With over one-third of homes in America owned by those aged 65 and older,1 it’s no surprise that more attention is being paid to how retirees can responsibly leverage home equity. On a recent episode of the HousingWire Daily podcast, Longbridge CEO Chris Mayer joined host Sarah Wheeler to discuss innovative lending solutions that are built to better serve older homeowners.
The conversation kicked off with an overview of some of the roadblocks older homeowners face in the current lending landscape. Many applicants that are turned down in the forward lending space may be eligible for other home equity solutions—but they’re not being shown options that work for them. As Chris points out, when institutions fail to offer seniors products that work for their financial circumstances, they’re not fulfilling their responsibility to serve their customers.
That’s where innovation in the senior lending space comes into play. By approaching older homeowners’ needs differently, lenders can offer products that address unique circumstances while expanding access to those who need them most.
For example, Longbridge Financial’s first-of-its-kind home equity line of credit, HELOC For Seniors®, offers reduced, interest-only payments for the life of the loan (as long as borrowers continue to meet loan requirements, including property taxes, homeowners insurance, and maintenance). There are multiple benefits to this: a lower payment means that more people will be able to afford this product, expenses are kept more manageable in retirement, and there’s no fear of dramatic payment shocks or set term traps.
Innovation within the reverse mortgage space also helps ensure seniors have a range of flexible options tailored to their unique goals and needs. Platinum Preserve®,2 another offering from Longbridge Financial,allows borrowers to preserve a portion of their home’s equity for what matters most—whether that’s leaving an inheritance, saving for long-term care, or simply setting aside funds for the future.
Beyond lending products, Chris emphasizes the importance of exceptional servicing, acknowledging the need to “care about customers for a lifetime.” In recognition of this, Longbridge prioritizes and invests in servicing to ensure borrowers have resources to turn to if they face any financial difficulties or a change in circumstances.
Ultimately, it is important that there is a real effort within the senior lending industry to adapt to the needs of today’s borrowers. As Chris explains, there is a real need to “change the perception of how people think about the product and industry and help them recognize that really, we’re here to help people have a better retirement.”
Listen to the full episode to hear the rest of the conversation and get Chris’s full insights on the future of home equity solutions for older homeowners.