What is a HECM?

A Home Equity Conversion Mortgage (HECM) is commonly known as a reverse mortgage and is FHA insured. A reverse mortgage is a loan secured by a home, but, unlike a traditional mortgage, repayment is deferred to a later date, typically at the sale of the home.

A HECM can have a fixed rate or adjustable rate, either monthly or annually. In a fixed-rate HECM, the borrower receives all of their proceeds at loan closing, and the loan cannot be drawn from in the future. An adjustable-rate HECM is open-ended, allows for future draws, and allows for periodic prepayments that may increase the ability to borrow in the future. An adjustable-rate HECM contains a line of credit that is not taxed to the borrower when drawn. This provides a safe solution with built-in, no recourse equity protections for adults 62+ and their heirs.

Types of Reverse Mortgage Loans

  • Insured by FHA
  • Proprietary HECM’s
    (not insured by the FHA, popular for adults 55+)

A reverse mortgage is an FHA product with requirements and rules that require Lenders to have a unique LOS for proper loan manufacturing. ReverseVision not only provides lenders with a reverse LOS, but also provides experience & best practices shared across our Lender ecosystem.

What is a Forward Mortgage?

A forward mortgage is the traditional mortgage a typical homeowner seeks. This mortgage is paid on a regular amortized schedule. These mortgages can be classified as FNMA, FHLC, FHA, VA, USDA, non-QM, and proprietary lending programs.

MBA Educational Webinar: Rethink Product Lines (and Profits) with Reverse Mortgages.

Reverse mortgages are still one of the best kept secrets among certain lenders. That’s because most lenders don’t realize that this rapidly growing market can provide a profitable revenue stream that yields high satisfaction ratings, not only among customers, but among originators and staff as well. With seniors holding a historic 9+ trillion dollars in home equity, now is the perfect time to reinvigorate your lending strategy and better serve senior clients.

In this webinar, learn how to rethink lending options for your clients 62+, process more loans, create new partnerships and gain access to tools & resources that will help you separate yourself from the pack and lead new revenue growth for your business. Learn how to reimagine your lending portfolio and take it to the next level.

Speaker: Sunny Mahdii, VP of Customer Success, ReverseVision