First American Corporation announced it has developed a new reverse mortgage tool to help servicers identify candidates who may be eligible for a HECM. The tool provides servicers with a score that examines a broad range of homeowner and property data obtained from First American’s data repository, to determine whether a HECM can be used as one of it loss mitigation workout options.
According to the press release, the evaluation also considers factors like living trusts, bankruptcy filings and powers of attorney. The servicer will then receive a report that includes an estimated principal limit after paying off any current liens, servicing fees, origination fees, mortgage insurance and closing costs.
“Last year, 648,000 Americans age 50 and older fell behind on their mortgage payments, and nearly 50,000 went into foreclosure, according to the American Association of Retired People (AARP),” said Randy Gilster, of First American’s Outsourcing and Technology Solutions business line. “Homeowners who are 62 years or older and who have equity in their homes can often qualify for a federally insured reverse mortgage, without regard to their credit score. Our new score helps lenders identify the best candidates for these loans and gives default managers new options to help senior homeowners.”