Mortgage has launched a loan optimizer tool to address changes to reverse mortgage
parameters introduced by the Federal Housing Administration in October.
The program updates modified the calculation of principal limits for reverse mortgages
. As a result, borrowers who obtain the best rates available will receive higher loan amounts, according to All Reverse. Under the new loan parameters, a homeowner who seeks competitive rates will have more cash through their initial line of credit and accrue less interest.
The All Reverse Loan Optimizer’s (ARLO) consumer pricing engine responds to these changes. The tool allows borrowers to receive accurate quotes for a variety of reverse mortgage plans and includes all information needed to find the best mortgage for the borrower’s goals.
The web-based tool also offers the prospective borrower side-by-side comparison of amortization data as well as interest rates and closing costs. It can also show borrowers which program performs best over time given that there are multiple amortization schedules that are available to them.
"ARLO helps borrowers by empowering them with the ability to make informed decisions with complete, accurate information in a side-by-side comparison of both current and future costs and benefits of different programs and options," All Reverse CEO Michael Branson said.
"I believe this is a win for the consumer, while also supporting the needed solvency of the reverse mortgage program,” All Reverse President Cliff Auerswald said. “When a consumer secures a reverse mortgage loan with favorable rates, the homeowner will retain a greater equity position over the life of the reverse mortgage loan. This provides additional options for borrowers or their estate/heirs, mitigating additional risk to the FHA
As conversions increase substantially, All Reverse said it plans to integrate its online application and credit approval processes with ARLO for its next release.
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