Reverse Mortgage Funding

About 

Reverse Mortgage Funding LLC is a national reverse mortgage lender helping elder Americans fund their retirements. The company was the number one HECM Backed Securities issuer in 2018 and serviced over 84,000 reverse mortgages. RMF was established in 2012. Its headquarters are in New Jersey. The corporate offices are in New York and California, while the field offices are located across the country. The company is wholly owned by the Reverse Mortgage Investment Trust Inc. It is a specialty finance company in the reverse mortgage niche.

The main and only focus of the lender is reverse mortgages. It issues, invests in, and manages reverse mortgage loans. The ultimate goal of Reverse Mortgage Funding is to help the old and retired Americans to experience the dream lifestyle.

RMF has 98% Customer Satisfaction, 4.9 out of 5 points on Lending Tree, rated excellent on Trustpilot, and an A+ rating by the Better Business Bureau.

Key Features

1. Eligibility. Homeowners must be at least 62 years old, own their home outright or have a significant amount of equity in their home, and live in the home as their primary residence.
2. Loan amount. The amount of cash that can be obtained through RMF depends on several factors, including the age of the homeowner, the value of the home, and the current interest rates.
3. Repayment. The loan does not need to be repaid until the homeowner moves out of the home, sells the home, or passes away. At that point, the loan is typically paid off through the sale of the home.
4. Interest rates. RMF loans may have fixed or adjustable interest rates, and the interest accrues over time.
5. Fees. RMF loans typically have upfront fees, ongoing fees, and closing costs that are added to the loan balance.
6. Counseling. Homeowners who are considering an RMF loan must complete mandatory counseling to ensure they understand the terms of the loan and any potential risks.
7. Federal insurance. RMF loans are insured by the Federal Housing Administration (FHA), which provides a level of protection to homeowners and lenders.

Pros and Сons

Here are some potential pros and cons of using Reverse Mortgage Funding for a reverse mortgage loan.

Pros

• Provides a way for homeowners aged 62 and older to access the equity in their homes without selling their home or making monthly mortgage payments.
• Offers a variety of loan options to meet the needs of individual borrowers, including both fixed and adjustable interest rates.
• Has an A+ rating with the Better Business Bureau.
• Provides extensive educational resources for borrowers to help them make informed decisions about whether a reverse mortgage loan is right for them.

Cons

• Fees associated with a reverse mortgage loan can be higher than those for a traditional mortgage loan, including origination fees, mortgage insurance premiums, and servicing fees.
• Interest rates for reverse mortgage loans may be higher than those for traditional mortgage loans.
• Borrowers may have to pay off the loan in full if they move out of their home or pass away, which could impact their heirs or other beneficiaries.
• Reverse mortgage loans not be the best option for borrowers who plan to sell their home or move within a few years, as the costs associated with the loan may outweigh the benefits.

It's important to carefully weigh the pros and cons of a reverse mortgage loan before making a decision, and to work with a reputable lender like RMF.

Products

Some of the products offered by RMF include:

1. Home Equity Conversion Mortgage (HECM). A government-insured reverse mortgage that allows homeowners to convert a portion of their home equity into cash.
2. HECM for Purchase. A reverse mortgage that allows homeowners to use the proceeds from the sale of their existing home to purchase a new home.
3. HECM Line of Credit. A line of credit that allows homeowners to access their home equity as needed, while only paying interest on the funds that are withdrawn.
4. HECM Refinance. A reverse mortgage that allows homeowners to refinance their existing mortgage and access additional equity.
5. Equity Elite. A proprietary reverse mortgage that allows homeowners with higher-value homes to access more of their home equity than is typically available through a government-insured HECM.

Each of these products has its own features, benefits, and costs, and RMF can work with homeowners to determine which product is the best fit for their financial needs and goals.

