If you’re a senior, you might be wondering who the top reverse mortgage lenders in the nation are.
Unlike the traditional home loan market, the reverse mortgage industry is dominated by a small handful of companies.
Typically, these lenders specialize in reverse mortgage lending, as opposed to simply offering the loans alongside other options.
As a quick refresher, a reverse mortgage loan allows homeowners 62 and older (55 in some cases) to access cash in their property without monthly payments.
In 2021, reverse lenders originated 59,000 loans, a 36% increase from the 43,000 the year prior. Read on to see who made the top-10 list last year.
Top Reverse Mortgage Lenders
| Ranking | Company Name | 2021 Loan Count |
| 1. | AAG | 18,407 (31.3% share) |
| 2. | FOA Reverse | 10,575 (18% share) |
| 3. | Reverse Mortgage Funding | 6,177 (10.5% share) |
| 4. | PHH Mortgage | 4,319 (7.3% share) |
| 5. | Mutual of Omaha | 4,101 (7% share) |
| 6. | Longbridge Financial | 3,636 (6.2% share) |
| 7. | Cornerstone First | 3,296 (5.6% share) |
| 8. | Open Mortgage | 2,444 (4.2% share) |
| 9. | HighTechLending | 1,144 (1.9% share) |
| 10. | Nationwide Equities | 705 (1.2% share) |
Last year, the top reverse mortgage lender in the country was American Advisors Group, or AAG for short.
The company originated more than 18,000 reverse mortgages in 2021, per HMDA data from the Consumer Financial Protection Bureau (CFPB).
While that might not sound like a lot of loans, it represented a staggering 31.3% market share.
So one company grabbed nearly a third of the entire reverse mortgage market. And yes, actor Tom Selleck of Magnum P.I. fame has been their spokesperson for a while now.
For perspective, the nation’s #1 mortgage lender (for forward mortgages), Rocket Mortgage, held an 8.8% market share in 2021.
AAG was also number one in 2020 with a slightly higher 35% market share.
In second place was Finance of America Reverse, the reverse mortgage division of FOA.
The company funded more than 10,500 reverse mortgages during the year, giving them an also impressive 18% market share. They ranked second in 2020 also with a 20.2% share.
Coming in third was Reverse Mortgage Funding LLC, which originated more than 6,000 loans for a 10.5% market share. They were third a year earlier as well with a very similar share.
In fourth was PHH Mortgage, which also offers forward mortgages to customers. The company managed to originate more than 4,300 reverse loans for a 7.3% market share.
Rounding out the top five was Mutual of Omaha Mortgage with about 4,100 loans funded for a 7% share of the market.
Collectively, the top five reverse mortgage lenders held about 75% of the overall market.
In sixth was Longbridge Financial with 3,600 loans funded and a 6.2% market share.
Seventh place went to Cornerstone First Financial with nearly 3,300 reverse loans funded for a 5.6% market share.
Behind them was Open Mortgage with nearly 2,500 reverse mortgages originated for a 4.2% share of the market.
HighTechLending Inc. (dba American Senior) took ninth with about 1,150 loans funded and a 1.9% market share, followed by Nationwide Equities Corp. with 705 loans and a 1.2% share.
Altogether, the top 10 reverse mortgage lenders held about a 93% share of the overall market.
Who Are the Top Rated Reverse Mortgage Companies?
We know who the biggest reverse mortgage lenders in the country are, but what about best?
That’s a different story, and one that can be difficult to quantify due to the many ratings websites out there.
However, I did some digging to find a good sample size of reviews for each company listed to see what customers think of them. We’ll also check out their Better Business Bureau (BBB) rating.
Starting with AAG, they have an “excellent” 4.5/5 score on Trustpilot from nearly 5,000 customer reviews. Their BBB rating is currently a ‘B+.’
Finance of America Reverse has a “great” 4/5 score on Trustpilot from about 500 reviews and an ‘A+’ BBB rating.
Reverse Mortgage Funding LLC has an excellent 4.6/5 score on Trustpilot from nearly 600 reviews and an ‘A+’ BBB rating.
PHH Mortgage has a 3.9/5 on Consumer Affairs from about 600 reviews and a ‘B+’ BBB rating. Other review sites didn’t have a large enough sample size.
Mutual of Omaha Reverse has a 3.9/5 score on Trustpilot from over 100 reviews and an ‘A+’ BBB rating.
Longbridge Financial has a 4.8/5 score on Trustpilot from nearly 800 reviews and an ‘A+’ BBB rating.
Cornerstone First Financial has a 4.9 rating from about 250 Google reviews and an ‘A+’ BBB rating.
Open Mortgage has a 4.91/5 on Zillow from about 25 reviews (most I could find) and an ‘A+’ BBB rating.
HighTechLending Inc. (dba American Senior) has a 4.95/5 on Zillow from about 110 reviews and an ‘A+’ BBB rating.
Lastly, Nationwide Equities Corp. has a 4.98/5 on Zillow from roughly 110 reviews and an ‘A’ BBB rating.
Remember to look beyond just the top names and also consider mortgage brokers, local credit unions, and more for in your search for a reverse mortgage.
Source: thetruthaboutmortgage.com