Seniors seeking alternatives as banks get out of reverse mortgage business

From Daily Finance:

Last week, Wells Fargo (WFC), the biggest name in the nation’s reverse mortgage market, announced that it was getting out of the business, citing concerns that housing prices could continue to erode further. That move followed in the footsteps of No. 2 reverse mortgage player Bank of America (BAC), which exited the business earlier this year. Combined, the two banking behemoths represented 43.6% of the reverse mortgage market, based on a 12-month trailing period ending in April, according to industry researcher Reverse Market Insight. But certified financial planners say it’s not the end of the world for cash-strapped seniors who want to stay in their homes. With financial finesse, in some situations, seniors may find non-bank solutions yield better results. John Lunde, president of Reverse Market Insight, doesn’t except a stampede of other reverse mortgage lenders will quit the business. He also notes that most of the other lenders hold much smaller slices of the market, with the exception of MetLife Bank, an affiliate of insurance behemoth MetLife (MET).
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