As of May 2023, Wells Fargo was the leading reverse mortgage company of all times in the United States, with nearly 163,000 loan originations. The Home Equity Conversion Mortgage (HECM) is the name given to the reverse mortgages insured by the U.S. Federal Government. Meanwhile, American Advisors Group was the largest lender by number of HECM originated in 2022.
What is a reverse mortgage?
A reverse mortgage allows homeowners aged 62 or older to receive a loan based on the home equity they have established – typically up to 80 percent of the property’s value. Unlike a traditional mortgage where monthly repayments are made, a reverse mortgage loan is only repaid when the borrower moves from the property or passes away. By this time, the borrower will owe more than what they originally borrowed because fees and interest charges are added to the balance of the loan each month. The number of HECMs in the United States has increased in recent years, with 2022 recording the highest number of loans since 2011.
Big banks quit reverse mortgage business
Wells Fargo and Bank of America are just two of the big firms that used to offer reverse mortgages but pulled back from the business. Financial services firm Wells Fargo cited an unpredictable housing market and the creditworthiness of borrowers as reasons for no longer accepting reverse mortgage applications. Earlier in 2011, Bank of America – which also used to be among the leaders in the business – also exited the reverse mortgage business.
Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans
(in 1,000s)
Characteristic
Number of loans in thousands
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Reverse Mortgage Alert. (July 12, 2023). Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans (in 1,000s) [Graph]. In Statista. Retrieved July 22, 2024, from https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/
Reverse Mortgage Alert. "Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans (in 1,000s)." Chart. July 12, 2023. Statista. Accessed July 22, 2024. https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/
Reverse Mortgage Alert. (2023). Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans (in 1,000s). Statista. Statista Inc.. Accessed: July 22, 2024. https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/
Reverse Mortgage Alert. "Leading Reverse Mortgage Companies in The United States as of May 2023, by Total Volume of Hecm Loans (in 1,000s)." Statista, Statista Inc., 12 Jul 2023, https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/
Reverse Mortgage Alert, Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans (in 1,000s) Statista, https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/ (last visited July 22, 2024)
Leading reverse mortgage companies in the United States as of May 2023, by total volume of HECM loans (in 1,000s) [Graph], Reverse Mortgage Alert, July 12, 2023. [Online]. Available: https://www.statista.com/statistics/630072/leading-reverse-mortgage-companies-usa-by-loans/