Latest news with #HECM
Yahoo
07-05-2025
- Business
- Yahoo
Comvest Credit Partners Agents Senior Credit Facility to Support the Refinancing of Peer Advisors, Parent Company of Celink, by Further Global Capital Management
WEST PALM BEACH, Fla., May 07, 2025--(BUSINESS WIRE)--Comvest Credit Partners, a leading provider of flexible direct financing solutions to middle-market companies, is pleased to announce that it is acting as Administrative Agent and is the sole lender on a senior secured credit facility (the "Financing") for Peer Advisors, parent company of Celink, the nation's leading reverse mortgage subservicer. The Financing supports Celink's continued ownership by private equity sponsor Further Global Capital Management ("Further Global"). Celink provides a comprehensive set of services to reverse mortgage lenders and borrowers. Its services include loan onboarding, data validation, call center, payment processing, lines of credit disbursements, tax and insurance monitoring, occupancy monitoring, investor and regulator reporting, foreclosure and REO management, and record retention. Celink is based in Lansing, Mich., and Tulsa, Okla. "Celink is the leading player in a complex and highly regulated niche industry and provides critical services to lenders and borrowers through its proprietary technology servicing platform," said Jack Wyatt, a Principal at Comvest Credit Partners. "We are pleased to support Celink's veteran management team and complete another transaction with Further Global, a highly experienced financial services-focused private equity sponsor. We look forward to working together to support Celink's continued growth as well as on other opportunities in the sector." "Comvest Credit Partners worked collaboratively to deliver a creative financing structure that provides both capital at scale and addresses Celink's unique needs for growth," said Olivier Sarkozy, Managing Partner of Further Global. "In addition, the Comvest team's deep understanding of the financial services sector was key to their ability to expeditiously get this deal done." About Celink Celink has been the nation's leading subservicer of reverse mortgages since 2005 and is the subservicer of choice for the nation's largest reverse mortgage lenders. Celink is a Ginnie Mae-approved Participation Agent and Subcontract Servicer for the HMBS program, a Morningstar DBRS approved servicer, as well as a Moody's approved servicer of reverse mortgages ("SQ2" rating). Celink utilizes an innovative servicing platform, ReverseServ Elite, which is fully scalable and supports numerous proprietary reverse mortgage products in addition to FHA's HECM program. For more information, visit
Business Wire
07-05-2025
- Business
- Business Wire
Comvest Credit Partners Agents Senior Credit Facility to Support the Refinancing of Peer Advisors, Parent Company of Celink, by Further Global Capital Management
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Comvest Credit Partners, a leading provider of flexible direct financing solutions to middle-market companies, is pleased to announce that it is acting as Administrative Agent and is the sole lender on a senior secured credit facility (the 'Financing') for Peer Advisors, parent company of Celink, the nation's leading reverse mortgage subservicer. The Financing supports Celink's continued ownership by private equity sponsor Further Global Capital Management ('Further Global'). 'We are pleased to support Celink's veteran management team and complete another transaction with Further Global,' said Jack Wyatt, a Principal at Comvest Credit Partners. Celink provides a comprehensive set of services to reverse mortgage lenders and borrowers. Its services include loan onboarding, data validation, call center, payment processing, lines of credit disbursements, tax and insurance monitoring, occupancy monitoring, investor and regulator reporting, foreclosure and REO management, and record retention. Celink is based in Lansing, Mich., and Tulsa, Okla. 'Celink is the leading player in a complex and highly regulated niche industry and provides critical services to lenders and borrowers through its proprietary technology servicing platform,' said Jack Wyatt, a Principal at Comvest Credit Partners. 'We are pleased to support Celink's veteran management team and complete another transaction with Further Global, a highly experienced financial services-focused private equity sponsor. We look forward to working together to support Celink's continued growth as well as on other opportunities in the sector.' 'Comvest Credit Partners worked collaboratively to deliver a creative financing structure that provides both capital at scale and addresses Celink's unique needs for growth,' said Olivier Sarkozy, Managing Partner of Further Global. 