First American Offers Reverse Mortgage Score

The First American Corp., Santa Ana, Calif., said it has introduced what it believes is the first "reverse mortgage score," a data-based numerical value designed to help servicers quantify the likelihood that struggling senior borrowers can avoid foreclosure on their current loans by qualifying for government-insured Home Equity Conversion Mortgages. The score, introduced at the National Reverse Mortgage Lenders Association conference in Los Angeles, examines factors specific to the government reverse mortgage program such as the new $417,000 HECM national loan limit, the number of borrowers on the loan and their ages, living trusts and powers of attorney. It also examines homeowner and property information from First American's data repository. The combined examination of these factors results in a weighted average score ranging from one to five in which "one" indicates the borrower is "least likely" to qualify for a HECM and "five" indicates the loan is "most viable," an external spokesman said. The spokesman also said score may be helpful to originators as well as servicers.