Welcome to Direct Finance and the Credit Union Reverse Mortgage Program

The increasing popularity of the Home Equity Conversion Mortgage (HECM) – more commonly known as a “Reverse Mortgage” – is one of the most important financial events of the past decade. Here are some facts about Reverse Mortgages:

Homeowners over age 62 are using Reverse Mortgages as a way to tap into the equity they have built in their home, without having to sell their home and without ever making a monthly mortgage payment again.
Reverse Mortgages are insured by the U.S. Government.
Reverse Mortgages were developed with the assistance of the American Association of Retired Persons (AARP)
The homeowner retains actual ownership of the home, and can use the money from a Reverse Mortgage any way they choose: pay off a current mortgage, debt consolidation, home improvements, real estate taxes, lump sum of cash, investments, a life long monthly tax free annuity, or line of credit that can grow each year – the options are endless.
There are no income, asset, or credit score requirements.
A HECM is a non-recourse loan. A borrower can never owe more than the value of their home.

The numbers are telling:

In 1990, only 157 HECMs were filed in the United States
By 2006, that number had grown to 68,414 HECMs.
In 2006, there were 2,534 HECMs filed in Massachusetts.
By 2010, the population of Massachusetts homeowners eligible for a Reverse Mortgage is expected to be over 908,000.

Is this a market you can afford to ignore? Can you risk losing your members to another financial institution that can offer them a Reverse Mortgage?


		The Reverse Mortgage Market The increasing popularity of the Home Equity Conversion Mortgage (HECM) – more commonly known as a “Reverse Mortgage” – is one of the most important financial events of the past decade. Here are some facts about Reverse Mortgages: Homeowners over age 62 are using Reverse Mortgages as a way to tap into the equity they have built in their home, without having to sell their home and without ever making a monthly mortgage payment again. Reverse Mortgages are insured by the U.S. Government. Reverse Mortgages were developed with the assistance of the American Association of Retired Persons (AARP) The homeowner retains actual ownership of the home, and can use the money from a Reverse Mortgage any way they choose: pay off a current mortgage, debt consolidation, home improvements, real estate taxes, lump sum of cash, investments, a life long monthly tax free annuity, or line of credit that can grow each year – the options are endless. There are no income, asset, or credit score requirements. A HECM is a non-recourse loan. A borrower can never owe more than the value of their home. The numbers are telling: In 1990, only 157 HECMs were filed in the United States By 2006, that number had grown to 68,414 HECMs. In 2006, there were 2,534 HECMs filed in Massachusetts. By 2010, the population of Massachusetts homeowners eligible for a Reverse Mortgage is expected to be over 908,000. Is this a market you can afford to ignore? Can you risk losing your members to another financial institution that can offer them a Reverse Mortgage?