'In addition, the Comvest team's deep understanding of the financial services sector was key to their ability to expeditiously get this deal done.' About Celink Celink has been the nation's leading subservicer of reverse mortgages since 2005 and is the subservicer of choice for the nation's largest reverse mortgage lenders. Celink is a Ginnie Mae-approved Participation Agent and Subcontract Servicer for the HMBS program, a Morningstar DBRS approved servicer, as well as a Moody's approved servicer of reverse mortgages ("SQ2" rating). Celink utilizes an innovative servicing platform, ReverseServ Elite, which is fully scalable and supports numerous proprietary reverse mortgage products in addition to FHA's HECM program. For more information, visit About Further Global Capital Management Further Global Capital Management is an employee-owned private equity firm that makes investments in businesses within the business services and financial services industries. Further Global seeks to be a true partner with the management teams with whom it invests with an objective to be the "Capital Partner of Choice" to the industry. Further Global seeks out situations in which its extensive network, operational expertise and capital can drive significant value. Further Global has raised over $3 billion of cumulative committed and invested capital. For more information, visit About Comvest Credit Partners Comvest Credit Partners, the direct lending platform of Comvest Partners, focuses on providing flexible financing solutions to middle-market companies. Comvest Credit Partners provides senior secured, unitranche, and second lien capital to sponsored and non-sponsored companies in support of growth, acquisitions, buyouts, refinancings, and recapitalizations, with credit facilities up to $300 million-plus. For more information, please visit About Comvest Partners Comvest Partners ('Comvest') is a private investment firm that has provided equity and debt capital to well-positioned middle-market companies throughout North America since 2000. Through its private equity, direct lending and opportunistic credit investment platforms, Comvest offers tailored investment solutions across the capital structure along with deep industry expertise, operating resources, a collaborative approach, and significant transaction experience as an active investor. In 2025, Comvest Partners proudly celebrates 25 years of investment management leadership, and today manages $15.7 billion in assets, with over $16.8 billion invested since inception. Comvest Partners is based in West Palm Beach, with offices in Chicago and New York City. For more information, please visit
Yahoo
27-04-2025
- Business
- Yahoo
Reverse mortgages: An overlooked retirement planning tool
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. If ever you want to clear out a room, start a conversation about reverse mortgages. You'll have the hors d'oeuvres and then some to yourself. But folks shouldn't shy away from talking about a tool that, in the right circumstances, could be used to improve their financial security in retirement. So said Don Graves, founder of the Housing Wealth Institute, in a recent Decoding Retirement podcast (see video above or listen below). "It's not spooky," he said. 'It's not dangerous. ... It's just a mortgage." This embedded content is not available in your region. According to Graves, a reverse mortgage, and specifically the Home Equity Conversion Mortgage (HECM), is a federally insured loan for retirees ages 62 and up that allows them to convert a portion of their home's value into tax-free dollars without giving up ownership or making monthly mortgage payments. "It's just a home equity loan for those aged 62 or older that gives them access to dollars without the burden of making a mandatory monthly principal and interest payment," he said. Read more: What are the pros and cons of a reverse mortgage? Reverse mortgages have a long history. Originating in 1961, they gained US federal government backing in 1988 through the HECM program. Internationally, these financial products are marketed under more approachable terminology. In the United Kingdom, they're commonly known as "lifetime mortgages" or "equity release" products, terms that more transparently describe their function of converting home equity into accessible funds during retirement while allowing homeowners to remain in their residences. According to Graves, about 98% of reverse mortgages in the US are HECMs, which are insured by the Federal Housing Administration under the US Department of Housing and Urban Development. And these federally backed loans provide important consumer protections and standardized terms that have helped establish reverse mortgages as a legitimate financial planning tool for qualifying homeowners. To be sure, reverse mortgages aren't for everyone. Graves said that of the 16,000 people he's talked to over the past 26 years in the business, only 3,000 reverse mortgages went forward. The resource may not make sense for those who don't plan to live in their home long-term, don't have a strategy or need for the funds, and don't need additional income sources. However, certain types of homeowners should consider a reverse mortgage, Graves said. They include homeowners ages 62-plus who plan to stay in their home long-term; those looking to increase cash flow, reduce risks, preserve assets, or add funds to retirement savings; and people who want to eliminate a mandatory monthly mortgage payment to free up cash flow. According to Graves, retirement in the future is going to be more expensive and less predictable. He explained that most retirees rely on three traditional buckets: employment, investments, and income from Social Security and/or a pension. "And those have to last them as long as they do," he said. Graves said that when confronted with the critical question, "Is that going to be enough? Is that going to make it?" most honest retirees say, "I don't think so." That's why another resource that 87% of American retirees possess — their home equity — could be the answer to improving retirement security. "You've got a fourth bucket," Graves said. "If we could turn your home into a reserve fund that was growing, could that