Reverse Mortgage Competition - Good For Consumers

5/15/2007

posted by N. Sioris

Stumble It!

Several National lenders have entered the Reverse Mortgage market recently.

Bank of America, headquartered in Charlotte, NC recently agreed to purchase Reverse Mortgage of America, a division of Seattle Mortgage Co. The acquisition will make Bank of America, the third largest originator of Reverse Mortgages, trailing only Financial Freedom and Wells Fargo.

Countrywide Financial Corp, has also launched it's own proprietary Reverse Mortgage, called "Simple Equity". Countrywide first introduced the Simple Equity Reverse Mortgage in California late in 2006. It has since been rolled out in 46 additional states.

VirtualBank, a division of Lydian Private Bank, and headquartered in Palm Beach, FL has developed three Reverse Mortgage products, collectively referred to as Lifetime Income From Equity ("LIFE").

So as you can see, the race is on. Lenders like these know a trend when they see one, and they are poised to act on the growing demand by aggressively pricing and implementing competitive new products.

This can only be good news for the consumer. If you are considering a reverse mortgage, you will have quite a few choices. And as with most products that have a high demand, the providers will compete for your business with price incentives as well as innovative and high quality products and excellent service.

Stay tuned and watch the Reverse Mortgage market explode, especially since the Baby Boomer generation is on the brink of retiring.