Guaranteed Rate ramps up its reverse lending program

Guaranteed Rate is beefing up its reverse mortgage lending program, joining a growing number of mortgage lenders that in recent months have done the same.

The Chicago-based origination shop is launching a new training program to certify loan officers in this type of product, according to an announcement published Tuesday. The headcount of reverse mortgage specialists will also expand.

"We have been doing reverse lending for over a decade in our nationwide footprint, but we've added industry veterans Greg Gianoplus and Merrit Barber, among others, to our staff and intend to continue adding more top talent." said Jim Hettinger, executive vice president of operations at Guaranteed Rate.

The lender also announced via a press release that it will give "more systems of support to loan officers" who are originating reverse mortgage loans. These types of loans are an option for homeowners aged 62 and older that want to tap into the equity they've built up in their homes.

"These mortgages fit a very specialized segment of the marketplace, but for those seeking financial flexibility, they can be a game-changer," said Hettinger. "This ensures an extra measure of security for those looking to make their retirement years more comfortable."  

Several mortgage origination shops have also declared their intent to be more active in reverse lending.

Fairway Independent Mortgage announced in early January that it is investing what it termed as "unprecedented resources" in its reverse mortgage business. Guild Mortgage also moved to expand its footprint into reverse mortgage lending with the acquisition of Cherry Creek Mortgage, a long-time player in the reverse mortgage business.

Meanwhile, in early April, PrimeLending, added reverse mortgages to its product line "to provide homeowners with additional financial flexibility and peace of mind during their golden years," said the company's CEO Steve Thompson in a written statement.

The renewed attention to reverse mortgage products has to do with banks stepping away from reverse lending. They "left a gap" and "consolidation last year of some of the larger lenders simply increased that gap," according to Hettinger.

"This product is going to be an increasingly important financial instrument for people to utilize in their retirement years," he said. "Having an extra line of credit or steady flow of monthly deposits can go a long way toward addressing concerns about being able to pay the bills and cover living expenses."