Pros / Receives loads of praise for its customer service and online presence via social media.
Cons / Doesn’t currently offer proprietary jumbo loans. Online only, so no meeting with a lender in person.
Verdict / A more digital-friendly approach, coupled with the Quicken brand muscle, One Reverse Mortgage is user-friendly and at your fingertips.
San Diego-based One Reverse Mortgage has been in the business since 2001, and was bought by Quicken Loans’ parent company Rock Holdings in 2008. It follows the Quicken business model of giving loans only through online and phone transactions. Even without the opportunity for in-person meetings, the company consistently receives high marks from consumers for its customer service.
In 2017, ORM had the sixth-highest volume of reverse mortgage lenders nationwide. The company serves Washington, D.C, and all states except Rhode Island, West Virginia, and Vermont, and is a member of the National Reverse Mortgage Lenders Association.
Unlike other lenders' sites that ask for personal information right away, OneReverseMortgage.com is a user friendly website that offers potential customers much of the information they need without a lot of digging. The resources section includes clear explanations of what a reverse mortgage is, which products ORM offers, and all the steps it takes to apply for a reverse mortgage. Most comforting is the page that invites potential borrowers to involve other family members in this important decision.
If you want personalized info from the start, you can begin with the reverse mortgage calculator, which gives an estimated amount of money you might receive (based on your age, the value of your home, and the amount you still owe on it). That's when you have the option of entering your name and address to receive more information from ORM. On the same page, the site also explains a lot of the details other providers might gloss over as they try to appeal to customers, such as the fees, mortgage insurance premiums, disbursement limits, and other requirements mandated in all HECM products.
Looking for even more information on reverse mortgages and other retirement issues? ORM also produces a Retiring Wise blog and videos, and has a significant presence on Twitter and Facebook.
You might prefer to meet in person with a reverse mortgage originator, who would be able to give more detailed information and assess whether you really are likely to be able to stay in your home long enough to justify the high closing costs of a reverse mortgage. That's not an option with ORM. But ORM does come with the trusted Quicken brand name. It's got an A+ rating from the Better Business Bureau, and a relatively small number of complaints filed with the Consumer Financial Protection Bureau.
Fixed-rate lump sum disbursement: The interest rate remains the same for the life of the loan (great if it's low when you apply), but you can only receive your loan in one lump sum, which will be determined by your home equity, your age, and the first-year draw limit (60 percent of the loan total).
Adjustable-rate term disbursement: You can receive the amount of your loan in fixed monthly payments for a set number of months, but the interest rate will be variable from year to year or month to month, based on the London Interbank Offer Rate (LIBOR).
Tenured: You can receive a set amount of money from your loan every month for the life of your loan (calculated by assuming you will live to 99), and the rate varies based on the LIBOR.
Line of credit: Instead of receiving your loan payment upfront, you can leave it as a line of credit, and the amount you don't draw down will grow with compound interest each year, based on the LIBOR.
Combination: This adjustable-rate loan can be a combination of all of the above, at the adjustable rate based on LIBOR.
HECM for Purchase: This type of loan allows you to buy a new home directly with a reverse mortgage.
ORM does not offer a proprietary (jumbo) reverse mortgage at this time.