Luminate Bank Sees 47% Growth in Reverse Mortgages as It Expands Through Acquisitions
Minneapolis, United States | September 28, 2026: Luminate Bank is expanding its reverse mortgage business by combining home equity lending with banking services and targeted acquisitions. The Minneapolis-based lender recorded 211 Home Equity Conversion Mortgage (HECM) endorsements between January and August 2026, a 47% increase from the same period last year, as it seeks to build a broader financial services platform for older homeowners.
In an interview with HousingWire, co-founder and President of Mortgage Lending Eric Lovins discussed the bank’s growth strategy, its focus on educating financial planners and Realtors, and its approach to mergers and acquisitions (M&A).
Reverse Mortgage Endorsements Rise 47%
Luminate Bank recorded 211 HECM endorsements in the first eight months of 2026, according to data compiled by Reverse Market Insight. The increase reflects the lender’s efforts to expand its presence in a reverse mortgage market dominated by established players.
Lovins said the bank is targeting older homeowners who may have substantial home equity but are unfamiliar with the lending options available to them. The lender is working to improve awareness of reverse mortgages among consumers and the professionals who advise them.
Banking Services Form a Key Part of Its Growth Strategy
Luminate’s business model combines mortgage lending with deposit services, allowing it to build relationships with customers beyond a single loan transaction.
The bank was acquired in 2020 by a team of mortgage executives who aimed to create what Lovins describes as a “concierge” financial experience. He said Luminate offers a 3.5% savings rate and seeks to combine deposit products with mortgage solutions to address customers’ broader financial needs.
The strategy is designed to strengthen customer relationships and encourage borrowers to use multiple services offered by the bank.
Financial Planners and Realtors Become Important Referral Partners
Luminate is investing in educating financial planners, Realtors and loan officers about reverse mortgage products.
Lovins said the bank sees opportunities among retirees who have accumulated significant home equity but face financial pressure, including rising property taxes and limited income. The lender is also targeting affluent older homeowners who may benefit from combining reverse mortgage products with other banking services.
The bank has brought in the SimpleReverse team, including Dan Barksdale and Bob Garczewski, to strengthen its reverse lending capabilities. Lovins said the team’s experience is helping the bank train loan officers and explain the products to potential borrowers.
Proprietary Products Expand the Bank’s Lending Options
Alongside federally insured HECM loans, Luminate offers proprietary reverse mortgage products. The bank also provides other mortgage and banking services, including construction lending and non-qualified mortgage products.
Lovins said the bank’s ability to offer a wider range of products helps it serve customers with different financial requirements. He believes loan officers need to understand specialised lending options as the traditional mortgage market faces pressure.
For older homeowners, the availability of different products can broaden financing choices. However, eligibility, costs and long-term implications vary, making individual financial assessment important.
Luminate Targets Selective Acquisitions for Further Expansion
Luminate is also pursuing acquisitions to expand its mortgage business. In August 2026, it acquired selected assets from First State Mortgage Services, a family-owned lender with a long-tenured loan officer team and a strong presence in Bloomington, Illinois.
Lovins said the bank is evaluating further acquisition opportunities but is selective about the businesses it pursues. Its preferred targets are independent mortgage banks with production volumes of approximately $600 million to $2 billion, particularly in the Southeast, Midwest and potentially the Northwest.
He said Luminate receives multiple acquisition opportunities but prioritises cultural fit, shared values and the business segment. The bank anticipates evaluating additional opportunities over the next 12 months.
Customer Data and Retention Drive the Long-Term Plan
Luminate is placing greater emphasis on customer data and retention as part of its broader strategy. The bank is developing a financial wellness dashboard that will allow loan officers to understand customers’ financial positions and identify opportunities to provide relevant assistance.
Lovins said the bank aims to strengthen relationships through deposit accounts, payment cards and closing-cost benefits. He also cited research from STRATMOR Group indicating that customers who bank with their lender may be three times more likely to return for a future transaction.
The bank’s servicing portfolio is approximately $600 million, according to Lovins. While servicing remains part of its strategy, the lender is also focused on building direct banking relationships with customers.
What Luminate’s Strategy Means for the Reverse Mortgage Market
Luminate’s growth highlights how some mortgage lenders are using a combination of specialised products, banking services and acquisitions to expand their businesses. Its focus on financial planners and Realtors also reflects an effort to reach older homeowners through established advisory relationships.
For the reverse mortgage sector, the bank’s performance offers an example of how lenders are seeking to differentiate themselves beyond loan pricing. Whether the strategy can sustain growth will depend on customer demand, acquisition opportunities and the lender’s ability to retain borrowers over time.