EquityIQ: A New Option for Senior Homeowners
EquityIQ, a proprietary reverse mortgage product offered by Onity, is making waves in the industry with its unique features. One standout feature is the lower minimum age requirement of 55 in certain states, allowing more seniors to access this financial tool. With a fixed-rate loan offering up to $4 million in proceeds, EquityIQ surpasses the limits of the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program.
Unlike traditional reverse mortgages, EquityIQ does not require upfront or ongoing mortgage insurance or servicing fees. Borrowers must take a full draw of loan proceeds at closing, with eligible property types including single-family homes, condos, townhomes, multifamily properties, and planned unit developments.
Before obtaining an EquityIQ loan, borrowers must undergo counseling from an approved agency and use the funds for their primary residence only. Onity Group’s executive vice president, Andy Peach, expressed enthusiasm for the product, stating, “With an estimated $14 trillion in senior home equity, we’re excited to launch EquityIQ to help senior homeowners unlock their home equity for personal and financial needs.”
While Liberty has a history in the proprietary reverse mortgage space, Onity’s prior branding as Ocwen Financial Corp. introduced the original version of EquityIQ in 2019. Despite temporary suspensions due to market volatility, the product has been reintroduced and withdrawn multiple times.
Looking ahead, Onity CEO Glen Messina sees the relaunch of EquityIQ as an opportunity for growth in the competitive jumbo reverse mortgage market. With increasing competition from companies like Finance of America, Longbridge Financial, University Bank, Smartfi Home Loans, and Nationwide Equities, Onity and Liberty are reentering the market with renewed vigor.
In response to the expanding market, Mutual of Omaha Mortgage recently launched its own proprietary reverse mortgage product, SecureEquity. As the landscape of proprietary reverse mortgages evolves, senior homeowners have more options than ever to tap into their home equity for financial security.