To put it simply, reverse mortgage can be categorized under home loans that possess special features. One of these special features permits you to receive cash for a certain portion of the home equity. This system of mortgage is particularly beneficial for the older generations, specifically the retired ones who do not have any means of income. This can help them positively and with its increasing benefits becoming more popular among the masses, reverse mortgages have gained immense popularity and there are several companies that are vying to provide and offer this incredible service to their customers.
Reverse Mortgage is a lending system that is typical of the United States and traditionally involves activities by large, well known banks. 2011 was the year when several famed banks emerged victorious in terms of providing reverse mortgage. To name a few, Wells Fargo, Bank of America and MetLife Bank made it to the top of the list. Of the total reverse mortgages, Wells Fargo and Bank of America were successful in generating 43 %, which was promptly followed by MetLife.
All the same, it should be noted that there has been a drastic change in the reverse loan markets and the scenario has changed quite dramatically. Earlier, it was the banks that were held in high regard when it came down to reverse mortgages. The tables were turned when in the year 2011, Wells Fargo and Bank of America found it inappropriate to provide reverse mortgages to their customers. They gave a very simple reason, which was quite the concern at the time – the dwindling prices especially concerning homes. Besides, the financial standing of the person borrowing the mortgage did nothing to influence their decision making process. This area received another blow when in 2012, MetLife made a crucial decision of parting ways with retail banking. Therefore, what the customers have today are several small scale reverse mortgage lenders mushrooming all over the globe that do not particularly have any experience in the areas of traditional banking.
It took just 2 years to completely transform the face of the reverse mortgage world. Between the years 2011 and 2013, a tremendous change took place and therefore, the popular banks that were known for providing excellent reverse mortgage services suddenly died down and were replaced by smaller known companies. As per the latest information, this year, the company that tops the list of providing ace reverse mortgage services is Liberty Home Equity Solution, which is followed by Security one Lending and American Advisors Group to secure the second and the third place respectively. The top 10 list was rounded by Associated Mortgage Bank.
Although these companies emerged victorious in the year 2013, there has been a drastic reduction in the overall volume of the reverse mortgage, 50 % to be precise. There is a possibility that the consumers have a deep sense of trust instilled in bigger, well known brands and therefore, they fail to apply the same level of trust on brands that are not that well known, despite their specialisation and area of expertise belongs specifically to the reverse mortgage area.
The best thing that you can do is familiarise yourself with these companies and learn more about their policies and standards. Usually, it is far easier to learn more about well known stalwarts like Wells Fargo since people are aware about it. However, it is also important that you go the extra mile to learn about the other reverse mortgage lenders as well before you make your decision. The best way to do this is by thumbing through reviews of people who have previously availed of their services.
