Livewell Reverse Mortgage Review (2023 Update)

September 23, 2021

Across the reverse mortgage lender landscape, there are a variety of company types: banks and non-banks; large national lenders; and small regional ones. Over time, many large banks have exited the reverse mortgage business, while independent non-bank lenders today comprise most of the reverse mortgage volume.

Still, there are changes that take place within the lender landscape from time to time, and 2019 was a year of major change for Live Well Financial, which today is no longer in business.

Summary:

Live Well Financial was among the top reverse mortgage companies by volume before closing suddenly in May 2019
Many Live Well staff and some of the company’s operations ultimately moved to another reverse mortgage lender called Open Mortgage
The company no longer originates loans, but anyone who closed a loan with Live Well should not be impacted by the exit

Live Well Reverse Mortgages Originated

Year	Loans	National	Market Share
2018	1,871	48,359	3.9%
2017	1,788	55,322	3.2%
2016	1,945	48,902	4.0%
2015	1,822	58,043	3.1%
2014	612	51,642	1.2%
2013	67	60,091	0.01%
2012	90	54,822	0.02%
2011	167	73,131	0.02%
2010	279	79,106	0.04%
2009	279	114,692	0.02%
2008	487	112,154	0.04%

MetLife HECM ENDORSEMENT SUMMARY REPORT BY LENDER ACTIVITY
Source: https://apps.hud.gov/pub/chums/f17fvc/hecm.cfm

Live Well’s Launch

Live Well was founded in 2005 by Michael Hild and experienced initial growth to include both call-center sales and wholesale channels. Despite reduced industry volume overall, Live Well saw some of its strongest years for sales between 2015 and 2018, when it closed close to 2,000 loans annually.

The company was also an active issuer of reverse mortgage-backed securities, known as HMBS (HECM-backed mortgage securities).

Live Well: a brief history

2005 — Live Well is founded by Michael Hild, based in Richmond, Virginia
2012 — Live Well gets approval to issue Ginnie Mae securities
2018 — The company sells its reverse mortgage servicing portfolio to Reverse Mortgage Funding
2019 — Live Well suddenly closes

What led Live Well to close?

The details of Live Well’s closure are somewhat unknown. Reports point to a substantial loan that Live Well took out from a commercial bank and a subsequent lawsuit that the bank filed against Live Well to seek repayment. Initial reports that the company was closing were confirmed when the company posted a message to its website in early May indicating it would no longer be funding loans.

Employees of the company who spoke to industry press indicated they were not made aware of the closure until it was taking place, and some employees even filed a class action lawsuit in Virginia against the company for the nature of its unexpected closure and for not providing notice as required by law.

The follow up to Live Well’s closure: Open Mortgage takes action

In the weeks following Live Well’s closing, another reverse mortgage lender took action to provide somewhat of a silver lining for the company. Open Mortgage announced in late May that it would be hiring roughly 50 former Live Well employees to work for the Austin, Texas-based company.

It’s also important to note that any borrowers who took out reverse mortgages with Live Well should not be impacted by the change. Those borrowers with existing loans should have continued service from their servicer.

Where to get a reverse mortgage

There are many active lenders in the reverse mortgage space today — including both banks and non-bank lenders — as well as brokers who can help prospective borrowers navigate the different loan options and interest rates that are available. A good place to begin is gathering a few pieces of information including your age (and the age of your spouse, if you are married), and your home address so that a reverse mortgage calculator can give a rough estimate of the amount you may be able to borrow.

Visit our Reverse Mortgage Calculator to help you get started.

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TALK TO OUR HUMAN EXPERTS TOLL FREE: 800-565-1722

LAUNCH REVERSE MORTGAGE CALCULATOR

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 20 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.

14 Comments on this Article

Rose V.
March 30th, 2023

What a surprise. I didn't even know Live Well filed BK until I read your email today. My HECM loan with live well was originated in 2018. I thought it was sold to RMF, who took over the loan around 2021. And now, the same thing happened with RMF filing for BK, but the only difference between the two is RMF announced towards the end of 2022 that they're going out of business. My loan was transferred to a different servicer. I'm not sure what to expect from the future of my loan. My husband and I are now both retired and with a fixed income. I find it very financially helpful not to pay a monthly mortgage after I lost my job in 2021. Is there a reason for us to worry after seeing two companies close their doors that took care of our HECM loan? Thank you.
Reply to Rose
- Michael Branson
  April 1st, 2023
  
  Hello Rose,
  
  You can rest assured that your loan is secure and that your access to the funds in your reverse mortgage line of credit is guaranteed by the full faith and credit of the United States with your FHA Mortgage Insurance. When Live Well claimed bankruptcy, the servicing rights to your loan were purchased by RMF because they had value. They still have value, and RMF will sell/transfer those rights to another servicer pursuant to the terms of the Bankruptcy Agreement. If it should ever become necessary, HUD would step in and begin to service the loan themselves with their servicer, CELINK.
  
