First American rolls out reverse-mortgage scoring solution.
Santa Ana, California-based First American Corporation announced that it has developed a new reverse-mortgage score to help servicers identify candidates for a government-insured Home Equity Conversion Mortgage (HECM) who might otherwise face foreclosure.
The new loan-level score examines a broad range of homeowner and property data obtained from First American's extensive data repository, said Randy Gilster, director of First American's outsourcing and technology solutions business line.
"Homeowners who are 62 years or older and who have equity in their homes can often qualify for a federally insured reverse mortgage, without regard to their credit score," said Gilster. "Our new score helps lenders identify the best candidates for these loans and gives default managers new options to help senior homeowners."
The evaluation also considers factors that tend to complicate reverse mortgages, such as living trusts, bankruptcy filings and powers of attorney. The servicer receives a report that includes an estimated principal limit after paying off current liens, servicing fees, originations fees, mortgage insurance and estimated closing costs, explained Gilster.
Using the score, the servicer can then determine whether to offer a HECM loan as one of its loss-mitigation workout options. The score considers all HECM loan options and provides alternative choices to traditional loan modification, added Gilster.
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|Title Annotation:||TechNewz; First American Corp. (Santa Ana, California)|
|Comment:||First American rolls out reverse-mortgage scoring solution.(TechNewz)(First American Corp. (Santa Ana, California))|
|Article Type:||Brief article|
|Date:||Jan 1, 2009|
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