New Software Allows Reverse Mortgage Lenders to Service Loans

A reverse mortgage technology veteran has launched a new product that will enable lenders to service their own loans via a cloud-based servicing platform.

ReverseQuest launched this week under the leadership of Kevin Gherardi, president of the product’s parent company Reverse Technology Group (RTG) — which also is the owner and operator of the Department of Housing and Urban Development’s Home Equity Reverse Mortgage Information Technology (HERMIT) platform. Gherardi was a co-founder of Reverse Mortgage Solutions before launching RTG in 2016.

A cloud-based solution that took roughly 15 months to develop, ReverseQuest allows lenders to service their own customers’ loans, including functionality to ensure compliance, interface for Home Equity Conversion Mortgage-backed securities (HMBS) issuance, perform accounting tasks including borrower disbursements, and curtailment prevention tools.

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“This prevents servicers from dropping the ball on curtailment events,” Gherardi told RMD in an interview. “Lenders can now service their own customers if they wish and won’t have to subservice their loans as the only option. Existing servicers can also benefit from using a consistent modernized servicing platform that promotes the industry’s best practices and also aligns with HUD HERMIT business rules.”

The technology the first of its kind for reverse mortgages, Gherardi says, although lenders have had access to similar products in the forward market.

ReverseQuest also plans to roll out a self-serve borrower website where borrowers can access their account information — such as line of credit balance, loan balance, and frequently asked questions. Lenders on the platform will also be able to transfer loans seamlessly in the event that servicing rights change hands.

“This is one centralized system,” Gherardi says. “It is the first solution of its kind.”

Written by Elizabeth Ecker

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  • Sounds interesting to me, but I’m wondering … have Lenders been asking for this solution? What would motivate a Lender to Service their own loans? Will a new department need to be created for this purpose?

    To me, Servicing sounds like the ultimate hassle, especially with Reverse Mortgages. I’d hate to be forced to foreclose on somebody thats entered into an agreement with the County to pay their back property taxes. And I’d also have to deal with the whole NBS thing … why would a Lender desire taking on that additional role?

  • This technology will be the first of its kind for the reverse mortgage space. It could be a major break through and replace the sub-servicer in the future.

    Time will tell, this is to new to make any snap judgements on the overall benefits this could Have on our industry?

    John A. Smaldone
    http://www.hanover-financial.com

  • This reminds me of ol’ time cowboy flicks where one gunman with a newer, bigger, and better gun announces to the other at the top of his lungs so that everyone hears him: “This town ain’t big enough for the two of this. Meet me RIGHT HERE at sundown, if you’re man enough.” He then turns his back to the other gunman and struts down the street.

  • We should all welcome advances in technology that make it easier for lenders and sub-servicers to service HECM loans more efficiently and compliantly. In fact, my Christmas wish for this holiday season is that every lender/servicer would service prepayments on HECM ARMs properly. If RQ can guarantee consistency there, then we all win.

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