  Unlike a Home Equity Line of Credit (HELOC) offered by a bank that can be closed or additional restrictions can be added later, once your reverse mortgage has closed, your loan will remain in place under the original terms for as long as you continue to live in the property and abide by the terms of the loan (pay the property charges in a timely manner and reasonably maintain the home). You have no cause for concern because the terms will remain the same regardless of who services the loan. Your servicer will contact you with the new information, and you will continue to be able to live in the home with no payments owing on the loan, just as you have been.
  Reply to Michael
Cathy M.
January 22nd, 2021

I live in 3 unit condo. One owner has reverse mortgage with "live Well financial". She owes more than present value. We Other 2 owners need to repaint building badly, she cries broke. Can we go to new holder of mortgage? How do we find out who that is? Any help would be appreciated. Thank you.
Reply to Cathy
- Michael Branson
  January 22nd, 2021
  
  Hello Cathy,
  
  Livewell Financial closed its doors in 2019 and its assets were disposed of through a Chapter 7 bankruptcy which would include loans it serviced. I would not know how to tell you to track down the Note Holder on someone else's property. The owner obviously knows, but it does not sound like she is willing to share that information with you.
  However, if the loan has exceeded the original value of the unit, then the chances are very good it has been assigned to HUD and their servicer (Novad), would now be servicing that loan. I'm not sure what they can help you with or even discuss with you including whether or not they even service a loan for any given borrower under financial privacy laws though.
  
  I hate to say it, but you should probably consult with legal counsel to determine what your next steps must be, not her lender. There should be something in the CC&R's for maintenance of the common amenities and the building(s).
  The legal documents of the project should spell out what rights and remedies owners have, both individually and as a group against an individual unit owner, under the condo documents and only an attorney versed in the laws can tell you what steps you can take at this time.
  Reply to Michael
John B.
January 21st, 2020

My mom had a reverse mortgage with live well. She had a policy to pay the house off at her death. Now the company name is Novad and they are given me a hard time. at her death I sent the death certificate in the wheel and they should have had paid it off this has been going on for 5 years.
Reply to John
- Michael Branson
  January 21st, 2020
  
  Hello John,
  Novad is HUD's servicer of the reverse mortgage. They are not a life insurance company so they would not have a policy for your mom.
  If you are referring to the HUD mortgage insurance she got when she took the loan, that is insurance that protects the lender and investors against loss and protects your mom to be sure she always receives all monies due to her under the program.
  It also protects heirs so that no matter what happens to property values, they can never owe more than the property is worth, but it is not a life insurance policy that pays the loan off when she passes.
  If she has such a policy, that would be with a separate, life insurance company and you would need to file a claim with that company, not the loan servicer.
  Reply to Michael
Jerry
August 8th, 2019

I was just made aware that my HECM servicer, LiveWell Financial, unexpectedly closed its doors in May of this year. I need to take a distribution and have no idea of how to do this now or who to contact.

My HECM mortgage closed in October of 2016. Can you point me in the direction I can go or who to contact?
Reply to Jerry
- Michael Branson
  August 8th, 2019
  
  You should still be receiving a monthly statement with your balance and all instructions for how to take a draw from your line of credit. The loans are insured by HUD and are safe still. All you need to do is contact the servicer on your monthly statement.
  Reply to Michael
David G.
June 17th, 2019

Hello, I have placed an offer on a house with a reverse mortgage by Livewell short sale. If the appraisal comes in lower than my offer will they revise the selling price to 95% of the appraised value? Thank you.
Reply to David
- Michael Branson
  June 17th, 2019
  
  Hello David,
  
  The 95% rule is for heirs of reverse mortgage borrowers who wish to keep a home on which the loan balance is higher than the current market value. If you are purchasing the home and are not the borrower's heir looking to pay off the loan and keep the property, there is no 95% provision.
  HUD allows this because they know marketing the property and paying for the sale would probably eat up that 5% anyway and this allows heirs to get a 95% loan and keep the property if they so choose. It sounds like they may already be incurring the costs of the sale if they are going through the sale process.
  However, most all sales contracts have provisions which release the buyer from having to complete the transaction if the appraised value comes in lower than the purchase price so you should be protected in that you are not over-paying for the property. And if you already have a signed contract for a sale at a set price, if the appraisal comes in higher, Livewell can't raise the price either.
  Reply to Michael
Michael
June 13th, 2019

