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Liberty Reverse Mortgage

4.15 Stars (4 Reviews)
Updated: June 22, 2023
By: Jonathan Trout
Jonathan Trout
Content Manager
Jonathan is a former product and content manager for Retirement Living. His background spans sales/marketing, finance, and telecommunications. Jonathan’s expertise in consumer wellness and research-backed data stories helped educate seniors on financial planning, retirement, and community resources. Jonathan graduated from Oklahoma State University with a B.S. in Environmental Sociology.
Content Manager
Edited By: Jeff Smith
Jeff Smith
Sr. Content Manager
As Retirement Living’s senior content manager, Jeff oversees the product and publishing of all retirement, investing, and consumer wellness content on the site. His extensive expertise in brand messaging and creating data-driven stories helps position Retirement Living as a top authority for senior content and community resources.
Sr. Content Manager

Liberty Reverse Mortgage specializes in reverse mortgages, also known as home equity conversion mortgages (HECM). The company has served over 64,000 seniors since opening for business in 2004. Liberty Reverse Mortgage offers reverse mortgages in every state except Utah through direct-to-consumer lending and offers wholesale financing solutions to other lending institutions.

Liberty Reverse Mortgage

Editorial Breakdown

Customer Service 4.3 Stars
Product Options 3.8 Stars
Closing Speed 4.3 Stars
Technology 3.5 Stars

Overall Rating 3.9 Stars

Bottom Line

Liberty Reverse Mortgage has funded over $7.5 billion in loans and specializes in reverse mortgages. Liberty's Iron Clad Guarantee matches any competitor's reverse mortgage deal or gives you a $100 VISA gift card, among other things. Read about our picks for the top reverse mortgage lenders by clicking the link below.

Liberty Reverse Mortgage Review

Liberty Reverse Mortgage has funded more than $7.5 billion in loans with over 1,000 business partners nationally. Liberty is currently a wholly owned subsidiary of the financial services company Ocwen Financial Corporation and sets itself apart from other HECM (reverse mortgage) lenders with its Liberty Iron Clad Guarantee.


  • Over a decade of reverse mortgage lending experience
  • Consumer-direct financing available in 49 states, excluding Utah
  • Website provides detailed information


  • Brokers selling Liberty Reverse Mortgage loans should adhere to Liberty’s standard, but it’s not guaranteed unless you work with Liberty directly

Liberty Reverse Mortgage Reverse Mortgage Packages

Most reverse mortgage lenders work with many other types of home loans, but Liberty Reverse Mortgage specialized only in reverse mortgages, offering two HECM options:

  1. Standard HECM: This reverse mortgage allows you to use the equity in your home to receive cash.

  2. HECM for Purchase: This reverse mortgage is useful if you need funds to purchase your next primary residence and can be an option if you are interested in downsizing your house. A HECM for Purchase covers about half the cost of the new home; borrowers must come up with the remaining funds from other sources.

The Federal Housing Administration (FHA) approves lenders and tracks qualified loans, so lenders like Liberty Reverse Mortgage must work hand-in-hand with the agency and follow consumer protection guidelines.

Liberty Reverse Mortgage Reverse Mortgage Costs & Fees

Fees and closing costs for a Liberty Reverse Mortgage direct-to-consumer reverse mortgage loan vary depending on your state. However, some fees are set by Housing and Urban Development (HUD) or FHA regulations.

FHA Mortgage Insurance2% of home value, capped at $13,593. Annual 0.5% based on the outstanding loan balance
Origination Fees2% of first $200,000 of property value plus 1% on remaining value, capped at $6,000
Appraisal FeesFees vary by size of the home, location and other factors
Reverse Mortgage CounselorFees vary. May be free or included in origination fee
Other FeesTitle, settlement, and closing cost fees similar to a conventional mortgage
Liberty Reverse Mortgage Reverse Mortgage Costs

FHA mortgage insurance covers the reverse mortgage lender when the loan balance exceeds the home value if the property is sold to pay off the loan.

Origination fees are paid to the lender. This fee can be paid at closing or rolled into the loan amount, and some may be due with your application.

Appraisal fees will likely be required. A HUD-approved appraiser will complete a very detailed appraisal of your property. You may have to comply with repairs on the home before proceeding with the reverse mortgage.

Reverse mortgage counseling is a HUD requirement. Before you apply for a reverse mortgage, you discuss your finances and the loan requirements with a financial counselor.

Liberty Iron Clad Guarantee

If you work directly with Liberty Reverse Mortgage, you will benefit from the Liberty Iron Clad Guarantee. Their network of lenders outside of the Liberty umbrella may or may not offer the guarantee. Here are the details:

  • Liberty will beat or match a competitor’s reverse mortgage, or they will give you a $100 VISA gift card.

  • Liberty Reverse Mortgage will shave $500 off closing costs if you don’t close within 60 days of submitting your application. This discount does not apply to HECM for Purchase loans and can’t exceed total closing costs.

  • You can complete the entire reverse mortgage loan application process from your home if you prefer, and you can change your mind and stop the loan any time before it is funded.

  • You will work with a team of experts through an easy five-step loan process, and you’ll get weekly updates. Liberty Reverse Mortgage always protects your personal information.

  • Call between 9 a.m. and 5 p.m. PST, and you will reach an agent who is trained to answer all of your questions.

Liberty stats
Source: Liberty Reverse Mortgage

Liberty Reverse Mortgage Complaints

Liberty Reverse Mortgage currently holds an A+ rating with the Better Business Bureau and is an accredited member with only two complaints listed over the last three years. One complaint was from someone who did not understand that application fees are nonrefundable if a loan is not approved. Five reviews from others who did not have a reverse mortgage with Liberty Reverse Mortgage included vague comments or complaints about advertising. Overall, Liberty averages 7 out of 10 stars across consumer review sites and 4.5 stars out of 5 on ConsumerAffairs.

