google3Do a quick Google search for reverse mortgage lenders or HECM lenders and you will generate a multitude of sources for “preferred” lenders.  Just what is a “preferred” lender, anyway?  Don’t be fooled!

In all but a few of these cases you will generate a list of lenders (1.) who have paid to be listed on a particular web site or (2.) an incomplete, out dated and inaccurate compilation.  In more than several cases, your name, address and phone number will likely be sold to a lender as a “lead”.

HUD Reverse Mortgage Lenders

HUD.gov may be the only semi-reliable place to go for a full list of HECM lenders in your area.   But even HUD’s lender list is woefully out of date.  In some cases, HUD even reports listings for organizations that have been banned from reverse mortgage lending after having been shut down by state regulators.  But this list may be the best we have for now.

HECM Lenders

HUD’s list is not too user friendly.  When searching the HUD list, be certain to check the “HECM” box. This limits selection results to lenders who have completed at least one HECM loan in the last 12 months.  You don’t even want to talk to a lender who can’t meet this requirement.

Beware the mileage “radius” box.  Enter the maximum 100 miles to see all lenders within your state.  Just because a lender has a location within 1 mile of your home bears absolutely no relationship to the level of expertise or service you might expect.  No matter how far away the lender’s office, you should expect the lender to first come to your home for a face-to-face or family meeting to answer your questions.  The physical location of an office is not really relevant.  The willingness of the loan officer is critical.  If he/she can’t get to your home in a reasonable time, move on to somebody else.

Reverse Mortgage Lender List Problems

Unfortunately, the HUD List will only show you lenders physically located in your state. This is a huge shortcoming with the HUD list. Within 100 miles of your home might be several other states with HECM lenders licensed to do business in your home state. If you plug in Manchester, NH, for example, you generate a list of 26 NH lenders.  But there are over 100 more lenders in nearby Massachusetts that you will never see unless you also search in Massachusetts.  A large number of these Massachusetts lenders are licensed in New Hampshire and, in fact, do a substantial volume of their business in NH.  Add Maine to the mix and your options further expand.  Do a thorough search and don’t short-change yourself.  The “best” choice for you might be just over the border.

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Author – Robert H. Irving, CSA®
Senior Reverse Mortgage Consultant