The $746 million San Francisco Federal Credit Union has signed on with a reverse mortgage consultant firm to offer its members the popular retirement option.
The credit union said member demand for the product led it to a deal with California Reverse Mortgage Consultants.
A reverse mortgage allows members to draw on the equity in their home without having to sell it. Unlike a conventional mortgage where monthly payments are paid, a reverse mortgage is a loan that pays the borrower monthly payments. Members who choose to borrow from a reverse mortgage can use the cash payments to supplement their retirement income, or make home improvements, the CU said.
"With CRMC, we are able to offer the senior community increased awareness and education about products that can help make their financial lives easier," said San Francisco FCU CEO Steven Stapp.