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MISMO seeks standards to lower tech friction in proprietary reverse mortgages
Proprietary and portfolio reverse mortgages account for about 50% of U.S. reverse originations, including second-lien options, according to George Morales.
HousingWire spoke with George Morales, chief revenue officer of B.E. Home Finance and chair of the Mortgage Industry Standards Maintenance Organization's Reverse Mortgage Development Workgroup, about efforts to standardize reverse mortgage data through MISMO guidelines.
Morales said proprietary and portfolio reverse mortgages are roughly half of U.S. reverse originations, and he noted the work targets lender technology “friction” across the origination, secondary market, and servicing channels.
He added that standardization is intended to make it easier for lenders and brokers to enter and scale in the reverse mortgage space as the industry expands beyond traditional Home Equity Conversion Mortgages.
Morales also linked broader lender interest to the desire for more loans to close and fund, citing investments in or the creation of reverse mortgage teams at forward mortgage companies as well as a gradual approach that can start with brokering or partnerships before expanding further.