Mortgage

Finance of America Reverse reduces cost of proprietary reverse mortgages

Ditches origination fees, adds lender credits to combat cost concerns

Finance of America Reverse announced it has taken steps to reduce the cost of two of its most popular proprietary reverse mortgage products, the HomeSafe Standard and the HomeSafe Flex.

The lender said it has dropped origination fees – reducing overall cost by about $7,000 to $8,000 – and is offering lender credits on customary closing costs on certain products for eligible borrowers.

FAR said the change is intended to offer borrowers more cost-effective loan options when considering a reverse mortgage, a move that directly combats the long-held criticism that reverse mortgages are too expensive.

FAR, currently ranked No. 2 on the top 100 HECM lenders list, has been blazing trails on the development of non-agency, or jumbo, reverse mortgage products.

While FAR’s original HomeSafe Standard has been the market’s sole proprietary offering since 2014, a wave of new products has hit the market in the last year, with FAR releasing several iterations of its HomeSafe that boast features like a line of credit or a second lien option that are not available with the Federal Housing Administration’s HECM.

With an eye turned toward offering seniors more “holistic” retirement solutions, the lender said it plans for continued expansion in the near term.

“FAR anticipates further exciting developments in the coming months, and we continue to expand to new states across all products,” a spokesperson told HousingWire. “We are specifically targeting rapid expansion for our newest product, the HomeSafe Select.”

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