Leading reverse mortgage lending solutions provider ReverseVision added 733 mortgage brokers to its RV Exchange (RVX) loan origination software between July 2013 and June 2014, including 379 brokers added in the first half of 2014. RVX is the leading independent reverse loan origination system and lending system of record for the majority of reverse lenders.
“RV Exchange is the lending system of record for a majority of reverse lenders, so we monitor its privacy-protected aggregate data as a useful indicator for industry trends,” says Rob Katz, ReverseVision executive vice president. “Where these trends and data-backed insights are useful, we are pleased to share them with the industry in the interest of continuous improvement.”
According to Katz, for example, although first half 2014 applications (approx. 32,000) through RV Exchange were 22 percent lower than in 2013 (approx. 41,000), loan closings for the same periods (approx. 14,000 and 18,500, respectively), were at a similar rate between 43 percent and 45 percent.
“This is useful information for lenders and investors, since it shows that operationally and programmatically, the reverse mortgage is a stable, low-risk product in origination,” said Katz. “At the same time, this kind of data help us better understand where the industry needs to focus its resources, which for now clearly is in the areas of education and marketing.”
“With so many new brokers entering the industry, rapid and efficient staff education and certification are key to compliance, risk control and ultimately lender success,” Katz added.
“Reverse mortgages are an important facet of the homeownership and mortgage finance continuum,” he said. “Mortgage lenders with an understanding of why this is true will be more competitive as the Baby Boomer demographic plans its financial future.”