Longbridge Financial Advances Senior HELOC Offering and Prepares Wholesale Expansion
Longbridge Financial has promoted Larissa Morrell to vice president of product development as part of an ongoing effort to broaden its financing options beyond traditional reverse mortgages. Morrell, an industry veteran with more than 25 years of experience who previously managed sales logistics at Reverse Mortgage Funding, takes charge of product strategy across the firm's technology, operations, compliance, and sales divisions. The leadership transition follows her work in launching Longbridge's specialized home equity line of credit designed specifically for older homeowners.
The product, termed HELOC for Seniors, was developed through a strategic partnership utilizing technology from Figure Technology Solutions. This collaboration allowed Longbridge to deploy the platform within about a year. Designed for homeowners transitioning into retirement who require home equity access but are not ready for a traditional reverse mortgage, the credit line features interest-only payments and loan funding in as few as five business days. The structure attempts to mitigate the payment shocks associated with conventional HELOCs after their initial draw periods end while offering greater flexibility than standard home equity conversion mortgages.
Operational adjustments were necessary following the initial launch. Longbridge initially deployed the credit line primarily as an online, self-service platform. While tech-savvy applicants navigated digital documentation submission easily, company observations revealed that many senior applicants still sought direct guidance from loan originators. In response, Longbridge built a dedicated internal sales team to assist borrowers through the application process, which company officials identified as a critical factor in driving consumer adoption.
According to company data, the senior HELOC product currently generates approximately $5 million in monthly origination volume through direct-to-consumer retail channels. While this represents a niche segment alongside the company's core reverse mortgage business, Longbridge intends to expand distribution over the next year. The planned growth strategy centers on rolling out the product to wholesale partner networks, enabling third-party mortgage brokers to originate the specialized credit lines alongside traditional loan products.
For older property owners and real estate investors planning retirement liquidity, the availability of hybrid equity-extraction tools offers an alternative to refinancing or taking out a standard reverse mortgage. Borrowers gain access to quick home equity funding with interest-only payment options during initial years, though property owners must maintain ongoing debt payments unlike with traditional reverse mortgages. Meanwhile, mortgage brokers may soon gain additional loan inventory targeted at mature homeowners seeking equity solutions short of a complete reverse mortgage.
Source: HousingWire
