New jumbo product gives partners tools to tap growing senior equity
PHH Mortgage, a nonbank mortgage servicer and originator, has launched a new proprietary reverse mortgage offering called EquityIQ, expanding its presence in the private reverse mortgage space.
The product is available through the company’s wholesale network and will be marketed under PHH’s reverse mortgage division, Liberty Reverse Mortgage.
The new offering is aimed at homeowners aged 55 and older (subject to state-specific restrictions) and is positioned as a jumbo reverse mortgage that offers an alternative to the traditional Home Equity Conversion Mortgage (HECM). As a private product, EquityIQ is not FHA-insured and provides higher available loan amounts and more flexible features compared to standard government-backed reverse mortgages.
EquityIQ offers a fixed-rate loan with a maximum loan amount of $4 million. The loan structure requires borrowers to draw the full proceeds at closing. The product also eliminates monthly servicing fees and avoids upfront and ongoing mortgage insurance premiums. It is available only for primary residences, and eligible property types include single-family homes, condominiums, townhomes, two-to-four-unit multi-family residences, and planned unit developments.
Borrowers are still responsible for paying property taxes, homeowners insurance, HOA fees, and property maintenance. Before closing, applicants must complete a counseling session with a PHH-approved housing counseling agency.
The launch comes amid growing interest in tapping home equity among older Americans. A study commissioned by Finance of America Reverse (FAR) showed that in 2023, 32% of eligible homeowners said they would consider using a home equity product, up from 28% in 2022.
PHH executives said the launch is meant to meet the growing demand for reverse mortgage options that provide more accessible liquidity for older homeowners.
“We understand our customers' needs and the many benefits of a reverse mortgage,” PHH chief lending officer Andy Peach said in a Press release. “With an estimated $14 trillion in senior home equity, we’re excited to launch EquityIQ.”
PHH chief growth officer Rich Bradfield said the product would enhance the company’s offerings to wholesale partners and support business growth in the reverse lending channel.
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“We believe EquityIQ can be a valuable option for our wholesale partners and their clients, and we look forward to continuing to expand our product options to meet our customers’ needs,” he said.
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