Reverse Mortgage Funding LLC (RMF): What Happened to Borrowers

Reverse Mortgage Funding LLC, often shortened to RMF, no longer makes reverse mortgages. The company filed for Chapter 11 bankruptcy protection in Delaware on November 30, 2022, and a court confirmed its plan of liquidation on April 28, 2023. In December 2022, Ginnie Mae took over servicing of the company's portfolio of FHA-insured loans. Borrowers' loan terms did not change, and Ginnie Mae reports that it kept funding their draws.

Two kinds of people ask me about this company. Some have a loan that started there and want to know who has it now. Others are shopping, saw the story, and are asking a fair question: what happens to my reverse mortgage if my lender goes under? The RMF case is the clearest real-world answer the industry has, so it is worth walking through with the actual records.

Brian Albrich and Fairway Independent Mortgage Corporation are not affiliated with, endorsed by, or sponsored by Reverse Mortgage Funding LLC, Reverse Mortgage Investment Trust Inc., or Ginnie Mae. Company names are used here only for identification.

Is Reverse Mortgage Funding LLC Still in Business?

No. Reverse Mortgage Funding LLC is not taking applications, and it will not be again in its old form. Trade press reported at the time that the company stopped originating loans in late November 2022, days before the bankruptcy filing. The plan the court confirmed the following spring was a plan of liquidation, which means the business was wound down and its assets distributed to creditors. It was not a reorganization meant to bring the lender back.

You will still see the name. Older comparison articles list it among active lenders, and loan documents, deeds of trust recorded with the county, and old statements carry it. None of that means the company is lending. If a page presents RMF as a place to apply today, check the date on it.

What Happened to Reverse Mortgage Funding LLC: The Timeline

These dates come from the public court docket and from federal agency documents, not from memory or marketing copy:

Ginnie Mae's 2023 Annual Report explains the pressure behind the filing in general terms. Rising interest rates squeezed reverse mortgage companies in a particular way, and the report says that stress "was evidenced in the first quarter of Fiscal Year 2023, when a large HMBS issuer, Reverse Mortgage Funding (RMF) filed for bankruptcy." I mention the lender stability question briefly on my page about how to spot a reverse mortgage company to avoid. This page picks up where that one stops: what happened to the borrowers afterward.

One caution on the Inspector General line in the table. HUD's Inspector General announced that inquiry to examine Ginnie Mae's oversight. The announcement is not a finding against anyone, and I am not characterizing its results here.

Who Took Over Reverse Mortgage Funding LLC Loans

Most reverse mortgages in the United States are Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration. After closing, lenders typically pool HECMs into securities backed by Ginnie Mae, a federal corporation inside HUD. The lender that pools them is called the issuer, and the issuer is responsible for servicing the loans and for funding borrowers' future draws.

When an issuer fails, Ginnie Mae can remove it and take its place. That is what happened here. In Ginnie Mae's words, it "extinguished RMF from the HMBS program and seized and assumed control of the servicing of RMF's HMBS portfolio consisting of over 30% of the HMBS market with a value of $20 billion." The report adds that Ginnie Mae "assumed all obligations to the HMBS investors and all servicing responsibilities, stepping into the role of issuer." It also notes this was the first time Ginnie Mae had ever done this with a HECM issuer.

Ginnie Mae does not answer the phones itself. Its financial statements say it delegates day-to-day portfolio management to contracted servicers. I am not going to name which company handles a given former RMF loan today, because servicing assignments change and your own statement is the reliable source. More on that below.

Two groups of loans sit outside that story:

• HECMs that were never in a Ginnie Mae pool, or that had already left one. Some older HECMs are assigned to HUD late in their life. HUD uses its own servicing contractor for those, which I cover on Compulink and Celink reverse mortgage servicing.
• Proprietary loans. The company also made private reverse mortgages that were not FHA-insured. Those were never part of the Ginnie Mae program, so Ginnie Mae did not take them over. They follow whoever owns the loan.

