Does Bank of America Do Reverse Mortgages?

When people think of getting for a loan, they often start with the big banks.  That thinking applies to reverse mortgages as well.  By 2009 and 2010, Wells Fargo, Bank of America, and MetLife Bank were the top three reverse mortgage lenders.1 Unlike Wells Fargo, Bank of America was not a big player in the market until 2007 when the company purchased Seattle Mortgage’s reverse mortgage division for $220 million, Reverse Mortgage of America.2 In 2008, Bank of America acquired Countrywide Financial Corporation which included its reverse mortgage division.3  Not long after, Bank of America
became the second largest reverse mortgage lender behind Wells Fargo.2

2010 Top 10 Lenders1

1Wells Fargo16,213
2Bank of America7,410
3MetLife Bank3,879
4One Reverse Mortgage, LLC3,241
5Urban Financial Group1,616
7Genworth Financial Home Equity Access, Inc.1,247
81st AA Reverse Mortgage, Inc.1,172
9Financial Freedom Acquisition, LLC1,105
10Security One Lending763

By 2010 the mortgage crisis of 2008 was impacting the reverse mortgage industry. In 2011 both Bank of America and Wells Fargo exited the reverse mortgage sector.4 At that time, both banks accounted for 43 percent of the business according to Reverse Mortgage Insight.4 MetLife Bank followed suit not long after in 2012.5 Bank of America cited declining home values as the reason for leaving the industry.4 With lower home values, fewer people were eligible for loans. Bank of America decided to re-assign half of its reverse mortgage staff to its loan modification division.4

While the exit of the three big banks was a surprise to the industry, reverse mortgage lenders continued to meet the demands of the industry. Different lenders took the place of the big banks. Since that time, non-banking reverse mortgage lenders have become the industry leaders.

2018 Top 10 Lenders6

Rank LenderLoans
1American Advisors Group10,876
2Finance of America Reverse LLC3,932
3Reverse Mortgage Funding LLC2,988
4One Reverse Mortgage, LLC 2,799
5Liberty Home Equity Solutions, Inc. 2,544
6Synergy One Lending, Inc.
7Live Well Financial, Inc.1,623
8Fairway Independent Mortgage Corporation945
9HighTech Lending, Inc.902
10Open Mortgage, LLC822

More than eight years after Bank of America exited the reverse mortgage industry, people still ask if they do reverse mortgages. It’s understandable considering Bank of America is the second largest bank in the U.S. based on assets.7 While Bank of America is no longer a reverse mortgage lender, there are many other established lenders to consider. If you’re interested in speaking with a direct lender call 1 (800) 976-6211 or try our reverse mortgage calculator above to see how much you may qualify for.

1Reverse Mortgage Alert. The Top HECM Lenders of 2019.

2Reverse Mortgage Daily. Bank of America to Exit Reverse Mortgage Business (Update). February 4, 2011

3HousingWire. Its Official: BofA to Shift Resources to Core Operations. February 4, 2011

4The New York Times. 2 Big Banks Exit Reverse Mortgage Business. June 17, 2011

5MetLife. MetLife Exits Reverse Mortgage Business. April 26, 2012

6Reverse Market Insight, Inc. HECM Lenders (FHA Approved Only) Industry Overview HECMs Endorsed through December 2018. January 2019

7Bankrate. America’s 15 largest banks. February 20, 2019