Intuit Inc. (NASDAQ: INTU) is the maker of the popular QuickBooks line of financial software products and TurboTax products. The company purchased Rock Financial Corp. in December 1999 and renamed the company Quicken Loans Inc. Co-founder Gary Gilbert repurchased Quicken Loans from Intuit in 2002 for $64 million. Since then, the company has grown into the largest online mortgage lender in the United States and the second-largest brick-and-mortar mortgage lender in the United States, with over 13,000 employees. Quicken Loans is the largest online mortgage lender. During the real estate and financial bubble bear market, the company purchased One Reverse Mortgage and entered into the reverse mortgage industry.

Who They Are

As the name states, One Reverse Mortgage specializes in reverse mortgage products. The company was founded in San Diego, California in 2001. Reverse mortgages are also referred to as home equity conversions mortgages (HECM), which require the borrower to be at least 62 years old and own a home with enough equity. While these are non-recourse loans, interest continues to accrue on the balance of the loan even when payments are not made. The borrower is responsible for property taxes, property maintenance and homeowners insurance. The company is licensed in all 50 states and operates in 47 states.

Mortgage Products Offered

One Reverse Mortgage has three loan option products for qualified individuals seeking HECM. These mortgages are insured by the Federal Housing Association (FHA). The first loan product option is the line of credit, which the individual can tap to receive proceeds monthly or in a lump sum. The amount of available funds can increase over time and even exceed the value of the home. Individuals can opt not to take any proceeds and simply keep the line of credit available for security.

The second product is the fixed-rate loan. This loan pays proceeds in a lump sum upon closing with a locked-in fixed interest rate lasting for the life of the loan. This option is often used to pay off medical bills, property liens, and mortgage balances or home repairs. The funds can also be used for everyday living expenses to alleviate the need to draw from other retirement sources.

The third product is the purchase loan. The borrower intends to use the proceeds to purchase a home he will be living in. This loan tends to require a larger down payment, the actual size of which is determined by the age of the borrower. Monthly payments are not required as long as the borrower resides in the home as a homeowner, since property taxes, homeowners insurance and maintenance is required.

Mortgage Rates

The United States Department of Housing and Urban Developing (HUD) publishes statistics on every HECM processed. The average fixed and adjustable rates were 4.92% fixed and 3.40% adjustable, as of Dec. 1, 2015. Since the FHA backs the loan, interest costs are generally lower. Adjustable loans can adjust on a monthly basis. Typically, an adjustable HECM comprises an index and margin. The margin is set upon loan origination and stays fixed, and the index fluctuates based on market conditions. There are two commonly used indexes: The Constant Maturity Treasury Index for a one-year or one-month duration, or the London Interbank Offered Rate (LIBOR).

What Consumers Are Saying

One Reverse Mortgage has an A+ rating from the Better Business Bureau. The FHA has strict guidelines on HECM products, which also receive oversight from HUD. The company says it has a 98% customer satisfaction rate. The parent company, Quicken Loans, displays a strong reputation and favorable customer reviews.

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