Genworth Financial Home Equity Access, Inc. announced it has eliminated the monthly servicing fee for all fixed rate reverse mortgage products for both its wholesale and retail channels.
“By eliminating the monthly servicing fee, our analysis shows that our average client can now gain access to an additional $3,500-$4,500 of their home’s equity,” said Pete Engelken, President of Genworth Equity Access.
“For many of our clients, this additional cash access can make a huge difference in their lives –and we are committed to helping more seniors remain in their homes through this lower cost reverse mortgage.”
Combined with a low, fixed rate of 5.56%, zero servicing fee reverse mortgage is changing the way clients look at reverse mortgages said a statement from Genworth.
As an example, a 65 year old homeowner with a home valued at $235,000, and a current mortgage balance of $125,000 would be $4,998 short of qualifying for a fixed rate reverse mortgage with a $30 monthly service fee. With the zero service fee reverse mortgage loan, however, this same homeowner would not only qualify for the reverse mortgage, but also come away with $252 after paying off their current mortgage.
Genworth is the 12th largest reverse mortgage lender in FY 2010 according to HUD data. The company has endorsed 361 HECMs during FY 2010. To see more data on Genworth, see the company listing at ReverseBase.
