The $3 billion Teachers Federal Credit Union has partnered with MEMBERS Trust Co. to offer a reverse mortgage program to its members.
The Farmingville, N.Y.-based credit union will offer the Federal Housing Administration's Home Equity Conversion Mortgage and a proprietary reverse mortgage developed by the Tampa, Fla.-based trust company. Teachers FCU's new program will include mortgage origination module, training, underwriting, documentation, servicing, and program development for the propriety reverse mortgage.
A feasibility study completed by Teachers FCU indicated that improvements could be made in the presentation and marketing of reverse mortgages to senior consumers, according to Nancy Orlando, senior vice president of credit at the credit union. Although TFCU sees the reverse mortgage product as a potential resource for seniors to supplement their retirement income and enhance their quality of life, financial education about the product is imperative, Orlando said.