With 19 years in the mortgage business, and eight in the reverse mortgage market, Nationwide Equities is one of the longest-running lenders still around. In early 2018, the company renamed its reverse mortgage division Reverse Loans USA, just to remind potential borrowers exactly what they're offering, though it was already the eighth-largest reverse mortgage originator by volume in 2017.
Reverse Loans (or Nationwide Equities) operates in all but 10 states (Idaho, Iowa, Massachusetts, Minnesota, Mississippi, North Dakota, South Dakota, Utah, Wisconsin, and Wyoming). It just joined the National Reverse Mortgage Lenders Association in 2017.
The new Reverse Loans USA site is a no-frills place to learn the basics about home equity conversion mortgages (HECM). It is one of the few sites to explicitly lay out the fact that potential borrowers will need to undergo a financial assessment to ensure they can pay homeowners insurance, property taxes, and regular maintenance. It again reiterates that borrowers are responsible for such expenses after they've taken out an HECM — and that's important because failure to meet those obligations has been the cause of many HECM foreclosures. The resources section of the site also gives a nod to the family members who might be helping to make this decision and could be responsible for paying back the loan when it comes due.
Under the name Nationwide Equities, the company has an A rating from the Better Business Bureau (with one complaint filed and unresolved). It has very few complaints listed in the Consumer Financial Protection Review Bureau database. Some said it had been aggressively pushing homeowners with reverse mortgages to refinance their loans, something that is not recommended for most borrowers, due to the high closing costs.
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.
Nationwide Equities also provides forward mortgages and refinancing.