MetLife to Provide Reverse Mortgage Program for ABA Banks
The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements. This recent deal on the origination side of reverse mortgages comes after a report last week that some demand is growing on the secondary side. Ginnie Mae guaranteed and issued its first real estate mortgage investment conduit (REMIC) based on reverse mortgages last week. Under the program, MetLife will attempt to streamline the broker and correspondent approval system for ABA-member banks and allow access to MetLife research and education materials for older borrowers. MetLife Home Loans is a subsidiary of MetLife Bank, which offers multiple banking products and services. The majority of the ABA’s members are banks with less than $125m in assets but represents more than 95% of the industry’s $13.5trn in assets. Write to Jon Prior.