Genworth Financial Launches Zero Servicing Fee Reverse Mortgage

Friday, 19 March 2010 15:21

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Genworth Financial Home Equity Access, Inc. (“Genworth Equity Access”) has taken another step to making reverse mortgage loans more affordable for senior homeowners nationwide. This week, Genworth Equity Access eliminated the monthly servicing fee for all of its fixed rate reverse mortgages. “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%, Genworth Equity Access’ zero servicing fee reverse mortgage is changing the way clients look at reverse mortgages. Michael Fullam, a reverse mortgage broker with Trinity Mutual in Oakland, Ca, stated, “I had a client that had done a lot of research into reverse mortgages. It wasn’t until they found out that Genworth introduced its zero service fee reverse mortgage that they were ready to move forward. They were elated that they could now access enough equity through a reverse mortgage for it to make sense for them. They have already submitted their application and are on their way to being mortgage payment free!”

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! For this hypothetical client, the savings from the zero service fee made all the difference in their ability to benefit from a reverse mortgage.
 
With a record 114,691 FHA-insured reverse mortgages issued in FY 2009, more seniors than ever are finding financial security by accessing their home’s equity in retirement.