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.

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.

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)

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

ARLO recommends these helpful resources: 

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