Finding a good lender for a reverse mortgage isn’t as easy as shopping for a regular home loan. A reverse mortgage is bit more complicated and requires more expertise. We’ve put together this guide to help you learn about what to look for in a lender. We’ll also cover the top companies in operation today, along with a little history.

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Here’s what you’ll find below:

• Finding the Right Lender
• Best Reverse Mortgage Companies of 2024
• Lenders Near You
• Top Lenders by Year
• Reviews and Profiles

How to Find a Lender

Your first step should be to complete a reverse mortgage counseling session with a counselor approved by the U.S. Department of Housing and Urban Development, or HUD. This is required of all home-owners who apply for a Home Equity Conversion Mortgage (HECM), partly because the loan is backed by the federal government.

The counseling costs about $125 and is free to low-income applicants. Once done, you’ll receive a completion certificate and can apply for a HECM.

To find a lender, you’ll have to look beyond traditional mortgage lenders since they usually don’t offer a HECM, as we’ll cover below. Instead, you need to look for companies that specialize in this specific loan.

When comparing reverse mortgage lenders, ask lenders to fill out the Total Annual Loan Costs, or TALC, form. This is like a Good Faith Estimate and Truth-in-Lending disclosure forms you’d see when applying for a home loan. TALC is the main disclosure form for a reverse mortgage.

TALC will allow you to compare all of the costs of a reverse mortgage.

Look for a lender that belongs to the National Reverse Mortgage Lenders Association, or NRMLA, or is a member of the National Association of Mortgage Brokers, or NAMB. Both must adhere to high ethical standards.

5 Qualities of a Good Lender

Once you’ve narrowed down your list of lenders, talk to a few to see if they’re a good fit for you. Ideally, they should have these qualities:

1. Responsive
2. Walk you through the process
3. Questions welcomed
4. Working for you, not themselves
5. No pressure

Responsive

If they return your call within one hour, that’s a good sign.

Walk You Through the Process

They go out of their way to walk you through the reverse mortgage process. Everything should be explained in plain English.

Questions Welcomed

The type of loan you get can depend on many factors, including how long you expect to live there, why you need the money, and your estate plan. They should ask about your situation and welcome questions about the loan.

Working for You, Not Themselves

Instead of adhering to their schedule, a good lender will work at your convenience. Documents will be provided to you early to review, and they’ll contact you in the way that works best for you, such as email, phone or text.

No Pressure

A good lender will show you the best options and give you time to make a choice. They won’t rush you and will give you all the time you need to make the decision that makes the most sense for you.

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The Ten Best Reverse Mortgage Companies Today by Total Volume

In the past, this list was headlined by large brand-name banks. Now, the top originators are mainly companies focused exclusively on HECM loans. Here are the biggest lenders for September 2024, the most recent month with published data:

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Historically, the Home Equity Conversion Mortgage (HECM) program in the United States was dominated by large banks. In 2011, the largest providers were Wells Fargo, Bank of America, and MetLife Bank. Wells Fargo and Bank of America accounted for 43% of all originations, and MetLife originated about the same number of loans as 4th and 5th place combined.

However, today’s market looks nothing like the past. In 2011, Bank of America and Wells Fargo both left the business, citing concerns over falling home prices and the inability to make lending decisions based on the borrower’s financial standing. In 2012, MetLife exited the business as part of its decision to move away from retail banking. The market is now dominated by originators who do not serve the functions of traditional banks. The traditional big banks have shown little to no interest in re-entering the market.

As of the end of September 2024, here are the top lenders of all time by total originations. We have also included total maximum claim amount for another point of reference:

As you can see by comparing these two tables, the change is very pronounced, and many analysts estimate that around 50% of potential volume is lost after the exit of the big brands. Do consumers trust these smaller lenders, many of whom specialize in originating only HECM loans?

Find a Lender Near Me

We’ve also put together guides for specific states designed to give seniors relevant, localized information. You can compare recent interest rates averages and learn about the top lenders in your area. You can check out these guides by following the relevant link below:

• Alabama
• Alaska
• Arizona
• Arkansas
• Colorado
• Connecticut
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Massachusetts
• Maine
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• North Carolina
• North Dakota
• Oklahoma
• Oregon
• Pennsylvania
• South Carolina
• Tennessee
• Utah
• Virginia
• Washington
• Wisconsin

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Top Lenders by Year

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Reviews & Profiles

It’s easy to find a review of Bank of America or Wells Fargo – even your average citizen on the street is likely to have an opinion of some kind. It’s even relatively easy to find information about smaller traditional originators, many of whom are reviewed online daily. However, you will find that it’s far more difficult to locate objective information about many of the companies that we listed above.

Here are a few short profiles of some of the top lenders:

American Advisors Group (AAG)

AAG is the largest reverse mortgage lender in the United States and has been since 2012 when the big banks exited the industry. You can read our review of AAG or visit them directly.

Reverse Mortgage Funding (RMF)

You can read our review here.

Security 1 Lending & Reverse Mortgage Solutions

Though S1L no longer exists and RMS exists only to service and subservice reverse loans, our historical review is located here.

Associated Mortgage Bankers (AMB)

Better known as AMB and headquartered in Garden City, NY. Founded over 22 years ago, the company specializes in the HECM product, and it has grown as large banks such as MetLife have exited the industry. AMB is licensed in the following states: Arizona, Utah, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Maryland, New Jersey, North Dakota, Oregon, Oklahoma, Pennsylvania, Tennessee, Vermont, Virginia, Washington, Wyoming, Texas, and the District of Columbia.

1st Reverse Mortgage USA

1st Reverse USA, a division of Cherry Creek Mortgage Company, is consistently one of the top HECM originators in the United States. Headquartered in Lakewood, Colorado, the company operates branches in 11 states and serves another 10 states. This includes Arizona, California, Colorado, Illinois, and Texas. Cherry Creek, the parent company of First Reverse, was founded in 1987. In addition to its core lending business, they also maintain the First Reverse Lender Network in which the company partners with community banks, credit unions, and FHA-approved mortgage banks.

Generation Mortgage

In late 2014, Generation shut down its origination business. Prior to this decision, Generation was one of the few companies to offer a proprietary reverse loan as an alternative to the ubiquitous HECM product. It was an option for seniors with home values above the FHA’s limit of $625,500.

About the Editor

Aaron Crowe is a freelance journalist who specializes in writing about personal finance. He has written for AOL, U.S. News & World Report, WiseBread, Bankrate, AARP, Allstate Insurance, Wells Fargo, newspapers, and various websites about credit, retirement, mortgages and related topics. You can find his work at AaronCrowe.net or on Twitter @AaronCrowe.

More Resources

Disclosure Requirements for Reverse Mortgages, Consumer Compliance Outlook
National Association of Mortgage Brokers
2 Big Banks Exit Reverse Mortgage Business, New York Times
MetLife Exits Reverse Mortgage Business, MetLife.com