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.

ARLO presents top 5 reverse mortgage lender tips

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.

HUD approved reverse mortgage lender search

Top 20 Reverse Mortgage Lenders: National Rankings

LenderRatingYears in BusinessStars (0-5)Good Review %ComplaintsBBB Review
All Reverse Mortgage, Inc. (ARLO)A+204.9/599%0Source
Advisors Mortgage GroupA+241.6/533%5Source
American Advisors Group (AAG)A194.7/595%73Source
American Pacific MortgageF281.5/530%16Source
Ennkar Inc.A+133.6/573%3Source
Fairway Independent MortgageA+284.8/596%45Source
Finance of America Reverse LLC (FAR)A+201/520%19Source
GoodLife Home LoansA+114.4/588%0Source
Guild Mortgage Company (Formerly Cherry Creek LLC)A+631.3/526%42Source
HighTechLending IncA+184.9/598%0Source
Liberty Home Equity Solutions Inc.A+201.0/520%3Source
Longbridge Financial LLCA+114.0/580%16Source
Mid America Mortgage Inc.A+653/560%0Source
Movement Mortgage, LLCA+164.7/595%111Source
Mutual of Omaha MortgageA+114.8/596%56Source
Open Mortgage LLCA+212.7/554%21Source
Plaza Home Mortgage IncA+232.1/542%24Source
Smartfi Home LoansA+5NANA0Source
South River Mortgage, LLCA+52.4/549%14Source
Top 20 HECM lenders reported by https://www.rminsight.net/wp-content/uploads/2024/06/Lenders_202405.pdf. (Reviews Updated: June 16, 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

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

How to Find the Right Reverse Mortgage Lender?

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