The Department of Housing and Urban Development (HUD) has chosen Reverse Market Insight to help manage the Home Equity Reverse Mortgage Information Technology (HERMIT) system alongside Mortgage Asset Systems, LLC, a wholly-owned subsidiary of Reverse Mortgage Solutions, Inc.
The HECM Business Service Provider contract awarded to RMI will enable the company, along with MAS, to take the HERMIT system to the next level, while still retaining the existing HERMIT platform, MAS President Kevin Gherardi told Reverse Mortgage Daily.
“This is a huge relief for both HUD and the HECM industry to retain the existing platform,” Gherardi said. “Maintaining the same platform is a big win for the industry as a whole by avoiding the numerous setbacks and risks associated with retraining and servicer integration for HUD and HECM service providers.”
HERMIT is HUD’s system of record for all Home Equity Conversion Mortgages (HECMs) to handle the endorsement of HECM loans, collection of mortgage insurance premiums and processing of HECM claims.
“As a leader of this contract, RMI will ensure that the new HERMIT contract meets the ever evolving needs of the reverse mortgage industry for many years to come,” said RMI President and Co-Founder John Lunde. “MAS has a great foundation. We’re really looking to add to the process rather than recreate the wheel.”
MAS and RMI are currently waiting for HUD to approve the transition plan from the previous HERMIT contract holder to RMI. The companies anticipate the transition to be complete sometime early next year.
Written by Jason Oliva