Bank of New York Mellon is re-entering the reverse mortgage business after having exited it back it 2007. The bank is attempting to attract more business for the global custody bank’s asset management arm. Per Forbes:
The unit will purchase, securitize and service reverse mortgages and will also advise brokers, financial advisors, and asset managers on how to integrate reverse mortgages into retirement plans. This will in turn allow the bank to provide retirees with more options as a part of their retirement planning.
The U.S. retirement market forms an important part of BNY Mellon’s asset management business, with the bank ranking among the top 10 asset managers in this market. The bank’s decision to launch Home Equity Retirement Solutions will make it the only major bank to offer reverse mortgages to clients – a move clearly aimed at attracting more business in the near term.Sponsor Content