Reverse Mortgage Solutions
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Reverse Mortgage Solutions Inc. was created in 2007 by Bob Yeary, Kevin Gherardi, and Ken Austin. It has grown into the biggest Ginnie Mae HMBS issuer and is one of the largest reverse mortgage providers in the industry. The company is approved by Fannie Mae, the Federal Housing Administration, and the Housing and Urban Development.
Top Ranked Companies
The Good
- Approved by HUD, FHA and Fannie Mae
- Traditional HECM and H4P Loans
Approved by HUD, FHA, and Fannie Mae
Reverse Mortgage Solutions is approved by the Housing and Urban Development (HUD), the Federal Housing Administration (FHA), and Fannie Mae. This means that Reverse Mortgage Solutions is adhering to the codes and regulations of each of these companies.
Traditional HECM and H4P Loans
Reverse Mortgage Solutions gives borrowers access to equity in their home through FHA-insured reverse mortgages. To be eligible to receive a reverse mortgage:
- The loan must be for your primary residence
- The borrower must be at least 62 years of age (but there are protections in place by the FHA that allow a younger non-borrowing spouse to occupy the property once the borrowing spouse is no longer there)
- The borrower must have considerable equity in their home.
- The borrower must continue to pay property taxes, insurance, HOA fees, etc.
- The borrower must complete counseling performed by a HUD-approved HECM counselor
- The borrowers income, assets, monthly living expenses, and credit history will be verified
- The borrower must purchase flood and hazard insurance
The Bad
- Lack of Information on Website
- Lawsuit
- Sub-Servicing
Lack of Information on Website
Reverse Mortgage Solutions' website is quite difficult to understand and contains very little information for potential customers.
Lawsuit
At the time of this writing, Reverse Mortgage Solutions is currently involved in a lawsuit. Some of the company's employees have told customers that "they would have no payments with a reverse mortgage", that "they would always retain ownership", and that "they cannot be forced to leave their home".
Although in some cases this can be true, most individuals still must make a monthly payment for their homes, and there is a risk someone could be forced out of their home. Those companies that fail to clarify this are breaking Mortgage Acts and Practices Advertising Rule or "Regulation N".
Sub-Servicing
Most of Reverse Mortgage Solutions' work sourced out to other lenders.
The Bottom Line
Reverse Mortgage Solutions provides traditional HECM and H4P loans and is approved by HUD, FHA, and Fannie Mae. However, the company sub-services its work, does not provide much helpful information on its website, and is currently involved in a lawsuit.
