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