EquityIQ: A New Option for Senior Homeowners to Access Equity
Onity Group has introduced EquityIQ, a proprietary reverse mortgage program that allows seniors to leverage their home equity. This product notably lowers the minimum age requirement to 55 in select states, making it more accessible for elderly homeowners.
Key Features of EquityIQ
EquityIQ stands out as a fixed-rate loan, offering maximum potential proceeds of up to $4 million, significantly higher than the limits set under the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program. Here are some additional features:
- No upfront or ongoing mortgage insurance or servicing fees
- Full loan proceeds are disbursed at closing
- Eligible property types include:
- Single-family homes
- Condominiums
- Townhomes
- Multifamily properties with two to four units
- Planned unit developments
Counseling and Usage Restrictions
To qualify for the EquityIQ program, borrowers must undergo counseling from an agency approved by PHH. Furthermore, the reverse mortgage is only available for the borrower’s primary residence and does not extend to second homes or vacation properties.
Market Context and Competitive Landscape
“With an estimated $14 trillion in senior home equity, we’re excited to launch EquityIQ, which complements our existing HECM product offering, to help senior homeowners unlock their home equity to meet personal and financial needs,” stated Andy Peach, executive vice president and chief lending officer at Onity Group.
Onity has a substantial history in the proprietary reverse mortgage market, initially introducing its Liberty Preferred product in 2007. The company had previously launched EquityIQ in 2019 under the Ocwen Financial Corp. branding. EquityIQ saw a temporary suspension due to market fluctuations caused by the COVID-19 pandemic in 2020, followed by another suspension in 2022 due to bond market volatility.
Recent Developments
Onity has been hinting at its return to the proprietary reverse mortgage sphere, expressing optimism about the introduction of a competitive jumbo reverse mortgage product that could foster growth. CEO Glen Messina remarked in March, “With an 18% HECM market share, we’ve got nice market coverage to push that product through.”
Increased Competition
As Onity and its Liberty brand re-enter this sector, they are joining a more competitive field that includes various key players such as Finance of America, Longbridge Financial, and others. Recently, Mutual of Omaha Mortgage also unveiled its proprietary reverse mortgage product, named SecureEquity, targeting homeowners in California and Florida.
With these developments, the landscape for proprietary reverse mortgages is evolving, presenting new opportunities for seniors seeking to access the equity accumulated in their homes.
