Reverse mortgage software firm ReverseVision this week announced expanded services aimed at the burgeoning proprietary market.
Under the San Diego-based ReverseVision’s new proprietary outreach initiative, lenders can submit a packet of information about their individual private loans. Within eight to 10 weeks, that product will be fully incorporated into the company’s RV Exchange loan origination software, with lenders able to adjust certain factors — such as margins — independently on an ongoing basis.
The moves come at the tail end of a summer dominated by the introduction of new proprietary loan products, prompted in part by the Department of Housing and Urban Development’s recent move to lower principal limit factors for the government-backed Home Equity Conversion Mortgage program. So far, Longbridge Financial and Reverse Mortgage Funding have introduced their own private loans, with Finance of America Reverse rolling out new options for its existing HomeSafe loans.
Industry leader American Advisors Group also began offering FAR’s HomeSafe products on a correspondent basis this spring, using the “AAG Advantage” brand through its retail channels.
“Pioneering proprietary products have the potential to elevate reverse mortgages beyond the complexities, caps, and limitations of HUD’s HECM program,” Jeff Birdsell, vice president of professional services at ReverseVision, said in a statement announcing the initiative. “They’ll also create some stability in the industry where sudden government changes to the HECM program have sent reverse lenders into emergency response mode. These new products could also drive loan production by competing more directly with traditional loans and serving a broader range of customer needs.”
ReverseVision’s comments echo the reasons companies have given for betting on proprietary in the current marketplace. RMF, for instance, has positioned its Equity Edge products as gap-fillers and not necessarily traditional “jumbo” mortgages aimed at providing the greatest proceeds possible. Potential uses for the Equity Edge, according to the company, include paying down forward mortgages or securing loans on condos not approved by the Federal Housing Administration for HECM loans.
Written by Alex Spanko