Sept-Oct2020 Issue

In Reverse Servicing, Sales and Structure Finding Best Course as Path Keeps Shifting By Thomas A. Barstow A LOT OF work goes into getting a loan to closing, from the initial contact with a client to showing them why a reverse mortgage may or may not work for them to going through the counseling and appraisal process—and all of the paperwork along the way. But some of the unsung heroes of the industry include the servicing companies that work with clients after the closing and through the life of the loan, including explaining to jittery customers what the impact of an event, such as COVID-19, will have on them and their financial security. When we started the initial planning for this edi- tion of Reverse Mortgage that partially focuses on the ser- vicing sector, COVID-19 wasn’t on anyone’s mind. We shifted our focus as the pandemic took hold and shook every business nationwide. “Making money in servicing is very tight, so servic- ing companies will look to save money as office leases expire and come up for renewal,” Kevin Gherardi, pres- ident of Reverse Technology Group LLC of Palm Beach Gardens, FL, tells Mark Olshaker in the cover story ( Loan Servicing During COVID-19 , p. 18). “Many com- panies will have all employees who can work at home. I’m considering reducing my space by half and maybe bringing in everyone once or twice a month to a central conference room.” In another interview, Shawna James tells Darryl Hicks, NRMLA vice president, communications, how the servic- ing sector works ( Talking Heads , p. 12). James, a director at Mortgage Assets Management LLC, Austin, TX, notes that servicing loans—even in good times—can be tough, espe- cially when it comes to getting clear guidance. “Reverse mortgages are the most difficult loans to ser- vice because of all the requirements imposed by HUD that have servicers tripping over themselves trying to maintain compliance,” she says. “There have also been numerous guidelines imposed that have created considerable losses to investors over the years due to unclear guidance or delays that push loans to miss timelines or exceed the maximum claim amount.” COVID-19 has complicated matters, James adds, because of challenges in getting the necessary documents from third parties. So far, though, the flow of applications has been steady, and the back-end issues have been minimal because of the virus, although that could change, Leslie Flynne, senior vice president for loan servicing at Reverse Mortgage Solutions Inc., Houston, TX, tells Olshaker in the cover story. “I’m shocked at the lack of requests for forbearance,” she says. “But remember, we’re in a foreclosure moratorium.” In Reverse continued on page 4 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2020 3