ALEXANDRIA, Va. – Pentagon Federal Credit Union, the nation’s third-largest credit union, on Friday said it has signed with Sun West Mortgage Co. to offer reverse mortgages to its members.
PenFed, one of the biggest mortgage lenders among credit unions, initially will market the federally insured Home Equity Conversion Mortgage reverse mortgage to its members located in Washington, D.C., Maryland and Virginia.
PenFed said its reverse mortgage eliminates the upfront origination fee – 2% of the adjusted property value – and the $35 monthly servicing fee, which are customary in the industry. Consequently, PenFed said the competitively priced reverse mortgage will make additional home equity available to homeowners.
“We have eliminated both of these fees because PenFed is committed to providing the best value to our members,” said Shashi Vohra, vice president of business development for PenFed. “PenFed's HECM comes with no origination fee, no servicing fee, and a lower rate than is offered by most other financial institutions.”
Sun West will provide systems to originate and service the HECM loans through its Reverse Soft Online program.
PenFed expects to launch this product nationwide after the initial pilot is complete.
Sun West, based in Parker, Colo., is licensed in 45 states.
