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Reverse mortgage option helps homeowners keep it in the family

National Family Mortgage allows family members to ‘crowdfund’ HELOCs for their relatives

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Crowdsourcing is not just for independent films or charity endeavors anymore. An online, peer-to-peer lending company is making headlines for a new reverse mortgage product that allows relatives to crowdfund home equity lines of credit, helping people arrange affordable loans, reducing tax issues, protecting relationships among relatives and keeping wealth within a family. Boston-based lender National Family Mortgage has launched Caregiver Mortgage, a secured home equity line of credit crowdfunded by the relatives of a homeowner. According to the company, the Caregiver Mortgage offers many of the features and benefits that attract borrowers to reverse mortgages, but without the costs and restrictions. A reverse mortgage is a home loan that provides cash payments based on home equity. Homeowners — in most cases, senior citizens and retirees — often defer payment of the loan until they sell the property, move or pass away. In the latter case, the homeowners’ heirs either g...