Mortgage Coach and ReverseVision introduced an online program that allows loan originators to give consumers a comparison of how reverse mortgages perform against traditional mortgages over the lifetime of the loan.
Dubbed Reverse TCA, the integrated presentation will enable all loan officers to educate consumers with borrowing terms for reverse mortgages and features such as flexible disbursement options in comparison to traditional mortgages, Mortgage Coach, a fintech focused on attracting and retaining mortgage borrowers, said in a news release.
“There was no easy, simple way for a loan officer to lay out a reverse analysis to a consumer,” said Dave Savage, CEO of Mortgage Coach. “Reverse TCA is a simple link people can click from their smartphone. A family for the first time could look at a typical mortgage versus a reverse mortgage side-by-side in a single presentation.”
Reverse mortgages, eligible for seniors aged 62 and over with substantial home equity, are few viable options for retirees who need cash flow. Instead of borrowing money from a bank to make monthly mortgage payments, homeowners can borrow money against their equity. The loan is paid to borrowers in a lump sum or line of credit and repaid when the homeowner dies or sells the property.
Home Equity Conversion Mortgage endorsements rose by more than 26% to 6,510 loans in March, marking the highest volume level of 7,306 units since the same period in 2011, according to Reverse Market Insight.
Mortgage Coach and ReverseVision, a reverse mortgage software solutions and loan origination system provider, aim to tap into a niche but growing demographic of eligible consumers who collectively hold more than $10 trillion in home equity.
“The big opportunity here is the aging demographic,” said Savage. “The boomers are a massive population and there’s going to be a record number of families that want to look at a reverse mortgage.”
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