According to HousingWire, Mutual of Omaha Mortgage has been expanding its SecureEquity proprietary reverse mortgage program, which launched about eighteen months ago. The product started in California and Florida but has grown to cover forty-one states plus Washington, D.C. What's particularly noteworthy is that the company recently lowered its minimum home value requirement to three hundred thousand dollars, which opens the door for borrowers who might have been turned away before. The program now serves homes valued anywhere from three hundred thousand to ten million dollars, though the maximum loan amount tops out at four million except in rare cases.
One of the main reasons proprietary reverse mortgages like SecureEquity are gaining traction is something we're all feeling right now: interest rate pressures have been squeezing the proceeds available through traditional HECM loans. As Mark O'Neil, the company's senior vice president of wholesale, explained to HousingWire, rising Treasury yields have made HECM options less attractive for many seniors. SecureEquity fills that gap by offering borrowers younger than the HECM minimum age of sixty-two, down to fifty-five in most states, and by allowing them to pay off various types of consumer debt directly at closing, something HECM doesn't permit.
The SecureEquity product suite includes both adjustable-rate and fixed-rate options with some real advantages. The ARM option includes a one and a half percent line of credit growth rate for the first seven years on any unused funds, and importantly, there's no mortgage insurance requirement like you'd face with HECM. That upfront insurance premium on HECM can be a real sticking point for borrowers. Borrowers do need to withdraw twenty-five percent of their principal limit at closing, and that portion cannot be redrawn, but overall the flexibility appears to be resonating in the market.
Through examples shared with HousingWire, Mutual of Omaha demonstrated how this product is solving real problems for seniors. One couple in their seventies with a three hundred thousand dollar home could qualify with a standard HECM but would've come up short on cash, while SecureEquity gave them breathing room plus a line of credit for future needs. Another widow in her eighties with substantial mortgage debt was able to pay off her lien and set aside funds for taxes and insurance while still having money left over, whereas a comparable HECM would've left her unable to close. A retiree looking to purchase a one point five million dollar home saved over two hundred thousand dollars in required cash at closing by using SecureEquity's fixed-rate option instead of HECM for Purchase.
What I am seeing locally here in the Bay Area is that these kinds of solutions are becoming increasingly important as our homeowners age and market conditions tighten. With property values still strong in the East Bay and greater Bay Area, more seniors are sitting on substantial home equity but facing challenges with rising rates and tight liquidity. The ability to access that equity without jumping through the traditional HECM hoops, especially when they want to address existing debt or access funds before reaching sixty-two, is opening doors that felt closed just a couple of years ago. This shift toward proprietary products reflects the real needs I hear from clients every day who want flexibility and speed.