I took out a reverse mortgage with Live Well Financial and would like to know if my surviving spouse can stay in the house if not on the reverse mortgage?
Reply to Michael
- Michael Branson
  June 13th, 2019
  
  Hello Michael,
  
  You have a couple of issues. Firstly, is the title. The loan does nothing for your claim to title. You need to make sure that your home's title is passed to you. This could be in several different manners, but I don't know why you are not on title now or if there are any other heirs with a claim to the title of the property now.
  You may want to seek the assistance of a licensed attorney to determine what it will take to secure the title to the home at this time. Even if you are the heir, if you have the right to remain in the property under the reverse mortgage or if you must now sell it, you can't do either unless you put the title in your name so this is your first priority.
  
  The next issue is the reverse mortgage with Live Well. The question is, are you an "eligible non-borrowing spouse"? If you were an eligible non-borrowing spouse at the time the loan was originated, that means you are eligible to remain in the home even after the borrower passes.
  The loan documents will have your name and the fact that you are an eligible non-borrowing spouse right on them. If you were not married at the time, the loan was closed prior to 2015 with Live Well or you were ineligible for some other reason (i.e. you did not live in the home at the time), then you would not be able to remain in the home under the terms of the existing reverse mortgage.
  However, if you resolve the title questions you still have options. You can always refinance the loan with a new loan and even a new reverse mortgage now if you qualify and you can always sell the home. If you aren't sure if you were considered eligible or non-eligible, you should look around and find the borrower's copies of the loan documents to see how you are listed.
  Reply to Michael
Mark G.
June 11th, 2019

My father has a reverse mortgage with Live Well Financial; however, we need to move him into an assisted living. The balance showing on the RM loan is $265,000.00 with the present real estate value around $225,000.00. We had hoped there would be some equity out of the home, the home market is dictating no equity after expenses. Are we entitled to remove all his possessions from the home? Should we first contact the RM and speak with them; or from reading pursue the sale and then deal with the bank; or let them foreclose?
Reply to Mark
- Michael Branson
  June 11th, 2019
  
  Hello Mark,
  
  There is no problem with you removing all his personal property. In fact, if you plan to contact Live Well Reverse Mortgage to let them know that he has moved once you are done, the property will have to be "broom clean" and his possessions removed anyway for you to have all options open to you.
  If the reverse mortgage balance owed is higher than the value of the home, you really have two options, you can choose to keep the home and pay off the loan at 95% of the current value which would be less than the full amount owed or you can choose to allow the lender to take the property so you don't have to try to sell the home which obviously will not sell for more than current value to pay the loan in full anyway. If you choose to let the lender take the property, that could happen one of two ways, through a foreclosure action or by you Deeding the property to the lender in Lieu of Foreclosure.
  
  If you choose to Deed the Property to the Lender in order to speed the process, you must remember that the lender is going to require the documentation that you have the legal right to act on behalf of your dad if he is not capable of signing on his own. If dad still has capacity, he can sign the paperwork himself or he can grant Power of Attorney (POA) to you now that gives you full authority to act on his behalf so that you can handle all the paperwork for him.
  Remember though that if you go the POA route, you will also need letters from his doctor and one other doctor (usually a second doctor in his office can perform the exam and write the letter -it is a quick examination that allows them to determine competency) that states he is of sound mind so that the POA is valid. You send this information to the lender and the lender will then work with you on the disposition of the property.
  Otherwise, the Live Well cannot give you confidential information about the loan by law. If dad lacks capacity, and you do not already have the legal documents in place to act on his behalf, it would take a court conservatorship and you may choose just to let the lender proceed with the foreclosure instead -that would have to be your call.
  
  Getting back to the "broom clean" comment for the Deed in Lieu. If you have authority to act on dad's behalf, once the home is cleared of all of dad's personal belongings, the home must be generally clean. Not scrubbed from top to bottom but "broom clean", meaning all debris must be gone. At that point, if there are no additional liens against the property, you can approach the lender about giving them a Deed in Lieu of Foreclosure.
  This helps the lender because it mitigates further losses and it helps dad and the estate because it ends the liability on the home once the lender has the title. Dad or the estate still has the liability should anyone enter the home or get hurt on the property and the sooner the property can be sold or transferred to the lender, the better for dad or the estate. In this case, since a sale by you or dad is probably out of the question, it may be better for all if you can get the property back to the lender as soon as possible to end all liability for the family, if possible. If you have any questions about the Power of Attorney, liability issues, etc., I would strongly suggest you discuss with your family attorney or an estate attorney.
  Reply to Michael