Finance of America has expanded its HomeSafe Second reverse mortgage product to four new markets, increasing its availability to 18 states and the District of Columbia. The company is promoting a "lifecycle lending" approach, encouraging originators to serve existing clients throughout their homeownership journey, including retirement.
The expansion of reverse mortgage products and the promotion of lifecycle lending strategies by Finance of America highlight a shift in the mortgage industry's focus towards serving the evolving financial needs of aging homeowners, potentially unlocking new revenue streams for lenders in a challenging market.
Finance of America has expanded the availability of its HomeSafe Second reverse mortgage product to four additional markets, bringing the total to 18 states and the District of Columbia. This expansion is part of the company's broader strategy to promote "lifecycle lending" within the mortgage industry.
The company argues that traditional mortgage origination models, focused solely on new purchases and refinances, are becoming less effective due to current market constraints. Instead, Finance of America suggests that originators should leverage their existing customer databases to serve aging homeowners who are entering retirement and seeking to utilize their accumulated home equity for financial planning. This approach aims to extend borrower relationships beyond the initial transaction.
Kris Buglino, Wholesale Account Executive Manager at Finance of America, stated that many originators are "fishing in only half the lake" by focusing on purchase and refinance business while overlooking homeowners whose financial needs have evolved. The company's ReverseMatch tool is designed to help originators analyze their existing client data to identify individuals who might benefit from a reverse mortgage conversation.
Finance of America also emphasizes that incorporating reverse lending can transform originators into trusted advisors rather than mere transaction facilitators. This shift can lead to deeper client relationships and collaboration with financial professionals such as advisors, CPAs, and attorneys. Karl Kuhn, VP, Reverse Mortgage Manager at American Portfolio Mortgage Corporation, noted that this has led to originators being "invited to the table" with these professionals.
To address potential hesitation from forward originators regarding product complexity, Finance of America offers dedicated training, borrower education resources, and operational support, positioning itself as an extension of the partner's team.