National Title Company Breaks into the Reverse Market
June 13th, 2011 | by Alyssa Gerace Published in News, Reverse Mortgage | 4 Comments
There’s a new reverse mortgage title company in town. America’s Reverse Title, based in Clearwater, Florida and launched in 2010, sees the reverse mortgage market as poised for growth, and says its national title experience will lend itself to expansion in the reverse market.
America’s Reverse Title, or “ART,” is one of several companies housed under the National Title Network corporation, which primarily includes refinancing as well as both forward and reverse mortgage title divisions. Vice President of Sales Chris Beard says founders William Baumgart and Paula Pautauros entered the reverse title industry at a strategic time, especially with the slowdown of the refinancing market.
“With reverse mortgages, there’s less fallout on the purchase side. Once the counseling is started, [the loan] usually goes through, and on the title side as well. Plus, the senior market is going to be growing in the next 15-20 years, and we’re going to see a continued growth,” said Beard. ”I think what differentiates us is our long term title experience in the industry, reverse-trained closers, flat service fees, nationwide coverage and commitment to build strong relationships with our reverse producers.”
Baumgart and Pautauros are the former founder/CEO and senior vice president, respectively, of TransContinental Title Company, which was sold to First American Corporation in 2006.
National Title Network already works with some large lenders, including TD Bank and Mortgage Investors, and now ART is pursuing Wells Fargo reverse producers, Beard says. ART’s services include providing property reports, title searches, title insurance, deed recording, escrow agency and all other services required to close mortgages, and the company expects the majority of the its closings will be refinances in which borrowers obtain a reverse mortgage loan. ART can close in all 50 states as well as the Dominican Republic.
Written by Alyssa Gerace
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With so few HECMs for Purchase what is the significance of this statement: "With reverse mortgages, there’s less fallout on the purchase side?" Compared to what? That response always comes up when the issue of high costs arise. It is at least as appropriate here.
Then comes: "Once the counseling is started, [the loan] usually goes through...." Where is this stuff coming from? James Veale has stated that using a four month lag principle HUD stats show that in the last 39 months only 74% of all apps which received FHA case numbers (that means AFTER counseling) ever got endorsed. When I was in school that was a C at best. Would they say the same if the rate was only 50%? Worse, recently I calculated that the conversion rate is dropping slightly down closer to 73%.
So how is that a great pull through or conversion rate? These folks seem to be novices in the reverse world. Their overenthusiastic statements seem to bear that out.
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Huh? HECM drop out rates are lower than the drop out rate for forward mortgages --- following counseling? I did not know those borrowers took counseling. It seems you have stumbled into a new truth. That is exactly what I meant by compared to what.
Not long ago RMD ran a survey on the percentage of borrowers who do not close a HECM following counseling. Well over 50% of respondents believed it was 20% or less. The truth is it is 27% following FHA Case Number assignment alone. The only stats I have are those related to FHA Case Number assignments. It does not include counselees who never reach the assignment stage.
Facts are facts. It is not negativity. Interpreting our endorsement rate as a C is not negative. It seems you are calling the forward drop out rate as worse. But again, compared to what?
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