National Reverse Mortgage Lenders Association

The National Reverse Mortgage Lenders Association was established in 1997 with the specific mandate of providing educational products to the public about the industry, being the primary policy advocate and enforcing and regulating the policies to its members. In short, NRMLA was established to enhance the professionalism of reverse mortgage lenders and to instill public confidence in the industry.

THE NRMLA maintains a list of reverse mortgage lenders who follow its Best Practices and Code of Conduct.

HUD Reverse Mortgage Lenders

A HUD reverse mortgage lender is a company or broker that offers federally-insured reverse mortgages. Usually referred to as Home Equity Conversion Mortgages (HECM), they are insured by the U.S. Department of Housing and Urban Development (HUD). Most reverse mortgage brokers will offer a HUD reverse mortgage program. The advantage of a HUD reverse mortgage is that the lender has to follow strict guidelines laid down by the Federal Housing Administration (FHA). Follow the link for more information on a HUD reverse mortgage. www.hud.org can provide you with a list of HUD approved reverse mortgage lenders.

FHA Reverse Mortgage Lenders

A FHA reverse mortgage (Federal Housing Association) is administered by the U.S. Department of Housing and Urban Development (HUD). Even if your present home is not FHA-insured you can still apply for a FHA reverse mortgage. A Home Equity Conversion Mortgage (HECM) is a reverse mortgage that is insured by the Federal Housing Administration (FHA).

Fannie Mae Reverse Mortgage Lenders

All approved Fannie Mae reverse mortgage lenders must also provide HECM reverse mortgages. The broker will be able to advise you on the difference between a Fannie Mae and HECM program. The Fannie Mae program is called the Home Keeper Mortgage. Before taking out the loan the borrower must agree to attend a consumer education session conducted by a nonprofit or public agency engaged in reverse mortgage counseling or a Fannie Mae counselor. You can get further information from Fannie Mae’s Office of Public information by calling 1-800-7FANNIE (1-800-732-6643) and ask for a list of lenders approved to offer the Home Keeper Mortgage in your area. All lenders that offer the Home Keeper Mortgage must also offer the HUD HECM product as well.

Jumbo Reverse Mortgage Lenders

These are proprietary programs set up and administered by private companies and banks. They are referred to as jumbo reverse mortgages becuase, in theory, there is no limit on the amount that can be borrowed; the main determining factors are age, interest rate and value of your home. Unlike, HECM and Home Keeper programs, there is no maximum amount that can be borrowed.

The up front and closing costs on this type of mortgage can be high. Therefore, if your home falls into the HECM or Home keeper price bracket, you're better off using either of these over a proprietary one. However, if your home has a high equity value and you want to borrow more than the maximum allowable with either a HECM or Home Keeper, then a jumbo reverse mortgage is your best option.

here is some more information on a jumbo reverse mortgage and some of the biggest lenders.

When dealing with a reverse mortgage lender it's important that you feel comfortable with the service that's being offered. Those that are members of the National Reverse Mortgage Lenders Association will follow its code of best practice. Therefore, you are best advised to deal with reverse mortgage brokers who are members of the NRMLA.

Finally, some reverse mortgage lenders may try to 'up sell' you a product that may not be in your best interest. If in doubt, or if you are unsure about what is being offered, refer the product to an independent financial advisor.

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National Reverse Mortgage Lenders Association