Reverse Mortgage Co. Revamps Name, Brand
Reverse mortgages are hot -- so much so that companies in the space are realizing they should put the word "reverse" in their corporate names. The latest is OmniHome Financing, which said Thursday it had rebranded itself as Omni Reverse, and moved into new headquarters in Mission Viejo, Calif. Omni Reverse is ranked as the largest privately-held reverse mortgage originator in the country, according to Reverse Mortgage Insight, an industry trade publication. The reverse mortgage sector is a rapidly growing segment of the market, but the company told HW it still feels the business in relatively unknown by the majority of the public. "We believe that operating as Omni Reverse will make our primary mortgage offering easier for consumers to understand than OmniHome Financing," said David Bancroft, president at OmniHome. He also pointed to 80 million baby boomers entering retirement over the next few years as proof of the pending growth in the industry, saying that Omni Reverse will offer them a way to safely extract equity from their homes. While proponents of reverse mortgages say the products are safe, a growing number of consumer groups and even industry experts caution against overuse of the products. One source, a banking executive that asked not to be named, characterized reverse mortgages as "the latest attempt to separate homeowners from their accrued equity." Nonetheless, given the generally paltry savings rate associated with most Baby Boomers, finding some way to fund retirement expenses is quickly becoming a priority, and industry experts tell HW that reverse mortgages seem likely to become an instrument of choice for Boomers who have used their home as their primary source of investment. "Boomers are going to need to fund their retirement from somewhere," said the banking executive. "For many, they might not have any choice but to convert existing home equity. It's a better option than a line of credit." For more information, visit http://www.omnireverse.com.