What's the Difference between a Wholesale Reverse Mortgage and a "Regular" Reverse Mortgage?
(Ft. Worth, TX)
What's a wholesale reverse mortgage? I understand a little bit about reverse mortgages, but have to be honest and say I've never heard this term before.
When one of my elderly relatives was wondering whether to get a reverse mortgage on his home, I got on the Internet and tried to find some information. I was surprised to find that there were a variety of reverse mortgage options out there.
At its most basic definition, a wholesale reverse mortgage is otherwise known as a reverse mortgage, though the ‘wholesale’ in the term is relatively new in the industry. What does it mean?
In a nutshell, a wholesale reverse mortgage lender is just another name associated with a wholesale lender who provides a variety of wholesale loan programs within the real estate industry.
In essence, a wholesale mortgage lender defines a lender that has the funds to lend and who uses mortgage brokers to secure a variety of loans for them.
In essence, they work with independent mortgage brokers as well as loan officers, which can increase the chances of qualifying for and setting terms for a reverse mortgage. It's rather confusing, and I have to admit that I don't totally understand the process.
If I don't understand the process, I caution against it, although at the same time encourage deeper research. I told my elderly relative to go to her local bank and get specific and detailed information before she signed anything.