Key facts
- Homeowners aged 55 and older possess substantial untapped equity.
- Reverse mortgages are becoming a more flexible financial tool for older homeowners.
- Eligibility for reverse mortgages has expanded to include individuals aged 55 and up.
- The market is seeing a rise in jumbo reverse products.
- Large IMBs are bringing reverse mortgage operations in-house.
- The referral network for reverse mortgages is shifting towards financial planners and CPAs.
Homeowners aged 55 and older are sitting on substantial untapped equity, a market segment that many lenders have yet to fully address. Jim Cory, Managing Director of Reverse at Guild Mortgage and a board member at the National Reverse Mortgage Lenders Association (NRMLA), explained on The Power House podcast how reverse mortgages have transformed from a product of last resort into a versatile financial instrument for older homeowners and those nearing retirement age. He noted the emergence of jumbo reverse products and the expansion of eligibility criteria to include individuals as young as 55, a significant shift from the previous 62-year-old minimum. Cory also highlighted 'reverse for purchase' as a potentially misunderstood but valuable market opportunity.