Searching out the term “reverse mortgage” across your favorite internet search engine often brings up a whole host of tools that a reverse mortgage professional might be able to use in their business, particularly if they’re looking for quick access to loan calculations. Other large lenders also often have their own software and modeling tools for professionals to use, but the abundance of tools can sometimes come with a sacrifice of time.
Now, one of the reverse mortgage industry’s most well-known product educators has taken his own approach to provide reverse mortgage industry players with easy access to relevant information they can employ over the course of their business, and he’s using a mobile application (or “app”) to do it. RapidReverse, created in collaboration between Dan Hultquist and Georgia-based developer Apptensity, offers reverse mortgage professionals detailed loan information that can be provided to clients or referral partners.
To discuss the new offering, RMD sat down with Hultquist.
The need for the app, and why mobile makes sense
When asked about the need that exists for a tool like this in the reverse mortgage industry, Hultquist explained that he’s observed many reverse mortgage professionals at different organizations using disparate tools when it would make more sense to offer something more consolidated. Not only is that true of others, but it’s also true for himself.
“For several years, I’ve used multiple spreadsheets to model everything from basic reverse mortgage calculations to advanced strategic retirement plans. However, reverse mortgage sales professionals don’t want to spend several minutes entering data into a laptop to find out if a borrower might qualify,” Hultquist tells RMD. “They want to see principal limits and net principal limits within seconds. Additionally, the report functionality paints a nice picture for the homeowner, real estate professional, or advisor.”
In answering this need, the RapidReverse app can function as a reverse mortgage calculator, and provides the most relevant information for professionals, borrowers, real estate agents or other referral partners when aiming to determine the value that can be created by engaging with a reverse mortgage loan.
“You can enter the critical information in less than 10 seconds,” Hultquist says. “If you want more information, click the report button for a 10-year amortization and a detailed explanation of the solution.”
When asked about why it makes sense for a tool like this to be packaged in a mobile app, Hultquist describes the prevalence of the smartphone ecosystem as well as major advancements made in the broader marketplace of mobile apps as two guiding reasons.
“Mobile applications are now faster, easier to use, and more aesthetically appealing than websites,” Hultquist explains of his reasoning. “Smartphone and tablet usage have exploded in the last decade, and iOS and Android applications own nearly 100% market share. Financial services professionals rely on these devices and applications now more than ever, and it is not slowing down.”
iOS is the mobile operating system used by Apple’s iPhone and iPad devices, while Android is a mobile operating system owned by Google and which is largely available on the majority of smart devices which are not manufactured by Apple. According to data from Statista from Q1 2021, Apple’s iPhone maintained its place as the predominant device with a 55% market share of the global smartphone landscape.
In terms of smartphone use, those devices have become increasingly important — in some cases even critical — to the operations of any business professional, and that is certainly true of any professional offering financial services. This can have a real impact for reverse mortgage professionals who are aiming to increase their networks of referral partners in adjacent industries, Hultquist says.
“If we want to maximize our efforts with lead providers, we need a tool built for the devices they use most frequently,” he explains.
Setting itself apart from other reverse mortgage apps
In terms of how this new offering compares with other reverse mortgage-relevant mobile apps, Hultquist explains that the creation of RapidReverse aimed to focus on speed and simplicity. It does not require what Hultquist calls “unnecessary personal information,” and determining a prospective reverse mortgage’s principal limit is based on three factors: the home’s value, age of the youngest borrower (or eligible non-borrowing spouse) and the expected interest rate.
Home Equity Conversion Mortgage (HECM) proceeds are then estimated based on those pieces of information, and a net principal limit can also be calculated when a mortgage payoff is added to the data. There is another feature that Hultquist feels is unique to this offering, as well.
“The second feature that makes it unique is the ability to view a purchase option instead of a refinance,” he says. “With this feature, you can see the expected homebuyer investment for a HECM for Purchase (H4P).”
When asked about what the future could hold for this offering, Hultquist says that keeping up with any regulatory changes is key, such as the 2022 lending limit. That has been incorporated into the app’s latest version. Customization is also on the table, he says.
“We plan to create custom versions of the app. This initial version was designed to be lender-neutral,” Hultquist says. In fact, RapidReverse doesn’t collect any information about the borrower or the user; it’s simply a tool used to enhance reverse mortgage education and sales. However, we envision offering branded versions of the mobile app with expanded features to a limited number of reverse mortgage providers.”
Find the app’s dedicated page on Hultquist’s website, Understanding Reverse.