Liberty Reverse Mortgage FAQ

  • Will I give Liberty Reverse Mortgage possession of my home if I get a reverse mortgage?
    No, your name stays on the title of your property, and you continue to own it.

couple smiling


Source: Getty
  • Will my heirs have to pay Liberty Reverse Mortgage if my home value is less than the loan balance when I die?
    No, the FHA insures reverse mortgages, and in this situation, pays the lender the difference between your property’s value and the mortgage balance.

  • When do I have to repay a reverse mortgage loan?
    You will not pay off a reverse mortgage. Your heirs or estate will do so once you no longer live in the home for 12 months or you pass away. At that time, the property can be sold to repay the loan, or the reverse mortgage can be paid with other funds if heirs have plans for using your house. A third option is to let the lender take possession of the home.

  • How can I use the proceeds from a Liberty Reverse Mortgage?
    According to the National Reverse Mortgage Lenders Association, you can use the funds received for just about anything. Examples are paying bills, renovating your home, helping children financially and even paying for rides from Uber or Lyft so you can remain active if you no longer drive.

  • How much money can I get from a Liberty Reverse Mortgage?
    If your loan application is approved, you will receive a percentage of the amount of your home equity after subtracting any debt you owe. The appraised value and final loan amount depend on other factors, including FHA limits and the borrower’s age.

  • Could I lose my home with a Liberty Reverse Mortgage?
    The counseling session will cover what you need to comply with to remain in good standing with your lender: pay property taxes and homeowner’s insurance, maintain the property, and keep up on repairs. You must also continue to live in the home. If you violate any of these conditions, it is possible that the lender will initiate foreclosure.

Great Service

Finance of America Reverse
4.8 Stars

Finance of America Reverse

  • Excellent Customer Reviews
  • Competitive Pricing

Visit Site

Conclusion on Liberty Reverse Mortgage

Liberty Reverse Mortgage has the locations and licensing to help most senior consumers with their reverse mortgage needs. As with all reverse mortgages, it is imperative that seniors fully understand the pros and cons associated with their specific situation and educate themselves about reverse mortgage scams to be sure it is the best financial solution.

To check your eligibility for a product with Liberty Reverse, call (888) 991-0232 or visit their website.

4 Liberty Reverse Mortgage Reviews

Write Review
1 Star

September 25 2022 3:18AM

Liberty’s true colors have started to show… I had big plans.. travel, improvements, just in general, an easier life.. May as well forget that! After getting two draws from my account, I was told this next would be my last.. My money was gone. When I asked why, the answer was “fees”… Ok , what fees?

Fees to the tune of $117,000! When I tried to understand the “Fees”, no one was available to speak with me…So now my limited income is More limited. All I asked for was an itemized statement of where my money had gone….


J H.
Troutville, VA
1 Star

September 24 2022 4:20PM

We received a Hard Credit Check from Equifax Mortgages for Liberty Reverse Mortgage on 09/22/2022. I am glad I had a credit bureau flag this for me so we could put out a FRAUD ALERT. We have not applied or ever even talked with this company on the phone.

We have had to FREEZE all the Credit Bureaus and have made a report to the local police department. We have also reported to the BBB, FTC, and will be making a report to our government website and the DOJ.

Dannella I.
Waldport, OR
1 Star

May 12 2022 1:37PM

Run run far away from these crooks, dealt with them for 4 months jumping through hoops only to find out right before closing that I had to pay $20,000 up front, total **, I suggest if you're looking into this go to Mutual of Omaha!! I did and it worked for me!!

David G.
Freeport, FL
1 Star

November 19 2021 12:52AM

Sales agent Janice ** made a big mistake on my application and lied to me about it. I was re-financing my reverse mortgage and I had to chose a plan that would lock in interest rates on an annual or monthly basis. I chose the annual rate program, mostly based on the agent’s recommendation.

The agent then signed me up for the monthly program instead. I only found out about it when I received the HUD-1 form just before closing.

I immediately notified the agent and she told me that I had chosen the monthly program and if I were to switch to the annual program now it would be at a higher interest rate and they would also charge me a $6000 origination fee, which hadn’t been included on either option that I was originally offered.

I felt sure that I selected the annual plan and asked the agent if she was sure and about that. She said yes.

Later she said that the monthly plan was all that we had discussed and even left me with the impression that she had listened to the recording of our conversation and confirmed that I had said that I wanted the monthly plan. I went on to closing with the monthly plan as that was my best option.

The day before closing I sent an email to the agent saying that I was okay with everything, but again expressed my belief that I had actually chosen the annual program.

The answer I got from the agent was more gaslighting about me choosing the monthly program and another offer to switch to the annual program with an even higher interest rate plus the $6000 origination fee.

Well, I had had enough of this. I contacted a supervisor and said that unless I could listen to the recording of my phone call I was canceling the loan. The supervisor listened to the call and told me that I was 100% correct in that I did request the annual rate program.

I told the supervisor that I wanted a new loan with the annual program with the same interest rate that I would have got originally or else I was canceling the loan. Liberty wouldn’t do it. I then said that I would go ahead and keep the loan if my sales agent emailed me and explained herself.

I never heard from her, so I canceled. I’m not going to do business with a company that won’t fix their mistakes and has an agent that systematically lies to me.

I addition to this, while I was applying for my loan, my contact information was attached to another couple’s name and I was getting calls and sensitive mail from Liberty intended for them.

Also the closing had to be rescheduled because of Liberty’s mistake. I was notified, but the notary person wasn’t.

Joseph M.
Rockville, UT