Leading reverse mortgage companies in the U.S. as of 2020, by volume of loans

As of August 2020, Wells Fargo was the all-time leading reverse mortgage company in the United States, with 162,89 loans processed. The Home Equity Conversion Mortgage (HECM) is the name given to the reverse mortgages insured by the U.S. Federal Government.

What is a reverse mortgage?

A reverse mortgage allows homeowners aged 62 or older to receive a loan based on the home equity they have established – typically up to 80 percent of the property’s value. Unlike a traditional mortgage where monthly repayments are made, a reverse mortgage loan is only repaid when the borrower moves from the property or passes away. By this time, the borrower will owe more than what they originally borrowed because fees and interest charges are added to the balance of the loan each month. The number of HECMs in the United States dropped to 31,274 in 2019, the lowest number since 2003.

Big banks quit reverse mortgage business

Financial services firm Wells Fargo continues to be the leading company for reverse mortgage originations in the United States, in spite of stopping the service back in 2011. The company cited an unpredictable housing market and the creditworthiness of borrowers as reasons for no longer accepting reverse mortgage applications. Earlier in 2011, Bank of America – which remains fifth in the all-time rankings – also exited the reverse mortgage business.