ABC News is reporting today that reverse mortgage borrowers have “little to fear” in the wake of Wells Fargo’s exit from the retail business, as it follows the departure of Bank of America from the origination business earlier this year.
In an article titled “Reverse Mortgages: Customers Have Little to Fear as Wells Fargo and Bank of America, Two Biggest Players, Exit Business,” ABC speaks with one borrower with a Bank of America reverse mortgage who expressed uncertainty regarding the status of his loan, but stresses that the two large lenders will continue to service their reverse mortgage loans as usual.
Further, the ABC coverage underscores that reverse mortgages are not going away. The article expresses a similar sentiment to New York Times coverage last week following the exit of Wells Fargo from the business.
“These products will continue to play a role for the foreseeable future,” John Lunde, president of Reverse Market Insight, told ABC. People who might need such a loan should have no trouble finding one, he says, although the providers of reverse mortgages could shift toward smaller, specialized lenders, or insurance companies like MetLife.
The article also outlines the experience of a satisfied reverse mortgage borrower who is using the loan to make home repairs with the aim of selling the home and retiring elsewhere, on the heels of a potential market upswing in the future. It also details the reasons cited by Wells Fargo in its announcement that it would be exiting the retail business, including the the unpredictability of today’s home values and Department of Housing and Urban Development restrictions “that make it difficult to determine seniors’ abilities to meet the obligations of homeownership and their reverse mortgage.”
A five-minute video accompanying the article serves as part of ABC’s Retirement Rescue Series. The video features the advice and insight of U.S. New and World Reports expert Luke Mullins, who shares his advice on reverse mortgages.
Read the ABC News article.
Watch the Video.
Written by Elizabeth Ecker
