EquityIQ from Onity now offers a lower minimum age requirement of 55 in specific states, making it an attractive option for older homeowners. This fixed-rate loan allows for maximum proceeds of $4 million, surpassing the limits set by the Federal Housing Administration (FHA) on the Home Equity Conversion Mortgage (HECM) program.
EquityIQ does not include upfront or ongoing mortgage insurance or servicing fees, and borrowers must take a full draw of loan proceeds at closing. Eligible property types for EquityIQ include single-family homes, condominiums, townhomes, multifamily properties with two to four units, and planned unit developments.
Approved counseling from an agency is required by PHH for EquityIQ, and the loan is only available for a borrower’s primary residence, not for second or vacation homes.
Andy Peach, the executive vice president and chief lending officer at Onity Group, expressed excitement about the launch of EquityIQ, stating, “With an estimated $14 trillion in senior home equity, we’re excited to launch EquityIQ to help senior homeowners unlock their home equity to meet personal and financial needs.”
Onity, previously known as Ocwen Financial Corp., has a history in the proprietary reverse mortgage space. The original version of EquityIQ was introduced in 2019 and briefly suspended in 2020 due to market volatility. Despite challenges, the company is determined to reenter the market with a competitive product.
Onity CEO Glen Messina emphasized the potential for growth with the launch of a competitive jumbo reverse mortgage product. The company is reentering the proprietary space alongside competitors like Finance of America, Longbridge Financial, University Bank, Smartfi Home Loans, Nationwide Equities, and Mutual of Omaha Mortgage.
Liberty’s reentry into the proprietary space comes at a time of increased competition, with various players offering innovative reverse mortgage products. Mutual of Omaha Mortgage recently announced the launch of SecureEquity, its own proprietary reverse mortgage product available in California and Florida.