LOS ANGELES — The First American Corp. today rolled out a credit score aimed at reverse mortgages. The company says the data-based numerical value can help servicers measure the likelihood that struggling senior borrowers can avoid foreclosure on their current loans by qualifying for government-insured home equity conversion mortgages.
The loan-level score examines a broad range of homeowner and property data. The score is generated using several bits of data including the number of borrowers on the loan and their ages, property information, appraised values, outstanding mortgages and liens and other factors that tend to complicate reverse mortgages such as living trusts, bankruptcy filings and powers of attorney.
The score generated predicts the likelihood of the loan being eligible for a HECM reverse mortgage. The servicer can then determine whether to offer a HECM loan as one of its loss mitigation workout options.
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"Our new score helps lenders identify the best candidates for these loans and gives default managers new options to help senior homeowners," said Randy Gilster, of First American's Outsourcing and Technology Solutions business line
The new scoring system was announced today at the National Reverse Mortgage Lenders Association's annual meeting in Los Angeles.
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