scalable vector logo of ReverseVision with tagline rethink, remortgage, retire

CMBA ReverseVision Member Spotlight

Founded in 2007, ReverseVision®, Inc. is the nation’s leading Home Equity Conversion Mortgage (HECM) and private reverse mortgage sales and origination technology platform, supporting all HMBS Investors. The company’s comprehensive product suite is built to expand lenders’ unique technological footprint resulting in more tools, opportunities, loans processed, and partnerships. ReverseVision’s technology enables originators to qualify borrowers, easily compare HECM loans to traditional loans directly from their software of choice and connect all users across the entire HECM lending lifecycle. Over 5,000 users and 50 of the top 75 Independent Mortgage Bankers leverage ReverseVision products to assist their clients 62+ in finding the loan that is right for them. A five-time HousingWire TECH100™ company, ReverseVision is a privately held company based in San Diego, California.   Contact info:
Joe Langner
CEO
Phone: (858) 433-4953
jlangner@reversevision.com

Q1 Your team just attended the California MBA’s Western Secondary Market Conference in Dana Point August 24-26. Were there any key takeaways that you feel will affect ReverseVision and Reverse Mortgages in general moving into Q4 and 2022?

First off, this was a very well-attended conference that provided significant value to participants, and as we head further into a changing lending landscape, key conference takeaways will become increasingly important. Throughout the show, buzzing was talk among lenders about rising rates, shrinking margins, product diversification, and what 2022 will look like.

Lenders know that post an unprecedented re-fi boom, they need to closely evaluate adding different products and began focusing on new markets—whether that’s shifting to a purchase market, incorporating construction or VA loans into their product offerings, or implementing various other strategies. One market that tends to get overlooked by lenders is the untapped profit potential of Home Equity Conversion Mortgage (HECM) loans, aka Reverse Mortgages. Not only are these loans an excellent way to increase a lender’s top line, but for certain borrower profiles, it’s also one of the best solutions to create more cash flow for consumers.

And with more than 50 independent mortgage banks already leveraging the power of ReverseVision’s platform, we know what works and—more importantly—what doesn’t to help brokers and lenders succeed in reverse lending. When you compare HECMs to traditional loans, the advantages are a win-win for lenders and borrowers alike.

It’s important to consider where borrowers are at in their lives to find the best possible loan for their specific situations. According to Federal Reserve data, 62% of baby boomers are in debt and don’t have the financial means for retirement. Simultaneously, seniors have 9.2 trillion in home equity that could be turned into lines of credit that generally lasts well into their 90s. If you’re serious about growing your business and increasing cash flow, HECMs could be an excellent add-on product in a high-interest rate, purchase market—and also the solution that best serves your senior borrower.

Q2 ReverseVision is a Revere Mortgage software company, but you seem very dedicated and invested in educating the traditional mortgage industry about HECM loans. Why?
The growing senior population, and a general wave of concern around retirement preparation, has left a large portion of the country searching for non-traditional sources of wealth to bolster their financial security. However, traditional 30-year loans, or HELOCs, just don’t make sense for senior borrowers. According to the US Census, the senior population is set to double by 2060 and a staggering 40% of them lack the sufficient resources to maintain their standard of living in retirement. Smart, forward-thinking savvy lenders will not only financially benefit from assisting this underserved market, but they will also be helping seniors maintain financial security as they continue to age throughout their retirement years. We know that 90% of older adults want to age in place. Reverse Mortgages offer a dignified and sensible solution that allows borrowers to take advantage of the hard-earned wealth that is locked up in home equity and offers a stable line of credit that doesn’t require payments or have a deadline.

The bottom line is that a reverse mortgage makes a great deal of sense for the right senior borrower, and lenders can benefit greatly from offering reverse products. As rates continue to increase and profitability erodes, the market will tighten, and it behooves lenders to start looking at penetrating the underserved reverse mortgage space.  

Q3 ReverseVision is known as the leading reverse mortgage lending platform, but there has been talk about the company shifting to Reverse-as-a-Service in 2022. What does that mean for you and for the mortgage industry?
At ReverseVision, we understand all too well how powerful and useful HECM loans can be, yet there remains myths and misconceptions within the mortgage industry about them. The biggest industry challenge is that HECM loans have not been presented alongside traditional loans, currently, lenders cannot create a seamless user experience that connects all users across the entire HECM lifecycle directly from their existing technology stacks. It’s generally siloed in different systems, or not offered at all.

But this industry-wide issue is going to change. ReverseVision has been evaluating multiple growth strategies that, along with favorable macro trends in the industry, will allow us to expand our presence alongside the “forward” loan origination space. We are developing an API strategy that will seamlessly integrate with traditional lenders’ technology systems. This coexistence means any originator will be able to easily compare loans for their senior borrowers and best advise them on the right loan for them.

So, while we are focused on our lending and tech partners being as profitable as possible and expanding their business, we are also deeply connected to ensuring seniors are presented with all their options so they may make the best choice for their specific needs. Our API strategy and alliance partnerships will afford lenders and the industry a newfound and highly efficient, cost-effective path to getting into the reverse lending game, and will afford older borrowers a finically secure lifestyle that also allows them to age in place.