Nationwide Equities Corp. has launched ReverseReach, a new tool designed to help mortgage brokers identify reverse mortgage opportunities within their existing customer databases. The program aims to simplify the process for originators who may not specialize in reverse products. This initiative is part of the company’s broader strategy to help brokers tap into untapped business opportunities, as highlighted by CEO Paul Lamparillo, who emphasized the potential for brokers to leverage their existing relationships with homeowners who may now qualify for reverse mortgage products.
According to the company, ReverseReach allows mortgage professionals to input a borrower’s financial and property details to quickly assess the viability of a reverse mortgage. It serves as a preliminary screening tool rather than a full underwriting solution. This scenario runner enables originators to input basic borrower and property data, providing a quick assessment of whether a reverse mortgage is a viable option.
Targeting Older Homeowners with Equity
The tool focuses on homeowners aged 55 and older, including those with limited income or restricted access to traditional refinance options. It aims to improve monthly cash flow by eliminating required principal and interest payments. This approach is particularly beneficial for borrowers facing financial stress who may not fit conventional underwriting criteria. By targeting this demographic, Nationwide Equities is addressing a growing demand for aging-in-place solutions among equity-rich seniors.
Nationwide Equities has paired ReverseReach with a support team of Direct Endorsement (DE) underwriters who provide guidance on eligibility, loan structuring, and complex borrower situations. This combination of technology and human expertise is intended to lower barriers to entry for brokers in the reverse mortgage space. President Philip Parziale emphasized the importance of direct access to underwriters, noting that the ability to speak with a live person enhances the overall experience and ensures brokers can confidently handle complex scenarios.
Addressing Industry Challenges
The launch comes as the forward mortgage market faces pressure from higher rates and tighter affordability. Many brokers are seeking to diversify into reverse mortgages or home equity products to stabilize their production. However, the reverse mortgage space has historically been challenging due to product complexity and reputation concerns. Nationwide Equities’ pivot to proprietary reverse mortgage production, including the launch of its private-label reverse mortgage, EquityPower, in 2020, reflects broader industry trends. EquityPower was designed to offer higher loan proceeds than Home Equity Conversion Mortgage (HECM) products, providing an alternative for borrowers seeking greater flexibility.
By integrating with existing loan origination systems, ReverseReach offers a streamlined workflow for brokers to screen past clients. This approach focuses on reengaging existing borrowers rather than acquiring new leads through paid marketing. Modex data shows that Nationwide Equities has originated 111 reverse mortgages for $216 million in volume over the past 12 months, while Reverse Market Insight data indicates the company has endorsed 26 HECMs through the first nine months of this year, highlighting its growing presence in the market.
Potential Applications for Brokers
Brokers can use ReverseReach to review their closed-loan databases for borrowers who now meet age and equity requirements. They can also examine files of clients who previously struggled with debt-to-income ratios during forward refinance attempts. This tool enables brokers to identify and assist clients who may have been overlooked in the past due to stringent underwriting criteria.
The tool also enables brokers to collaborate with financial advisers or real estate agents to identify older homeowners in need of payment relief or cash-flow support. By partnering with professionals in related fields, brokers can expand their reach and provide full financial solutions to their clients.
