America’s #1 Rated Reverse Lender

This Little-Known LESA Growth Feature Is a Game Changer

April 21, 2022     2 comments

This Little-Known Reverse Mortgage Feature Could Be a Game Changer Qualifying for a reverse mortgage is tougher for some people today than it has been in the past. That’s because new underwriting standards have been developed in the past year to ensure that these loan products are safer for the borrowers who use them. As of April 27, 2015, all prospective reverse mortgage borrowers are subject to a Financial Assessment, in which a lender will analyze a loan applicant’s financial history to determine if a reverse mortgage is suitable for... Read Full Article

Avoid These 3 Common Reverse Mortgage Mistakes to Protect Your Retirement

April 20, 2022     1 comment

Reverse mortgages offer homeowners aged 62 and older a powerful tool to tap into home equity, providing tax-free funds for retirement.  Whether covering medical bills, funding in-home care, or making home improvements, these proceeds can enhance financial flexibility—without the burden of state or federal income taxes.  However, their success hinges on smart decision-making.  Careless use can jeopardize your financial security and even your home. Here are three common mistakes to sidestep, ensuring your reverse mortgage supports a comfortable retirement. Mistake #1: Wasting Loan Proceeds on Non-Essentials A reverse mortgage... Read Full Article

How Reverse Mortgages Have Become Safer: Essential Protections Explained

April 15, 2022     6 comments

For years, reverse mortgages carried a stigma.  High fees, the fear of losing your home, and tales of predatory lenders made many older homeowners wary.  Yet, these loans have evolved significantly.  Thanks to robust regulations, federal insurance, and greater transparency, reverse mortgages are now safer than ever, offering a secure way for retirees to tap into their home equity. What’s changed? New safeguards protect borrowers from unfair practices, ensure clarity, and provide flexible financial options.  Let’s dive into these essential protections and see why reverse mortgages might deserve a second... Read Full Article

How to Use a Power of Attorney for a Reverse Mortgage

March 29, 2022     64 comments

I have the Durable Power of Attorney for my parents, who are age 83 and 73.  They own their home.  I am considering applying for a Reverse Mortgage for them.  What do I need to do? Great question—and perfect timing!  Understanding how to use a Power of Attorney (POA) for a reverse mortgage is far easier when you know the rules upfront.  The U.S. Department of Housing and Urban Development (HUD) provides specific guidelines for POAs in Home Equity Conversion Mortgage (HECM) transactions.  Let’s break it down so you’re prepared.... Read Full Article

Here are 3 Reverse Mortgage Examples in 2025

March 22, 2022     18 comments

Is there an example of how a reverse mortgage works? We get this question all the time from borrowers, family members, and even others in the lending industry and other professional industries who don't understand the product.  Almost everyone seems to have an opinion on reverse mortgages, often based on virtually no factual knowledge. Often, people base their opinions on something they heard; some report they read from a reporter who may not have had all the information themselves, was looking to make a sensational article or was just... Read Full Article

Bank of America Reverse Mortgage Review (2025 Update)

March 22, 2022     16 comments

Back in the early 2000s, much of the volume of reverse mortgages in the U.S. was attributed to big banks, including Bank of America. Today, that landscape has changed.  Bank of America began in the reverse mortgage space with a small retail channel, before ramping up its operations through the acquisition of Seattle Mortgage reverse mortgage business in 2007. The company then grew as both a retail and wholesale lender, meaning it offered HECM loans through its retail branches and closed loans that were originated by mortgage brokers across the... Read Full Article

HUD to Require Second Appraisal on Some Reverse Mortgages

March 21, 2022     15 comments

HUD announced today that reverse mortgage lenders could not close loans to be insured under the HECM program unless they have the reverse mortgage appraisal submitted and approved by FHA in advance.  Note that this does not say until HUD does something.  It says that the loans cannot be closed unless HUD does something on the loan before it is approved or closed. This was a huge announcement.  For the first time, HUD is stepping into the origination process of the loans and requiring lenders to submit a loan or... Read Full Article

How to Use a Reverse Mortgage Repair Set-Aside

March 21, 2022     10 comments

Hello ARLO, My mom's house is in Martinsville, IN. During a healthy economy, the house was worth around $200,000. It requires some repair. Who pays for the appraisal to determine the home value? And, are there arrangements where if repairs are required as a condition of the loan approval, can proceeds from the loan be placed towards the repair? In other words, we don't have the funds readily available to make the repair. Are there steps in the process that will tell us if we really should not go forward... Read Full Article

AAG – Nations #1 Reverse Mortgage Lender Sells Loan Portfolio

January 7, 2022     6 comments

For several years I had had borrowers tell me that this was the last-ditch pitch they received from a loan originator from a well-known competitor.  When that company could not match or beat the rate and fee structure, we offered the client their reverse mortgage transaction. They argued with the borrower that they should close a loan with their company because they were not selling the servicing on their loans, even though the loans cost more in fees and, in most instances, the rates were higher. It often meant that... Read Full Article

No Closing Cost Reverse Mortgage Options are BACK!

December 28, 2021     5 comments

Understanding No-Closing Cost Reverse Mortgages Reverse mortgages, like HUD’s Home Equity Conversion Mortgage (HECM), are often associated with high upfront fees, such as a 2% mortgage insurance premium based on the property value or lending limit (whichever is lower).  This reputation for high costs can deter potential borrowers.  However, no-closing cost reverse mortgages offer a more affordable alternative. How do they work, and what do they mean for borrowers?  Let’s explore the evolution and mechanics behind these options. The Evolution of No-Closing Cost Reverse Mortgages In 2010, HUD... Read Full Article