Last April, Erik Morin returned to the world of reverse mortgage valuations by joining Appraisal & Valuation Atlas virtual management system. Founded by Moran landmark network In 2007, the company quickly became a key player in the valuation of reverse mortgages before being category valuation 2018.
After leaving the company, he returned to the field in 2023. house lineThe Reverse Mortgage Daily (RMD) discusses the issues businesses are dealing with now and how valuations in the reverse mortgage space are evolving with business realities and the changing Appraisal Management Company (AMC) landscape.
integration and impact
Morin said the industry feels like it’s in a similar position compared to mid-2023, especially when it comes to consolidation.
“Consolidation in the AMC space continues,” he said. “The wider appraisal industry itself is preparing for new appraisal forms, expected to be launched next year. The development of these forms is less a form-filling process and more a method of smart data collection.
He said some of the changes in this area could change what assessments look like and how new data is used in the process.
“This will probably happen next fall,” he explained. “My main focus is now, which is building Atlas.”
In terms of how the reverse mortgage industry has been impacted, Morin explained that while some of the major players have changed, the valuation space itself and its reverse interactions have remained fairly stable.
“We were able to get back up and running because we didn’t have to make any major learning curves or adjustments,” he said. “Specifically, in the reverse mortgage space, we are seeing a return to the need to improve the borrower experience. This need was demonstrated during the year as we engaged with more lenders and brokers interactive.
Borrower experience
Some lenders and brokers active in the space may cite the need to “improve the borrower experience,” but they may not necessarily know how to implement such an idea in terms of valuations. Morin said it was his and Atlas’s responsibility to understand the situation.
“The way we manage the evaluation process is different,” he said. “We try to communicate that not all AMCs are created equal. Our process is significantly more focused on the borrower experience, which means we engage with borrowers more proactively than most AMCs.
Similar to how reverse mortgage originators care more about their customers than their forward mortgage counterparts, Atlas aims to provide similar services, Morin said.
“Things like turnaround time are not just a data point, but making sure we get borrowers across the finish line as easily as possible and making sure they’re satisfied along the way, that’s our business model,” he said.
Morin and Atlas also believe that prioritizing the borrower’s interests and balancing that with the speed with which the appraisal is completed helps everyone involved in the transaction.
“We understand lenders that there is a risk that the loan will not close before the loan closes,” he said. “As part of the team, our job is to get borrowers appraised as quickly as possible while preserving their interests. We have an impact on that.
open arms
When asked if it was challenging to go from being absent from the reverse mortgage valuation world to actively participating in it again, Morin said the experience has been satisfying in terms of generating interest from potential partners.
“The most rewarding part of my career has been coming back to the field and being welcomed back into the business by our former customers,” Morin said. “These are trusted relationships that I have built over more than a decade in the industry. When many lenders were reducing the number of asset managers on their lists due to demand for volume, we came along and they completely pivoted.
Morin said the former partners may have reduced the number of vendors they did business with and instead prioritized partnerships with Atlas, largely due to previous long-term relationships.
“At that time, on paper, we were only approved in a handful of states, and even in 2023 we didn’t have a national AMC when we started,” he said. “Today, we continue to add more states, but Initially, the compliance team had to approve an AMC licensed in only five states with limited financial and work history. On paper, this didn’t make sense, but it was their relationship and trust in us. [that carried it forward]”.
That trust has been built, Morin added. Atlas is now approved by “most” wholesale reverse mortgage lenders, including those for proprietary reverse mortgages designed for high-value homes.
“They trust us to do high-value valuations and coordinate multiple reports in this case,” he said. “Our lead appraiser previously held this role at AAG, which gave him a strong background in inverse and proprietary products. Has a lot of experience,” he said.
