Finance of America is expanding the availability of its HomeSafe Second reverse mortgage into four additional markets, citing growing demand from both homeowners and loan officers for ways to access home equity without replacing historically low-rate first mortgages.
The lender announced that HomeSafe Second is now available in Louisiana, Missouri, Rhode Island, and Washington, D.C., bringing the product's footprint to 18 states and the District of Columbia.
For LOs, the expansion highlights a growing opportunity to serve older homeowners who are equity rich but reluctant to refinance. Rather than replacing a low-rate first mortgage, second-lien reverse mortgages allow eligible borrowers to tap a portion of their home equity while keeping their existing financing in place.
"We continue to hear from homeowners and loan officers alike that there is unmet demand for HomeSafe Second," Kristen Sieffert, president of Finance of America, said in announcing the expansion. "Many homeowners have significant equity but limited ways to access it without adding a monthly payment or giving up a low mortgage rate."
HomeSafe Second remains the only second-lien reverse mortgage currently available in the market, according to Finance of America. Introduced in 2023, the product is designed for homeowners age 55 and older who want to access a portion of their home equity without refinancing their first mortgage. Borrowers are not required to make monthly mortgage payments on the reverse mortgage, provided they continue to meet loan obligations, including maintaining the home, paying property taxes and insurance, and occupying the property as their primary residence.
The latest expansion builds on Finance of America's broader push into home equity lending. Earlier, the company expanded its reverse mortgage platform through the acquisition of a $5.2 billion reverse mortgage servicing portfolio and continued investing in proprietary home equity products, signaling a long-term strategy centered on helping older homeowners unlock housing wealth without selling their homes.
With millions of homeowners still carrying mortgages originated during the low-rate environment of 2020 and 2021, many have little incentive to refinance despite accumulating substantial equity through years of home price appreciation. As a result, products that allow borrowers to access that equity without replacing an existing mortgage have become an increasingly important segment of the market.
Finance of America said the newly added markets reflect different factors driving demand. In Rhode Island and Washington, D.C., rising home values have increased homeowners' equity while higher insurance costs, property taxes and other living expenses have strained household budgets. In Missouri, the company pointed to retirees living on fixed incomes who may need greater financial flexibility without taking on new monthly mortgage obligations.
The lender said HomeSafe Second is designed for homeowners looking to age in place, supplement retirement income, manage healthcare expenses or help family members while preserving favorable financing already attached to their homes.
Finance of America also highlighted continued investments in technology to support the customer experience. The company said its proprietary AI-powered platform, Joy, integrates borrower data, workflows and internal systems to streamline the home equity lending process and reduce manual steps for borrowers.
For mortgage professionals, the announcement signals that reverse mortgages are continuing to evolve beyond their traditional role in retirement planning. As home equity becomes one of many homeowners' largest financial assets, products such as second-lien reverse mortgages give originators another way to help clients address cash-flow needs without sacrificing historically low first-mortgage rates.
That combination of strong borrower equity, limited refinance incentive, and growing demand for liquidity is creating new opportunities for LOs willing to broaden conversations beyond conventional purchase and refinance lending.
Related: Finance of America Expands Reverse Mortgage Portfolio With $5.2B MSR Acquisition
