The age requirement to qualify for a reverse mortgage keeps getting younger.
Melville, N.Y.-based Lender Lead Solutions has introduced Simple60, a new reverse mortgage product available to homeowners aged 60 and older.
Reverse mortgages offered to date have required that borrowers be at least 62 years old. And couples applying for a reverse mortgage must both meet the age requirement.
David Peskin, Lender Lead Solutions’ chief executive officer said he doesn’t anticipate Simple60 to be a substitute for home equity conversion mortgages but rather as an add-on for borrowers fitting in a specific niche.
“Census statistics tell us that the oldest of the baby boomers turned 60 last year, and more than 4.5 million seniors currently fall between the ages of 60 and 62,” Peskin said. “We feel this is the perfect time to introduce the Simple60 product.”
HECMs, or home equity conversion mortgages, are mortgages insured by the U.S. Department of Housing and Urban Development and account for nearly 85 percent of the reverse market.
Wells Fargo is considered to be the nation’s leading retail originator of reverse mortgages and announced it also has trimmed the margin it charges on the HECM adjustable by 50 basis points. Seniors who have already applied for a reverse mortgage with Wells Fargo will be offered the lower margin.