Reliability

Reverse Mortgage Funding is a reputable and reliable lender in the reverse mortgage industry. Here are a few reasons why:

1. Industry experience. RMF has been providing reverse mortgages for over a decade, and its leadership team has decades of experience in the mortgage industry.
2. Customer satisfaction. RMF has received positive reviews from many of its customers, with high ratings for its customer service and the overall loan process.
3. Accreditation. RMF is accredited by the Better Business Bureau (BBB) and has an A+ rating, which reflects its commitment to transparency and ethical business practices.
4. FHA approval. RMF is approved by the Federal Housing Administration (FHA) to offer Home Equity Conversion Mortgages (HECMs), which means that it meets the FHA's strict standards for loan quality and borrower protections.
5. Educational resources. RMF offers a range of educational resources for potential borrowers, including a blog, FAQs, and personalized guidance from its loan specialists, which helps ensure that borrowers understand the product and can make informed decisions.

It's always a good idea to do your own research and compare lenders before making a decision, but RMF is generally considered a reliable and trustworthy option in the reverse mortgage industry.

Funding a Loan

Reverse Mortgage Funding funds its loans through a combination of its own resources and partnerships with third-party investors. Here's how it works:

1. RMF originates and underwrites the loan. RMF works directly with the borrower to originate and underwrite the loan, which involves verifying the borrower's age, home equity, and other eligibility requirements.
2. Loan servicing. Once the loan is approved and funded, RMF will typically sell the loan to a third-party investor. However, RMF will continue to service the loan, which involves collecting payments from the borrower, managing the loan account, and providing customer support
3. Third-party investors. The third-party investors who purchase RMF's loans may include banks, private equity firms, or other institutional investors. These investors provide the funds that RMF uses to originate new loans.
4. FHA insurance. For Home Equity Conversion Mortgages (HECMs), which are government-insured loans, the Federal Housing Administration (FHA) provides insurance to the lender. This insurance protects the lender from losses if the loan balance eventually exceeds the value of the home.

Overall, RMF's funding model allows it to provide access to home equity for eligible borrowers while also managing the risks associated with lending. By partnering with third-party investors and working within the FHA's guidelines, RMF is able to provide a reliable source of funding for its loans.

Additional Services

In addition to offering reverse mortgages and related financial products, Reverse Mortgage Funding provides a range of services to help borrowers navigate the loan process and manage their finances. Here are a few examples:

1. Educational resources. RMF offers a variety of educational resources, including articles, webinars, and personalized guidance from loan specialists. These resources can help borrowers better understand reverse mortgages, evaluate their options, and make informed decisions.
2. Loan servicing. RMF services the loans it originates, which means it handles billing, account management, and customer service for borrowers. This can provide peace of mind to borrowers, who can rest assured that they are working with the same company throughout the life of their loan.
3. Financial assessment. As part of the loan application process, RMF conducts a financial assessment of the borrower to ensure they are able to meet their loan obligations, such as property taxes and homeowner's insurance. This assessment can help borrowers avoid financial difficulties down the road.
4. Refinancing. RMF also offers refinancing options for borrowers who already have a reverse mortgage. Refinancing can help borrowers access additional equity, lower their interest rate, or switch from an adjustable-rate to a fixed-rate loan.
5. Customer service. RMF's customer service team is available to answer questions and provide support to borrowers throughout the loan process. This can be particularly helpful for older borrowers who may have questions or concerns about the loan.

Overall, RMF's additional services can help borrowers better understand and manage their reverse mortgage, and can provide a more comprehensive experience for those seeking to access their home equity.

Terms and conditions

Reverse Mortgage Funding offers a variety of Home Equity Conversion Mortgage (HECM) options: 

• Equity Elite reverse mortgage. It is an exclusive RMF loan option. It is intended for the customers of 55 and older planning to buy a house or condo. The offer helps to create a financial roadmap. The loan amount depends on the home value and can be up to $4 million.
• HECM with an annually adjustable rate. The rate here adjusts once a year but cannot exceed a certain percentage annually.
• HECM with a monthly adjustable rate. The option suggests your interest rate will change each month. You will be able to withdraw funds as a lump sum, monthly advances, line of credit, or a combination of these.
• HECM fixed rate. The rate will be fixed for the loan life, but you will require to make money in one lump sum.

RMF requires you to contribute a down payment towards the mortgage. The amount depends on your home value and the loan amount, as in about 50%-57% of the home’s purchase price.