Last week, Guild Mortgage announced a series of products under the name “Flex Payment Mortgage.” The product includes Home Equity Conversion Mortgage (HECM) reverse mortgage products with financing, jumbo ownership options and HECM for Purchase (H4P) loans.
After getting the robust reverse mortgage part of Cherry Creek Mortgage In early 2023, Guild used its expertise in the industry to secure a position as the top 10 reverse mortgage lender. Recently listed as loan number 7 since Aug. 31, based on data from Reverse Market Insight (RMI).
To get a better idea of what the Flex Payment Mortgage suite will aim to achieve for the company, HousingWireReverse Mortgage Daily (RMD) sat down with Jim Cory, managing director of the Guild’s reverse division.
New look, ‘flexible’ branding
When asked about the main purpose of the line, Cory said it’s all about trying to give a housewares product that twists the proverbial “fresh coat of paint” to grab the attention of more consumers.
“With Flex Payment Mortgage, Guild is looking to give the mortgage product a fresh, new look and branding,” said Cory. “Our idea is to focus on flexibility. We’ve been coming back to the word ‘flexibility’ and the flexibility of the program – whether we’re providing a loan that allows the borrower to stay in their home, giving them a line of credit or other access to home equity.”
Strengthening the H4P business is also a priority as the Guild – and many other industry members – see that product as underutilized compared to traditional HECM loans.
“We really wanted to focus on that,” Cory said of H4P. “It’s basically the same product, but there’s a lot of difference in what they’re offering to the client.”
Aligning all reverse mortgage product options — HECM, H4P and jumbo ownership options — under a unified product will allow the company to offer a full slate of services to prospective clients, Cory said.
‘Typical mortgage option’
The company is set to introduce a reverse mortgage product option in an effort to normalize reverse mortgages across its broader product portfolio, something companies across the mortgage business hope to do in the long run.
“We’re very focused on looking at this as a standard form of mortgage, something that we can introduce to local Guild startups and branches,” he said.
He compared it to special home loan options available to military veterans as he made sure they were aware of US Department of Veterans Affairs (VA) loans are an important part of the customer onboarding strategy. With reverse mortgages, the special feature for borrowers aged 62 and over has the same qualities. And such options may not be limited to rescission of mortgage options.
“We feel that all mortgage customers who come to our branches are 62 or older, we should be giving them another option,” he said. “We prefer to call it the ‘Flex Payment Mortgage.’ That is our new brand and we will introduce it that way.
“It’s still a reverse mortgage in most cases, but we may have some ideas about what falls into that ‘flexible payment’ category.”
Expanding the reach of forwarding LOs
As many mortgage players went ahead and signed on last year, adding reverse to their existing product suits has been a key point of interest as they begin to dip their toes back in. The new Guild brand is also designed to make it easier for loan originators to start offering more reverse options, Cory said.
“A lot of this has to do with our traditional lenders,” he said. “That’s our biggest growth area and our biggest focus: how to get them involved. My personal goal is to see every single one of our nearly 3,000 founders apply for a loan at some point. It’s a big goal and a big mountain to climb, but it’s a lot of fun.”
Having the ability to offer a reverse mortgage option to those 62 and older — or 55 and older with certain home equity loan options — only helps add to the pool of options that can capture a particular customer, he said.
“There’s another way here, like if you’re a veteran,” said Cory. “There is another option that you may be eligible for. Let’s see what that will look like.”
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