Longbridge Lowers The Rate On Its Proprietary Reverse Mortgages

Top-five U.S. reverse mortgage lender Longbridge Financial announced Tuesday that it’s making changes to its Platinum proprietary product suite — including a lower interest rate of 7.99% and a higher principal limit factor that allows borrowers to tap more of their home equity.

This week’s changes were precipitated by the company’s desire to help more seniors address the rising cost of living through the collective $14 trillion in equity they hold.

They also come at a time when Longbridge and other leading lenders are placing more capital and resources into their proprietary products to attract demand in the secondary market.

Proprietary loans accounted for 40% of reverse mortgage volume in September, just prior to the federal government shutdown and a lengthy pause in new endorsements of Home Equity Conversion Mortgages (HECMs). And proprietary reverse mortgages are becoming more viable assets for institutional investors who’ve historically ignored them.

“I think we’re in market now with our ninth securitization in the last two years,” Longbridge CEO Chris Mayer said in an interview with HousingWire’s Reverse Mortgage Daily.

“Through the last deal, every one of those traded better than they traded before, meaning investors were willing to accept a lower rate of return to buy our bonds, the interest rate on the bonds fell, or the spread between Treasurys and the bonds kept falling. And those lower spreads give us room to improve the products from the perspective of consumers.”

Mayer said that the higher principal limit factor will allow borrowers of the popular Platinum Peak loan to access up to 25% more in proceeds compared to a HECM. And for borrowers who care less about maximizing their funds and more about a lower rate, the 7.99% rate may catch their eye.

“What we’re trying to do is ask, ‘Who are the people who are not taking out reverse mortgages today, and how can we create products to bring them into the space to grow the overall size of the pie?’” Mayer explained.

The company’s proprietary product line, launched in 2018, has been updated on other occasions, including the addition of the Platinum Preserve loan in May 2025. That product allows borrowers to access some of their home equity immediately while reserving a portion for future needs.

The program is available to qualifying borrowers who are at least 55 years old. Options include single draws, fixed-rate loans or adjustable-rate lines of credit.

“Retirees today want choices that fit their lives,” Melissa Macerato, the company’s chief revenue and marketing officer, said in a statement. “Whether it’s a flexible line of credit, features that help preserve equity, or a lower rate option on a proprietary reverse, we’re building a suite of tools that meets borrowers where they are and helps our partners meet more needs in a dynamic market.”

Mayer said he hopes that key business partners like financial advisers will take a closer look at the Platinum product line, since a lower-rate loan may bring stability to a client’s investment portfolio while giving them access to necessary funds.

He also believes that the reverse mortgage industry is benefiting from a shift toward new product options beyond the traditional HECM loan. He referred to Finance of America’s second-lien loan and HighTechLending’s first-lien HELOC as innovative products that “offer opportunities for the space to grow.”

“I feel very optimistic about where the industry is,” he said. “Industries don’t run on one or two companies. You need companies who all do their own thing, and are really about trying to grow the market and the size of the pie, because the need is so large.

“In reality, we shouldn’t be thinking that we’re competing against each other. Of course, we are, but in a real sense, we’re competing against people doing nothing with their home equity.”