George Morales, Chief Revenue Officer of B.E. Home Finance and chair of the Mortgage Industry Standards Maintenance Organization (MISMO)’s Reverse Mortgage Development Workgroup, discussed the expanding reverse mortgage market and the importance of standardization. He noted that proprietary reverse mortgages, which have been around for at least five years, now represent about 50% of U.S. origination volume.
Morales explained that these products, including second-lien options, allow older homeowners to access home equity while retaining their existing first mortgages with favorable interest rates. This adaptability is crucial as the industry seeks to become more scalable and comfortable for consumers and lenders.
In his role at MISMO, Morales leads a group of industry experts working to integrate reverse mortgage terminology and data elements into the MISMO Dictionary. The group has already established origination data standards and is approximately 75% complete with standards for the secondary market. The next phase will focus on servicing-related data.
The overarching goal of MISMO's standardization efforts is to lower the barrier to entry for lenders and brokers looking to expand into the reverse mortgage space, ensuring that technology does not hinder market growth.
