PrimeLending, a multi-channel mortgage lender, announced this week that it is entering the reverse mortgage business — primarily as a reverse mortgage broker.
The Dallas-based lender will offer the Federal Housing Administration (FHA)-backed Home Equity Conversion Mortgage (HECM) product to customers at or over the age of 62 who want to convert portions of their home equity into cash.
“PrimeLending is committed to providing our customers with the best possible financial solutions, and we are thrilled to offer reverse mortgages to our product line,” Steve Thompson, president and CEO of PrimeLending, said in a statement. “This new product will provide homeowners with additional financial flexibility and peace of mind during their golden years.”
Originally founded in 1986, PrimeLending currently has about 3,000 employees and offers a range of purchase loans, including fixed- and adjustable-rate, conventional, jumbo, FHA and Veterans Administration (VA) loans. Its refinance options include U.S. Department of Agriculture (USDA) loans, cash-out refinances and now reverse mortgages.
The company also offers renovation loans, and if a borrower’s home requires repairs to be eligible for a HECM, they may have the option to use loan proceeds to make the necessary repairs.
PrimeLending’s reverse mortgage loans are available in all states except New York, North Carolina and Hawaii, according to product disclosures.
The current reverse mortgage business climate has been challenging, and while March volume saw a spike, it was likely attributed to recent merger and acquisition activity across the business, according to industry analysts.
PrimeLending is a subsidiary of PlainsCapital Company. It originated $12 billion in the 12 months ending in January, according to the mortgage tech platform Modex. It currently has 994 active loan officers, 38 branches and 23 state licenses.
