Historically, reverse mortgages require a long, consultative sale. Originating these loans often calls for numerous meetings, lots of paperwork shuffling and a good bit of hand-holding. But one Colorado-based startup is aiming to change this.
Inspired by digital innovation in the forward lending space, MortgageRewind is offering seniors the ability to obtain a reverse mortgage from start to finish online. The lender announced its launch yesterday in Colorado with plans for multi-state expansion soon.
“When you look at the forward side with Quicken Loans and the Rocket Mortgage product, you can see there really isn’t that type of solution and that type of service in the reverse space,” CEO Jered Klima told HousingWire. “We saw it as an opportunity to fill that void.”
Klima is bringing his skills as a highly successful digital advertising exec to the table. The owner of eClickonomy, a boutique Internet marketing agency, Klima was also a founding partner of SnapCap, a company that connects small business owners seeking growth capital with lenders that was acquired by LendingTree last year.
Klima said he was on the lookout for his next venture when he came across reverse mortgages and recognized the potential for a growing need and a market that was underserved.
“There are a lot of Baby Boomers out there who are tech savvy,” Klima said. “People are already out there on the Internet looking at this product, so I think seniors are up to speed and ready for this.”
He said MortgageRewind will launch a digital marketing campaign that includes online tutorials and videos to enhance education about reverses.
But while MortgageRewind’s application process is 100% digital, Klima said he understands that some clients will still prefer a face-to-face experience. MortgageRewind, which has a team of 10, will make its loan officers available for those who would prefer to meet in person.
Klima also said that while MortgageRewind will be reverse-focused, it will also offer traditional loan products.
“We’re cognizant that reverse is something people 62 or older are going to hear about, but it’s not necessarily always the best option,” Klima said. “We want to be able to offer our customers the right solution for them.”
For Klima, the goal is to advance education about reverse mortgages and make it easier for seniors to get them.
“We want to try to demystify the reverse mortgage for seniors. With more tech savvy Baby Boomers capable of getting online and educating themselves, I think you’re naturally going to have a situation where more and more people are going to understand a reverse mortgage, and that would allow them to get a reverse mortgage without having to go through all the phone calls.”