At one time, at that place were quite a few major bank lenders offering reverse mortgages. In fact, in the early 2000s, the majority of reverse mortgage loans were airtight past national banks.

Ane of the large bank lenders was Financial Liberty, which well-nigh recently operated under the parent company CIT Group, and previously was owned past OneWest Bank and IndyMac. At its elevation, the company originated more than xi,000 reverse mortgages annually and held the championship of top wholesale lender.

Financial Freedom reverse mortgage review

Summary:

• Financial Freedom at i fourth dimension was the largest lender in the Home Disinterestedness Conversion Mortgage (HECM) market
• The banking company operated both retail and wholesale reverse mortgage channels
• Fiscal Freedom was owned by IndyMac, which went under conservatorship of the Federal Deposit Insurance Corporation (FDIC) in 2008 and later sold to OneWest Bank in 2009.
• The company no longer operates in the reverse mortgage business concern

Financial Freedom was at 1 time a household name in the reverse mortgage business, as the company originated an average of nearly 1,000 loans per calendar month at its peak and was the meridian lender by book.

The company had a large presence both as a wholesale lender, in working with brokers across the country, and also as a retail lender, which offered loans through its in-house loan officers. In addition to originating reverse mortgages, the visitor also operated as a contrary mortgage servicer.

Before exiting the opposite mortgage concern, Financial liberty had built upwards a large portfolio, employed hundreds of loan originators and staff, and was extremely active in the market.

Several other banks share a similar story of having risen in terms of contrary mortgage volume prior to the housing market crash and immediately post-obit it, before deciding to go out opposite mortgage operations. Among them are Bank of America, Wells Fargo and MetLife Bank.

Why did Fiscal Freedom end offer reverse mortgages?

Financial Freedom has a slightly unlike story given its alter in ownership and the downfall of its parent visitor, IndyMac, post-obit the market crash of 2007 and subsequent housing market decline.

The company'south reverse mortgage book fell substantially after 2007, though it was nevertheless the top wholesale lender in 2009.

Shortly thereafter, in 2011, the company appear it would be shutting down all reverse mortgage channels, citing the regulatory environs and a demand to focus on OneWest bank'south "cadre" operations.

"After careful consideration, nosotros have decided to get out the wholesale opposite mortgage origination business organization based on the regulatory environment and the want to focus on the banking concern's core businesses," wrote CEO Michelle Minier in a letter of the alphabet to the company'south business partners.

"The wholesale opposite mortgage origination channel represents the majority of Financial Liberty's origination business concern and is the only wholesale origination channel within OneWest."

Market place factors:

  • The Groovy Recession started in 2007-2008, leading to uncertain domicile values and domicile price declines across the U.S.
  • Banking company regulations increased as a result of the Dodd-Frank Act, passed in 2010

OneWest Bank ultimately sold to CIT Group in a $iii billion transaction in 2015.

Iii years later, it completed its exit from the opposite mortgage marketplace with the sale of its servicing portfolio to an undisclosed buyer.

The proper noun Fiscal Liberty still resonates with many people in the industry as information technology was a mainstay in the business for many years.

While Financial Liberty is no longer in business, there are several active banks and not-bank lenders that do still operate in the contrary mortgage space today.

Banks such equally Yard&T Banking concern, Quontic Bank, Magnolia Bank and Resolute Bank, among many others, continue to offer these loans to qualifying senior borrowers.

Where to Go a Reverse Mortgage Today

At that place are many active lenders in the reverse mortgage space today — including both banks and not-bank lenders — also as brokers who can assist prospective borrowers navigate the unlike loan options and interest rates that are available.

A skillful place to brainstorm is gathering a few pieces of information including your age (and the age of your spouse, if yous are married), and your home address so that our reverse mortgage calculator tin can give a rough judge of the amount you may be able to borrow.