Reverse Mortgage Solutions recently announced that it has become the largest privately held sub servicer of reverse mortgages, boarding in excess of 22,000 loans to date.  At its founding, the Spring, Texas based company was financed by JAM Equity Partners, LLC and its affiliates with a $7 million investment.

“We have enjoyed astronomical growth – probably the fastest ever for a reverse mortgage servicer and sub-servicer,” said Marc Helm, chief operating officer of RMS, who is part of a highly experienced leadership team that includes Robert Yeary, chief executive officer; Ken Austin, president; and Kevin Gherardi, chief information officer.

Last year, Standard & Poor’s Ratings Services, in its first rating of RMS, gave the company one of its highest rankings for a mortgage servicing operation, citing a strong management team, advanced technology (RM Navigator^® servicing module) and financial stability.

In addition to its servicing capabilities, RMS also offers a web based front end loan origination system (RM Compass) and a secondary market structure which has already provided servicing, sub-servicing and master servicing on over 40 percent of the Ginnie Mae HMBS reverse mortgage securities that have been issued to date.  “RMS is the only company that has the in-house technology to be an issuer, servicer, sub-servicer, participation agent and master servicer for HMBS,” said Yeary,

Reverse mortgage originations increased by 6.4 percent in 2008, over the previous year, according to HUD, with expectations of further growth in 2009, driven by higher loan limits, the ability to use the loan for new home purchases and co-op eligibility (pending legislation would raise the limit to $625,000). “The experience we bring to the table in the form of technological expertise and previous management of high-volume operations has propelled us to phenomenal growth in our first 18 months,” notes Gherardi, who says “the apparatus is there for continued expansion. We have built for deployment the necessary infrastructure to manage enterprise reverse mortgage lending at a much higher capacity.”

Gherardi pointed to advanced Web operations, workflow and unification of imaging as examples of this deeper infrastructure capacity, citing as one example the ability to integrate third-party service providers like doc prep, credit, title and appraisal suppliers that did not exist before. “We’ve integrated imaging to make the environment paperless. Now, everything is Web application-based,” said Gherardi, noting that individual components in the reverse mortgage process are scaled according to an individual company’s size and growth potential.

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