating: The Better Business Bureau (BBB) rating ranges from A+ (highest) to F (lowest). Most companies have an A+ rating, indicating high business practice standards.

Years in Business: This column shows the years each company has been operating. It ranges from 4 years to 64 years, indicating both new and well-established companies.

Stars (0-5): This is the average customer rating for each company on a scale from 0 to 5. Ratings vary significantly, with some companies having nearly perfect scores and others as low as 1.0/5.

Good Review %: Indicates the percentage of positive reviews each company has received. This percentage varies widely, from as low as 20% to as high as 99%.

Complaints: The number of complaints filed against each company. The range is from 0 to 109, showing a varied customer satisfaction level.

BBB Review: Links to the BBB reviews of each company, offering a source for more detailed information on customer experiences.

Frequently Asked Questions (FAQs)

What banks do reverse mortgages?

Most major banks exited the reverse mortgage industry years ago. Non-bank lenders, brokers, small banks, and credit unions are now the main sources. While most reverse mortgages are insured by the Federal Housing Administration (FHA) and follow the same rules, each lender offers different margins and interest rates.

Who is the highest-rated reverse mortgage company?

To find the best-rated reverse mortgage provider, do your research from our top 20 lenders list and avoid sponsored reviews. Look for reviews on independent sites like the Better Business Bureau, Google, and Yelp.

Does HUD offer reverse mortgages?

HUD does not originate loans but approves lenders to create federally insured HECM loans. HUD insures these loans and guarantees many features and safeguards.

Are all reverse mortgage companies the same?

No. Every reverse mortgage company operates independently. HUD sets the guidelines but does not originate loans. Make sure your lender is HUD-approved and a member of NRMLA.

How do I know I’m getting the best reverse mortgage?

The best reverse mortgage fits your specific needs. Compare different offers, look at the loan terms, and ensure the lender provides clear documents. Check unbiased reviews from reputable sites like the BBB and Google.

How do reverse mortgage lenders determine the interest rates?

Lenders set interest rates based on their costs and profit margins. Research and compare rates from different lenders. Check HUD’s records for actual loan rates.

Who lends the actual money on a reverse mortgage?

Lenders use warehouse lines of credit to fund loans. HUD insures these loans, which are then pooled and sold as securities. Most reverse mortgages are HUD Home Equity Conversion Mortgages (HECM).

Which reverse mortgage companies have the lowest closing costs?

Closing costs depend on several factors, including interest rates, loan programs, and lenders. It’s important to compare the entire proposal because low closing costs might not be beneficial if they result in a higher margin, leading to fewer loan proceeds and significantly higher interest payments over the loan’s life. We strongly advocate for borrowers to make comparisons. Since interest rates and fees can change, don’t just take our word for it. Look at the actual numbers and decide what’s best for your situation.

Can a reverse mortgage lender change without the homeowner’s knowledge?

Yes, a reverse mortgage lender can sell the loan or change the servicer. The loan terms remain unchanged, and the new lender must notify you.

Can a lender lower the borrower’s benefit amount after the loan closes?

No, the lender cannot change the terms of a reverse mortgage after closing. However, you must meet certain conditions to remain in good standing with the loan.

Summary: How to Choose the Right Reverse Mortgage Lender

Reverse mortgage lenders use various methods to reach out to you. Here’s how to make a wise choice:

Look at Independent Reviews and Offers: Don’t just go by ads. Check independent reviews and compare offers.
Choose HUD-Approved Lenders: These lenders are usually direct lenders, saving you time and money.
Check for NRMLA Membership: Ensure the lender follows NRMLA code of ethics.
Avoid High-Pressure Sales: Be cautious of lenders who pressure you into quick decisions.
Get Independent Counseling: Counseling helps you understand your options and ensure a reverse mortgage is right for you.

Information for Past Customers of Inactive Companies

Lender
Wells Fargo Reverse Mortgage	Read More
Bank of America Reverse Mortgage	Read More
Financial Freedom Reverse Mortgage	Read More
MetLife Reverse Mortgage	Read More
RMS - Reverse Mortgage Solutions	Read More
LiveWell Financial	Read More
Resolute Bank	Read More

How to Find the Right Reverse Mortgage Lender?

ARLO recommends these helpful resources:

- Search for a lender by State or City
- Search for lenders by NRMLA – (National Reverse Mortgage Lenders Association)

Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 19 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

2 Comments on this Article

David R.
September 4th, 2024

In your opinion, who are the best lenders to consider that provide great customer service?
Reply to David
- Michael Branson
  September 4th, 2024
  
  Hi David,
  I'm obviously biased, but I would say All Reverse Mortgage. However, I can also point to our 4.99 out of 5 stars rating on the Better Business Bureau (BBB) and encourage you to read what actual clients have to say. The BBB and sites like Google ratings feature honest reviews from real consumers who have used our services, unlike some rating sites that exist solely to collect information to sell to lenders. These are genuine reviews from borrowers who have experienced our service firsthand.
  We are passionate about doing the right thing for our customers and putting their needs first. That's one of the most important aspects of customer service, especially when it comes to reverse mortgages. HUD controls much of the process, such as appraisals and other factors that determine how much money borrowers receive, which are beyond the lender's control. However, aspects like the margin and fees, which we consistently encourage borrowers to compare, are within the lender's control. Many borrowers find they can save money and receive more in their loan by choosing All Reverse Mortgage.
  We specialize solely in reverse mortgages. For 20 years, we've focused all our efforts on originating and closing reverse mortgages. It's not just a sideline for usâ€”it's the only type of loan we handle. We dedicate all our resources to being the best in the reverse mortgage industry, and our customer ratings reflect our success.
  I apologize if I didn't answer your question exactly as expected, but I don't often get a chance to highlight our strengths. I'm proud of our team, most of whom have been with us for over 10 years, and many since the beginning. Their passion and dedication to providing excellent customer service are why we maintain such high ratings on platforms like the BBB. So when you compare proposals from us with other lenders, remember that we offer not only fantastic rates and terms, but also a deep commitment to customer care. If our past customers' reviews are any indication, All Reverse Mortgage is a lender to seriously consider for exceptional customer service!
  Reply to Michael

Best Reverse Mortgages of 2024

ARLO™

In your current area 100 homeowners are currently utilizing reverse mortgages to better enhance their retirement years, with 500,000 nationwide!

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The minimum qualifying age for a reverse mortgage is 55

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