increase your cash flow, reduce risks, preserve assets, improve liquidity, or even add new dollars back to your retirement savings?" he added. "The modern reverse mortgage is designed to do those five things." According to Graves, a reverse mortgage loan amount is based on the age of the youngest spouse, home value, and projected interest rates. The line of credit grows over time and is currently around 7%, he said. Some common uses of a reverse mortgage include eliminating existing mortgage payments, creating a growing line of credit for future needs, and supplementing retirement income. Retirees may also seek out a reverse mortgage to establish a reserve for healthcare and long-term care needs, aid in tax management strategies, and create a volatility buffer for their portfolio during market downturns. To keep the reverse mortgage in place, homeowners must continue to live in and maintain the property, pay property taxes, and maintain homeowners insurance. The loan becomes due when the last surviving borrower moves, passes away, or enters a care facility for 365-plus consecutive days. Of course, reverse mortgages are not without costs, including the up-front costs of mortgage insurance premiums, origination fees, and standard closing costs. Of note, consumer protections are also in place, including mandatory counseling with an FHA-approved agency. Plus, the reverse mortgage is a non-recourse loan, meaning borrowers will never owe more than the home is worth. Read more: Best reverse mortgage companies of April 2025 Graves said it's prudent to set up a reverse mortgage line of credit as early as possible if you're planning to stay in the home, due to its compounding growth effect. He outlined six other tips for determining whether a reverse mortgage is right for you: Consider a reverse mortgage as a tool in your retirement planning, not as a last resort. Consider using a reverse mortgage to eliminate existing mortgage payments and free up cash flow. Consider using a reverse mortgage as a "volatility buffer" to avoid withdrawing from investments during market downturns. Explore using a reverse mortgage for tax management strategies. Visit for a deeper educational dive on the topic. Attend mandatory counseling to fully understand all of the obligations and benefits. Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign in to access your portfolio
Associated Press
22-04-2025
- Business
- Associated Press
HECM Tool adds Smartfi's Choice Fixed Proprietary Product, Helping Forward Mortgage Brokers Step into Reverse with Confidence
GIG HARBOR, Wash., April 22, 2025 /PRNewswire/ -- HECM Tool, the leading reverse mortgage sales and conversion software, announced the integration of Smartfi Home Loans' Choice Fixed proprietary reverse mortgage product into its platform. The update makes it easier than ever for traditional mortgage brokers and forward loan officers to offer reverse mortgages, including Choice Fixed, to clients. With side-by-side comparisons and intuitive visuals, the HECM Tool bridges the gap between forward and reverse lending with clarity and ease. 'We're incredibly excited to see Choice Fixed now available within the HECM Tool platform,' said Kim Smith, Senior Vice President of Wholesale Lending at Smartfi®. 'This partnership combines our industry leading Choice product with a game-changing tool for the wholesale channel—demonstrating Smartfi's commitment to product innovation and making reverse mortgages easy.' Choice Fixed offers fixed-rate stability, quicker closings and broader borrower eligibility than FHA-insured HECMs. Now fully integrated into the HECM Tool's visual interface, loan officers can easily compare and present both HECM and proprietary reverse mortgage options for refinance or purchase transactions. 'This is exactly what brokers have been asking for,' said Joshua Evink, Vice President of Wholesale Lending at Smartfi. 'The HECM Tool gives brokers the confidence to offer reverse—and now they can include one of the most competitive proprietary products in the market.' HECM Tool is the only reverse mortgage software proven to improve conversion rates by simplifying the sales process with data visualization and dynamic reporting. With this new integration, brokers can: - Instantly compare HECM and Choice Fixed scenarios - Present refinance or purchase options clearly and effectively - Educate clients visually—without technical overwhelm - Step confidently into reverse, even with no prior experience 'Forward loan officers now have a clear path into the reverse space,' said Tane Cabe, Founder and President of HECM Tool. 'We're thrilled to include Choice Fixed—it's more than another product. It gives originators clarity and confidence when presenting reverse solutions.' Choice Fixed is available now for all HECM Tool subscribers, empowering brokers to grow by serving one of America's most underserved borrower groups. About HECM Tool HECM Tool is the premier sales platform for reverse mortgage originators, providing data visualization and scenario modeling that increases conversion rates. Learn more at About Smartfi Home Loans Smartfi offers industry-leading reverse mortgage products like Choice Fixed & HECMs while delivering best-in-class service to expand access for brokers and borrowers across retail, wholesale, and consumer-direct channels. Media Contact Tane Cabe [email protected] (253) 765-5035 View original content: SOURCE HECM Toolbox
Yahoo
27-03-2025
- Business
- Yahoo
How and when do you pay back a reverse mortgage?