Did Borrowers Keep Getting Their Money?

This is the question that matters most to anyone with a line of credit or monthly payments, so I want to be precise about what the records show and what they do not.

What the records show. On the second day of the case, the company asked the bankruptcy court for authority to keep honoring its reverse issuer and servicing obligations. Later that month Ginnie Mae took over the HECM portfolio. In its annual report, Ginnie Mae says that in fiscal year 2023, acting as issuer, it "purchased $695.8 million in reverse mortgage loans, at fair value, representing additional principal draws by borrowers." Put plainly, borrowers kept drawing on their loans and Ginnie Mae put up the money. Ginnie Mae's president described the goal as making sure "seniors were able to access their home equity."

What the records do not show. I have not found an official tally of whether any individual draw request was delayed in the weeks around the filing. So I will not tell you that not one payment was late. What I can tell you is that the system built for this situation was used, at scale, for the first time, and the federal agency responsible reports that it funded the draws.

Why a HECM borrower has a backstop at all. It is written into the law that created the loan. The HECM statute, 12 U.S.C. 1715z-20(i), directs the HUD Secretary to "take any action necessary" to provide a borrower with funds the borrower is entitled to "but that the mortgagor has not received because of the default of the party responsible for payment." HUD's regulations repeat it. Under 24 CFR 206.121, HUD investigates a borrower's complaint about late payments, and if it finds the lender "unable or unwilling to make all payments required under the mortgage," HUD "shall pay such payments and late charges to the borrower." Part of what the FHA mortgage insurance premium on a HECM buys is this protection.

That protection is about the money owed to you. It does not promise smooth customer service during a transition, and it does not change what you owe. A reverse mortgage is still a loan that must be repaid.

HECM vs. Proprietary Loan: What Changes When a Lender Fails

The RMF case went the way it did largely because most of the loans were HECMs. A proprietary reverse mortgage, sometimes called a jumbo, is a private loan with no FHA insurance. I offer both kinds, so I would rather you hear the difference from me than discover it later.

The last row deserves a plain explanation. Many proprietary reverse mortgages pay everything out as one fixed-rate lump sum at closing. If that lender later fails, there is nothing left for it to owe you. Your loan simply gets a new owner and a new servicer. A proprietary loan with a line of credit is different, because future draws depend on the company responsible for funding them and on what your contract says if it cannot. For a HECM line of credit, federal law fills that gap. For a private one, the contract has to.

None of this makes one loan right and the other wrong. For a home worth more than the 2026 HECM limit of $1,249,125, a proprietary loan may be the only way to reach the equity above that ceiling. It is simply one more thing to weigh, and it is worth asking any lender how its proprietary line of credit is funded. The full comparison, including which protections carry over and which do not, is on jumbo reverse mortgages.

If Your Loan Came From Reverse Mortgage Funding LLC

If you or a parent closed a loan with Reverse Mortgage Funding LLC, here is what I would do, in order.

1. Find your current servicer on your latest statement. Not on the closing documents, and not from a search engine. Federal servicing rules (Regulation X, 12 CFR 1024.33) require a written notice when servicing transfers, generally at least 15 days before or within 15 days after the change. If you have a letter like that in a drawer, it will name both the old and the new servicer.
2. Know that your terms are the same. Your interest rate terms, your available line of credit, the growth on that line, and the non-recourse protection belong to the loan. A change of owner or servicer does not rewrite them. How the line works is on reverse mortgage line of credit.
3. Keep doing your part. Property taxes, homeowners insurance, upkeep, and the annual occupancy certificate are still due, and a missed certificate can cause real trouble no matter who services the loan. See can you lose your home with a reverse mortgage.
4. Put problems in writing. Regulation X error-resolution and information-request rules apply to reverse mortgage servicers. A written notice of error has to be acknowledged and answered on set timelines, which I lay out on the servicing page. If that fails, you can file a complaint with the Consumer Financial Protection Bureau, and for a HECM draw that is not being paid you can contact HUD.
5. Watch for impostors. A failed lender's customer list is attractive to scammers. Be careful with any call or letter that says your loan "must be redone" because the company closed. It does not. The patterns to look for are on reverse mortgage scams and red flags.

