Get Home Equity Conversion Mortgage - Reverse Mortgage

CIT announced late last week that it is selling Financial Freedom, the reverse mortgage company it acquired as part of its 2015 acquisition of OneWest Bank.

CIT Group first acquired Financial Freedom in 2015 when it purchased its former parent company, OneWest Bank, in a $3 billion transaction.

CIT Group, the parent company of CIT Bank, OneWest Bank, and Financial Freedom, announced Tuesday that it completed the previously announced sale of reverse mortgage company Financial Freedom to an unknown buyer.

Southern California's banking landscape shifted again Monday when CIT Group Inc. completed its $3.4-billion purchase of Pasadena-based OneWest Bank.

OneWest Bank in Pasadena, born from the ashes of failed high-risk home lender IndyMac Bank, has agreed to be acquired by commercial lender CIT Group for $3.4 billion, a hugely profitable deal for the hedge-fund and private-equity investors that have owned the bank for five years.

A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash. ... The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.

CONS of a reverse mortgage The loan balance increases over time as interest on the loan and fees accumulate. As home equity is used, fewer assets are available to leave to your heirs. ... Fees may be higher than with a traditional mortgage. (Ask us about our lower-cost options.)

A reverse mortgage is a loan for homeowners who are 62 and older that allows them to convert a portion of their home equity into money that can be used for any reason. If you have an existing mortgage, you must use your proceeds to pay that off first, thus eliminating the required monthly mortgage payment.

A reverse mortgage is also not a good idea for older homeowners unless there is nowhere else to obtain needed cash. "Remember, the person or company lending you the money will benefit financially," he adds. "However, a retiree/homeowner could also benefit because they can stay in their home and do not have to move.

While there are many similarities between the two loans, the reverse mortgage has a few additional features. The biggest difference between a traditional and reverse mortgage is that there are no monthly payments required on the reverse mortgage. You can pay as little or as much as you want when you want.