Proprietary products are becoming increasingly popular and some leaders in the reverse mortgage industry are very optimistic about the future of such products.
"As more lenders continue to invest in additional offerings inside their respective proprietary product suites, the private reverse mortgage market will continue to become more competitive, requiring additional innovations on the part of individual lenders in order to stand out among their peers," according to Reverse Mortgage Daily.
"I think we’ll see more [products] coming out in 2020. If you look at it, in a lot of cases, the proprietary product lines up with the HECM product really quite well. And so I think, as we see growth in the HECM product, we’re likely going to see more growth in proprietary [compared with what] we’ll see in HECM over the next couple of years," said Mike Kent, president of Liberty Home Equity Solutions.
Meanwhile, other professionals also shared the same outlook. Most are predicting growth in the proprietary space as borrowers need more products that meet their needs.
Beyond growth is diversity. Some professionals told RMD that they expect to see more innovative products hit the market as it continues to become a proper alternative FHA loans that simply may not meet the needs of borrowers.
To learn more about reverse mortgage professional's outlook on proprietary products, click here.