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Does Wells Fargo Offer Reverse Mortgages? (2023 Update)

Does Wells Fargo Offer Reverse Mortgages?
Does Wells Fargo Offer Reverse Mortgages?

Reverse mortgages were a service provided by a few of the largest banks in the country many years ago. Wells Fargo was one of the biggest lenders in the Home Equity Conversion Mortgage (HECM) sector in the United States among them. That is no longer the case today.

One of the biggest reverse mortgage lenders in the nation at one point was Wells Fargo. Shortly afterward, the corporation made the decision to shut down its reverse mortgage operations, which resulted in an unforeseen sequence of events:

No longer offers services for reverse mortgage loans

The lender activity’s summary report on Wells Fargo HeCM Endorsement may be found at https://apps.hud.gov/pub/chums/f17fvc/hecm.cfm.

Why Wells Fargo stopped providing reverse mortgages ?

Executives from Wells Fargo told industry publication Reverse Mortgage Daily that it was challenging to assess whether borrowers could fulfill their loan obligations due to the combination of HECM program limitations and unpredictable home prices when the company announced it was leaving the reverse mortgage business.

These responsibilities still apply to reverse mortgages today and include continuing homeowners insurance and property tax payments in addition to maintaining the home by Federal Housing Administration (FHA) guidelines. The borrower is required to uphold these responsibilities as part of any reverse mortgage loan covered by FHA to keep the loan current.

Consequently, borrowers with FHA-insured reverse mortgages are certain that they will never owe more on their loan than the value of their house at the time of sale and that they will continue to receive loan payments as specified in the loan contract.

The following market variables led Wells Fargo to abandon reverse mortgages:

  • A great deal of uncertainty about home prices resulted from the 2008 housing meltdown.
  • Wells Fargo was unable to forecast changes in property values or borrowers’ capacity to repay their debts. At the time, banks prioritized their main business routes over their secondary ventures.

Will Reverse Mortgages Be Offered Again by Wells Fargo?

Whether Wells Fargo will continue to offer reverse mortgages is a matter of speculation, but there is no reason why the corporation cannot reenter the HECM loan market.

Despite the absence of large banks from the reverse mortgage market at the moment, a large number of small banks are actively lending and have recognized the potential growth opportunity presented by the baby boomer generation and the influx of Americans who are unprepared for retirement.

In the past, Wells Fargo was among the top producers of reverse mortgages in the country.
The bank entered the reverse mortgage market after several other banks.
Whether large banks will reenter the market is still up in the air.

In 2023, where can I obtain a reverse mortgage?

Banks and non-bank lenders alike, as well as brokers that assist potential borrowers in navigating the various loan alternatives and interest rates available, are among the numerous active lenders in the reverse mortgage market today. To start, it’s a good idea to collect a few details, such as your house address and age (or that of your spouse, if you’re married) so that a reverse mortgage calculator can approximate how much you might be able to borrow.

Top 20 Reverse Mortgage Lenders

COMPANYRATINGYEARS IN BUSINESSSTARS (0-5)GOOD REVIEW %COMPLAINTSBBB REVIEW
All Reverse Mortgage, Inc. (ARLO)A+194.9/599%0Source
Advisors Mortgage GroupA+241.6/533%6Source
American Advisors Group (AAG)A-194.6/593%88Source
American Pacific MortgageF271.0/520%15Source
Ennkar Inc.A+133.6/573%3Source
Fairway Independent MortgageA+274.9/598%43Source
Finance of America Reverse LLC (FAR)A+201.5/531%15Source
GoodLife Home LoansA+114.4/588%1Source
Guild Mortgage Company (Formerly Cherry Creek LLC)A+631.3/526%59Source
HighTechLending IncNR153.0/560%1Source
Liberty Home Equity Solutions Inc.A+201.0/520%3Source
Longbridge Financial LLCA+113.9/579%17Source
Mid America Mortgage Inc.NR643.0/560%0Source
MoneyhouseA+NANANA0Source
Movement Mortgage, LLCA+164.7/595%109Source
Mutual of Omaha MortgageA+104.8/596%51Source
Open Mortgage LLCA+202.7/554%1Source
Plaza Home Mortgage IncA+221.7/535%5Source
Smartfi Home LoansA+4NANA0Source
South River Mortgage, LLCA+42.3/546%15Source

Top 20 HECM lenders reported by https://www.rminsight.net/wp-content/uploads/2023/10/Lenders_202309.pdf. (Reviews Updated: 11/20/2023)

For assistance in getting started, go to the All Reverse Loan Optimizer, or ARLO.

ARLO suggests the following useful resources:

Customer Service Number for Wells Fargo Reverse Mortgage: (877) 937-9357

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