Countrywide set to bully Reverse Mortgage Market
As Bank of America and Wells Fargo are lengthening their strong hold on the Reverse Mortgage Market, Countywide annouces that there is another elephant set to dominate the party. Marketwatch Reports that:
The nation’s aging population, along with the rapid housing-price appreciation from 2000 to 2005, has led to record growth in reverse mortgages, which allow homeowners 62 years old and above to turn home equity into income they don’t have to repay until they move out. The reverse mortgage takes its name from the way cash flows between a lender and a borrower. Rather than sending mortgage payments to a bank, as with a traditional mortgage, the borrower receives money in the form of a lump-sum payment, equal payments over time or a line of credit.
Countrywide’s proprietary SimpleEquity reverse mortgage program offers lower upfront costs for those who opt for higher initial loan-draw amounts. A typical borrower of the loan has a home valued at $500,000. Specifically, the Calabasas, Calif., lender will waive both the origination fee and closing costs for borrowers who choose to withdraw the entire loan at the closing. Read More
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