Reverse Mortgage Guide

Does your reverse lender own your mortgage?

Loans are either held by lenders in portfolios or sold to mortgage buyers. Mortgage buyers can be found on what is called the “secondary” market. To sell their loans on the secondary market, lenders must originate mortgages that meet certain standards in terms of size, paperwork, etc.

As a borrower you want a loan which can be readily sold on the secondary market because it’s probably, but not always, cheaper than other mortgages and likely has better terms.

The National Reverse Mortgage Lenders Association (NRMLA) reports that there are at least 8 secondary reverse mortgage buyers.

But watch this number in the future. As the number of reverse mortgage grows so will the number of secondary buyers. And more competition, as usual, should translate into lower costs.

This entry was posted on Tuesday, July 3rd, 2007 at 2:04 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.