BNY Mortgage Co. LLC, a unit of Bank of New York Co., said it has obtained approval from the Massachusetts Division of Banks to originate a Fannie Mae reverse mortgage in the state.
BNY said it is the first residential lender to win approval to originate these mortgages in Massachusetts. The Reverse Mortgage Loan Act of November 1998 requires lenders to submit proposals for making reverse mortgage loans to the state Division of Banks.
BNY plans to offer a reverse mortgage that is designed for homeowners older than 62. Borrowers tap their equity in the home to get cash in the form of a disbursement, fixed monthly payments, or a line of credit for living expenses, home improvements, health care, or other expenses. The loan need not be repaid until the borrower is no longer living in the home as a principal residence.