ABA Selects MetLife for Reverse Mortgage Affinity Program

The American Bankers Association has selected MetLife Bank N.A. as its exclusive provider of reverse mortgage programs to its member banks and thrifts. Under the program, MetLife Home Loans will provide ABA firms with a correspondent or broker channel for FHA-insured reverse mortgages, which are known as Home Equity Conversion Mortgages. "This product is a very good fit for community banks," said Deborah Whiteside, senior vice president at ABA Total Business Solutions. "Community bankers know their customers very well," she said, and they have the time to serve as a "trusted financial adviser" and work with seniors and family members. ABA had a similar affinity relationship with another reverse mortgage lender, Financial Freedom, but the relationship was terminated six months ago, said Ms. Whiteside. MetLife Bank securitized about $2 billion in HECMs through Ginnie Mae last year. MetLife vice president Craig Corn said many banks do not have Federal Housing Administration approval to underwrite and close HECMs. But they can take advantage of the broker channel to provide their customers with a reverse mortgage option. "I think we will see more and more banks who get into this program through the ABA will likely become correspondents so that they have full control over the customer's experience," Mr. Corn said.