New Entrants to Reverse Mortgage Industry Merge, Appoint New CEO
Mortgage industry sellers Mortgage Coach and Sales Boomerang announced this week that the two companies are set to merge, and the new entity has named tech-focused executive Richard Harris as CEO of the organization. unified.
As of now, the unified company is simply known as “Sales Boomerang and Mortgage Coach,” according to officially released documents announcing the merger. The two companies currently maintain separate websites and social media presences, and Harris’ LinkedIn profile lists his current position as CEO of “Sales Boomerang & Mortgage Coach.”
The merger and the CEO
The merger has been in the works for most of the year, since Philadelphia-based private equity firm LLR Partners strategically invested in the two companies last January. When the investment was announced, it was also clarified that the two companies would “maintain their existing brands and teams”.
Sales Boomerang acts as an automated borrower intelligence and retention system for the mortgage industry, while Mortgage Coach is a platform that allows mortgage lenders to create interactive home loan presentations for potential borrowers. The reverse mortgage ambitions of both companies are relatively recent developments.
“Together, Sales Boomerang and Mortgage Coach will position lenders to reach borrowers with the right information at the right time, empowering borrowers to build wealth through homeownership by helping them select the best mortgage strategy for their unique housing needs,” the merger announcement said.
With his background in technology, Harris envisions synergy between the two companies in the future.
“Sales Boomerang and Mortgage Coach are two impressive, mission-driven organizations that have achieved significant brand equity in the mortgage space through their deep knowledge of the industry and proven ability to deliver substantial value to mortgage lenders and borrowers. “Harris said. “I look forward to bringing organizations together and leveraging my experience with data, analytics and insights to help mortgage lenders better understand their borrowers and deliver personalized service that helps them achieve their goals. home ownership and financial goals.
While the announcement did not specify future reverse mortgage ambitions, Sales Boomerang and Mortgage Coach founders Alex Kutsishin and Dave Savage respectively will retain leadership roles at the newly unified company, according to the announcement.
“Bringing together the best of database monitoring, market intelligence, automation, personalization and education, Sales Boomerang and Mortgage Coach deliver the short- and long-term financial results that lenders need,” Kutsishin said. “We are united in our mission to provide borrowers with the right loan at the right time, and I am confident we will reach new heights under Richard’s leadership.”
“Together, we have the expertise, synergy and platform to put game-changing tools in the hands of our lenders and loan officers,” added Savage.
Boomerang sales and reverse mortgages
Both companies entered the reverse mortgage business very recently with different products. In the case of Sales Boomerang, last February the company launched “Reverse Mortgage Alert”. Like other customer intelligence products offered by the company, it is designed to notify a lender when a borrower in their system would be a “good fit” for a home equity conversion mortgage (HECM) such as administered by the Federal Housing Administration (FHA). ), or an exclusive reverse mortgage with higher loan limits.
The alert can trigger based on different parameters chosen by the lender, such as when a borrower is both eligible at age 62 or retains enough equity in their home to potentially qualify for a loan reverse mortgage. Describing the opportunity in terms familiar to the reverse mortgage industry and considering the record levels of home equity accumulated by seniors, company representatives see the industry as a largely untapped resource.
“For a long time. Many companies have contacted us and [ask if we do] anything for reverse mortgages or other types of products, and the answer was no for a very long time,” Richard Grieser, vice president of marketing at Sales Boomerang told RMD in an interview at the time. . “Now we have this alert, which we just rolled out because a lot of our customers were asking for it. What this alert does is notify the lender just when one of their borrowers in their database might qualify for or benefit from a reverse mortgage.
Grieser also described the educational journey required of company personnel to develop a product focused on the reverse mortgage industry, and how the company would also seek partnerships with active lenders in the space.
Mortgage Coach and its ReverseVision partnership
In April, Mortgage Coach and reverse mortgage origination (LOS) system provider ReverseVision launched an online program allowing loan originators to give consumers a comparison between reverse mortgages and traditional mortgages over the term of the loan.
Describing how the reverse mortgage product – particularly on the HECM side – has undergone a series of notable improvements over the past few years, Mortgage Coach President Joe Puthur described in an interview with RMD the general optimism with which Mortgage Coach considers the reverse mortgage landscape. favorable demographics in the area of the industry.
“Never before has anyone been able to show front and back side-by-side, which is probably the biggest challenge when you have a majority front-initiator workforce that doesn’t even have the ability to ‘introduce the reverse product,’ Puthur said. RMD in an interview. “Now we have solved that. Thus, large lenders can have a bridge between the direct conversation and the reverse introduction with a total cost analysis.
How reverse mortgage deals between the two companies might now interact post-merger is currently unclear, but RMD will report on any further developments as they occur.