MELVILLE, N.Y.--(BUSINESS WIRE)--Lender Lead Solutions, a division of Vertical Lend, a comprehensive reverse mortgage services company, announced the introduction of Simple60™, a new reverse mortgage product available to homeowners beginning at age 60. Lender Lead Solutions is the first lender in the reverse mortgage industry to announce a product for seniors who are younger than the current Home Equity Conversion Mortgage (HECM) age requirement of 62 years old. This proprietary product also allows seniors over the age of 62 the opportunity to borrow a smaller amount of money with lower closing costs and reduced fees.
“The growth of the senior market provides a tremendous expansion opportunity for new proprietary products in the reverse mortgage marketplace,” said David Peskin, chief executive officer of Lender Lead Solutions. “Census statistics tell us that the oldest of the baby boomers turned 60 last year, and more than 4.5 million seniors currently fall between the ages of 60 and 62. We feel this is the perfect time to introduce the Simple60 product.”
According to statistics obtained from Senior Lending Network, more than 15% of consumers inquiring for a reverse mortgage are technically not qualified due to age. The Simple60 product benefits homeowners who are eager to access their equity earlier and provides lower closing costs than a traditional HECM reverse mortgage. Simple60 is a non-recourse loan that ensures loan debt will never exceed the value of the home. The tax-free proceeds are based on the homeowner’s age and value of the home.
Steven Stern, of Davidow, Davidow, Siegel & Stern, a leading elder law firm in New York said, "The Simple 60 product is extremely innovative. It shatters the myths that reverse mortgages are a one-size-fits-all approach, and it is attractive to borrowers concerned about high closing costs. As an elder law advisor, it is an available option that I discuss with my clients as a way to maintain their dignity and independence."
Borrowers who own at least 70% of the equity in their home may consider the Simple60 reverse mortgage loan as an option for early retirement or to bridge the gap between a pension and Social Security. Seniors above the age of 62 can benefit from the Simple60 reverse mortgage, because it allows them to borrow a smaller amount of money while benefiting from lower closing costs and fees. As with traditional HECM reverse mortgages, loan proceeds may be received in a lump sum, line of credit or a combination.
“There are many instances when we come across senior couples where one spouse is too young for the HECM required age of 62 and this product services a specific niche,” said Scott Johnson of Sun Valley Financial based in Sun City, AZ. “The addition of the Simple60 gives us the ability to reach out to this market place to help even more seniors get through a difficult situation.”
“As the reverse mortgage industry evolves, Lender Lead Solutions continues to create new products designed for the needs of senior borrowers,” said Peskin. “We’ve compiled extensive research in this marketplace and believe in educating consumers through the Senior Lending Network and our spokesman, actor Robert Wagner. We are pleased that our broker partners now can offer these products to an expanded market, giving them the opportunity to increase their profitability.”
“In today’s market, many seniors are seeking ways to tap into their resources at an earlier age,” said Peter Bell, president of the National Association of Reverse Mortgage Lenders Association (NRMLA). “The introduction of innovative products responsive to consumer needs is vital in supporting the financial demands of seniors.”
About Lender Lead Solutions
Lender Lead Solutions is a division of Vertical Lend and the premier reverse mortgage services company in the United States, offering originators complete lead-to-closed loan services through comprehensive marketing, lending, education and technology solutions. LLS is dedicated to building the reverse mortgage industry by fostering deep partnerships with originators and by providing outstanding consumer education. Through LLS’ national consumer education campaign, Senior Lending Network, LLS educates millions of Americans about the important benefits of reverse mortgages and then refers interested consumers to qualified and experienced originators, who have access to LLS’ wholesale reverse mortgage products, technology and education services. For more information call 1-888-775-3631 or visit the company’s Web site at www.lenderleadsolutions.com.