Wells Fargo Mortgage Backs Out Of Reverse Mortgages, MetLife To Stay In?

Services for Real Estate Pros with Frederick Web Promotions

Breaking news in the reverse mortgage industry:

Wells Fargo announced at 3:00PM yesterday that it is pulling out of the Reverse Mortgage business altogether. Leaving MetLife as the only major player in this lucrative market serving seniors over 62.

Reverse Mortgages are a safe place for real estate investors to invest making them a favorite financial instrument for Financial Consultants. Banks like to authorize the loans because the FHA is backing them, then resell the loans to investmetn trusts.

MetLife Home Mortgage is the only major player left in this field.


To find out about this home loan financing option for reverse mortgages in Maryland and Washington DC contact John M Bodecker Reverse Mortgages Montgomery County Md

From the WSJ:

HUD declined to comment Thursday. The National Reverse Mortgage Lenders Association, or NRMLA, said in a statement that demand remains strong for the loans, and though Wells Fargo would be missed, the loans are still available. The organization also said has been working with HUD to develop procedures to let lenders assess the loans, and that "it is anticipated that the Department will be issuing a rule change in the future."

Fred Arnold, a mortgage broker with American Family Funding in Stevenson Ranch, Calif., lamented the move as yet another restriction in credit in the housing market, which has yet to recover from the worst bust since the 1930s.

"To get out of that market is surprising, and disappointing for consumers," especially baby boomers who are entering retirement years, he said. "Because of the reach of big banks, the average senior citizen isn't going to have access."

The reverse mortgages made up about 1.2% of Wells Fargo's total mortgage volume. Codel said the move would affect about 1,000 employees, though the bank would try to move them to other areas. The company will continue to service existing loans, but will not create any new ones starting the end of the month.

Comments (4)

Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Perhaps it is because there is a large population of seniors living in condo communities and even a larger number of these condo communities not renewing their FHA approvals..This is very unfortunate news for senior who may need this type of financing to enjoy the golden years of their lives.Hopefully Met Life will stay in the game.


Jun 17, 2011 06:04 AM
Doug Bullwinkel
Envoy Mortgage,NMLS ID 6666 - Sacramento, CA
Mortgage Loan Originator NMLS #281609

Lot's of changes in the lending world, almost every day now.  Just another example of lenders re-evaluating their markets and profit margins. 

Jun 17, 2011 06:50 AM
David Bruce, Jr.
Frederick Web Promotions - Frederick, MD
Local SEO Apex Predator

Thanks for taking the time to leave a comment on my blog post Hanna, from what I've been told, and I'm not at liberty to disclose the full range of what I know: Some seniors were getting the loan, paying off thier mortgages, but failed to plan to have enough income to pay their property taxes.

Leaving the FHA on the hook or leaving someone on the hook...


Will post more as I'm allowed to, as soon as I hear it

Jun 17, 2011 07:31 AM
John Saari
Worcester, MA
"The Mortgage Buddy"

Metlife has a great reverse mortgage process and Wells Fargo was not compensating it's loan officers enough to make the product effective for their business.

Jun 17, 2011 10:00 AM