A reverse mortgage is a type of home loan for older homeowners who have significant equity in their property. Rather than making monthly mortgage payments to a lender every month to pay down your balance, the reverse mortgage lender sends you payments as you tap your home's equity. It can be a good source of income during retirement years. However, like any loan, this unique type of mortgage must be repaid eventually. So, how do you pay back a reverse mortgage? In this article: How reverse mortgage work When do you need to repay a reverse mortgage? Why you may want to pay off a reverse mortgage early How do you repay a reverse mortgage early? FAQs A reverse mortgage allows homeowners to use their home equity for income while remaining in their houses. Rather than homeowners making payments toward the mortgage principal and interest to a lender, a reverse mortgage lender provides the borrowers with a lump sum, regular monthly payments, or a combination. The income accrues interest that must be repaid under several circumstances — most commonly when the homeowners sell their house or pass away. The principal, interest, and fees accumulate monthly, meaning the total balance owed increases, and the home's equity is reduced over the loan term. This is the opposite of traditional mortgages: you gain home equity as the balance gradually decreases. Reverse mortgages, most of which are Home Equity Conversion Mortgages (HECMs) through the Federal Housing Administration, are available to homeowners aged 62 and older for their primary residence, depending on how much equity they have in the home. The homeowners must keep paying their property taxes and homeowners insurance and keep the house in good condition when they have a reverse mortgage. Your lender may require you to pay back your reverse mortgage when one of several scenarios occur, including the following: You move, and the home is no longer your primary residence. You don't pay your homeowners insurance or property taxes. You don't keep the property in good condition. You sell the property. You are away for more than 12 months in a healthcare facility such as assisted living or a nursing home. You and any co-borrowers pass away. As with a traditional mortgage, you may have one or more co-borrowers on your reverse mortgage loan. In that case, the reverse mortgage does not have to be repaid until all the co-borrowers move out of the house or die. In addition, rules by the Department of Housing and Urban Development (HUD) allow an eligible non-borrowing spouse to remain in a house without repaying the HECM if they meet certain requirements, including: The borrower and non-borrowing spouse must be legally married and stay married until the borrowing spouse dies. (They must have been married when closing on the HECM — unless they were engaged but unable to get married due to their sexes before closing, as long as they got married later.) The non-borrowing spouse must be named a non-borrowing spouse in the reverse loan documents. The reverse mortgage cannot be in default unless it is related to the last borrower's death. The non-borrowing spouse lived in the property when the reverse mortgage loan was closed and continues to live in it as their primary residence. The non-borrowing spouse must obtain title to the property or a legal right to remain in the property, such as a court order, for the rest of their life within 90 days after the death of the last surviving borrower. A reverse mortgage must be paid off when the last surviving borrower or eligible non-borrowing spouse moves out of the residence or dies. While the above scenarios refer to times when a reverse mortgage must be repaid, you might also want to know how to pay off a reverse mortgage early. If you apply for a reverse mortgage and change your mind, you have the right of rescission. This means you can notify the lender in writing within three business days to cancel the reverse mortgage and have any fees you paid returned. In the longer term, there are several reasons you may want to pay off your reverse mortgage early, such as: You don't need the money anymore. You want to move but keep your house as an investment or a second home. You want to leave your house to your heirs without a mortgage to be repaid. The reverse mortgage funds are not enough to keep up with your property taxes and homeowners insurance, so you want to sell and move. You find the accumulating debt of the reverse mortgage stressful. There are multiple ways to repay a reverse mortgage early, depending on whether you want to keep your home or move. If you want to keep your home, your options may include: Making incremental payments to lower your balance Paying back the loan balance in a lump sum with cash from savings or investments Refinancing the reverse mortgage into a traditional mortgage if you qualify Borrowing funds with a home equity loan or home equity line of credit (HELOC) to pay off the reverse mortgage balance If you prefer to move, your options may include: Selling the house and using the proceeds to repay the reverse mortgage; if there are additional proceeds from the sale, you keep those funds. If you are struggling financially and unable to keep up with your property taxes and insurance, you may be in danger of losing your home to foreclosure — to avoid that process, ask your lender about a deed in lieu of foreclosure, which is faster and less costly than a foreclosure but still typically means you have to move. When you inherit a house with a HECM reverse mortgage, you have a few options for repaying the loan. If you want to keep the home, you can pay off the reverse mortgage with cash or take out a traditional loan to repay the reverse mortgage if you qualify. If you don't want to keep the house, you can sell it, repay the loan, and retain any remaining proceeds. If the property sells for less than the loan balance, you can still repay as little as 95% of its appraised value. Typically, you have 30 days to buy, sell, or turn the house over to the lender after you receive a due and payable notice from the reverse mortgage lender. However, you may be able to extend that to six months, depending on the company. Yes, there is no prepayment penalty for paying back a reverse mortgage early. If you receive a notice that you are in default on your reverse mortgage because you did not pay your property taxes or homeowners insurance, keep your home in good condition, or certify that you are living in the house as your permanent residence, you may be able to rectify the situation and keep your home. For example, you can submit your missed payments as a lump sum or contact the lender about required repairs. If you can't pay your taxes or insurance or repair your home, you are in danger of losing your house in foreclosure. If you no longer live in the house, you can sell it to pay off your reverse mortgage. When you or your heirs repay your reverse mortgage, you may not have to pay the difference between your home's appraised value and the mortgage balance. A HECM reverse mortgage includes insurance that covers the difference as long as you or your loved ones pay back at least 95% of the house's appraised value. Most reverse mortgages have a 'non-recourse' clause, which means that you or your heirs can't owe more than the value of your home. This article was edited by Laura Grace Tarpley.