Some former RMF borrowers will find a new loan makes sense, for example if the home has gained a lot of value or the old loan was a fixed-rate lump sum and a line of credit would serve better now. Many will not, because a new loan has new costs. The math is on reverse mortgage refinance. Heirs settling a parent's loan should start with reverse mortgage heirs.

Reverse Mortgage Funding LLC Reviews: What They Tell You Now

People still search for Reverse Mortgage Funding LLC reviews, and I understand why. If a company's name is on your deed of trust, you want to know what kind of company it was. Two things to keep in mind when you read them.

First, reviews written before late 2022 describe sales and closing experiences with a lender that no longer operates. They cannot tell you anything about the servicer handling your statements today. Second, a review measures service, and the RMF case is a reminder that service and protection are separate things. The federal backstop covers money a HECM borrower is owed. It does not cover how easy it is to reach someone during a transition, and no law could.

If you are choosing a lender now, the better use of your time is asking each one who services its loans after closing and how long it has been in this line of business. My five questions to ask any reverse mortgage company cover that.

What Every Reverse Mortgage Requires of You

Whether it was made by a lender that has since closed or by one that is open today, every FHA-insured HECM carries these terms, because they come from HUD rather than from the lender:

• Age. Borrowers must be 62 years of age or older to qualify for a HECM. Certain proprietary reverse mortgage products may be available to borrowers as young as 55, depending on the state and program.
• You keep the title. With a reverse mortgage you keep the title to and ownership of your home.
• Ongoing obligations. You remain responsible for paying property taxes, homeowners insurance, and any HOA dues; for maintaining the home; and for occupying it as your primary residence. Failure to meet these obligations may cause the loan to become due and payable.
• Non-recourse. A HECM is a non-recourse loan, so you or your heirs will never owe more than the home is worth at the time the loan is repaid.
• Counseling. Before obtaining a HECM, all borrowers must complete a counseling session with a HUD-approved reverse mortgage counselor. See reverse mortgage counseling.

A reverse mortgage is a home-secured loan that must be repaid. Its proceeds are loan advances rather than income, so they are generally not treated as taxable income, but confirm your own situation, including any effect on need-based benefits, with a tax or benefits advisor.

A Reverse Mortgage Funding LLC Alternative in Bend and Central Oregon

Reverse mortgages today come almost entirely from lenders that specialize in them. Reverse Market Insight figures reported by HousingWire for August 2026 put the three largest HECM lenders at Finance of America, Mutual of Omaha, and Longbridge, together about 62 percent of the top-100 lenders' total. Fairway Independent Mortgage Corporation, where I work, has a dedicated reverse division that originates FHA-insured HECMs as well as jumbo and proprietary reverse loans. How the larger lenders compare is on reverse mortgage companies compared.

I will not tell you any lender is immune to what happened to RMF. What I can tell you is what the case showed: with a HECM, the protections that matter most are attached to the loan and backed by federal law, not by the health of the company that closed it. That is a good reason to understand which kind of loan you are getting before you sign.

The equity in this part of Oregon makes the question a practical one. About 21.8 percent of Deschutes County residents are 65 or older, and the Beacon Report's August 2026 figures put the median single-family sale in Bend at about $721,000. What those values can mean for a reverse mortgage, town by town, is on Central Oregon home values and reverse mortgages.

Brian Albrich meets homeowners at 601 NW Harmon Blvd in Bend and across Redmond, Sunriver, Sisters, La Pine, and Prineville. Bring your statement if you have an existing loan, your questions if you do not, and anyone in the family who should hear the answers. The Bend reverse mortgage guide covers the local picture in more depth.

Reverse Mortgage Funding LLC: Frequently Asked Questions