Earlier this year, MCS, a property services company based in Lewisville, Texas, made headlines with its acquisition of Five Brothers Asset Management Solutions, marking its entry into the reverse mortgage industry. CEO Craig Torrance shared his vision for the move shortly after the acquisition.
Fast forward six months, Torrance and Chad Mosley, the company’s president of mortgage services, attended the National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo in San Diego to connect with industry professionals and gain insights into the reverse mortgage space.
Having gained a clearer understanding of the industry, Torrance and Mosley sat down with HousingWire’s Reverse Mortgage Daily (RMD) to discuss their learnings and insights on the current state and future potential of the reverse mortgage industry.
Chris Clow/RMD: How have things been going in the reverse space since the acquisition of Five Brothers?
Craig Torrance: Transitioning into the reverse mortgage space has been a learning experience for us. While there are differences between forward and reverse mortgages, we have discovered many similarities in the services we provide.
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Our experience has shown that many of the services we offer are applicable to both forward and reverse mortgages. While there are differences in processes and customer interactions, we see the potential for our services to thrive in the reverse space.
Clow: How does that look from your end, Chad?
Chad Mosley: As someone new to the reverse industry, I’ve been impressed by the level of customer focus and communication among reverse servicers. Their dedication to serving senior clientele with tailored processes and communication strategies has been eye-opening.
Supporting this customer-centric approach has been a rewarding experience for us, and we are eager to continue learning and growing in this space.
Clow: How have the differences between forward and reverse been most visible in terms of what your company does?
Torrance: One key distinction we’ve noticed is the higher level of interaction and communication in the reverse space compared to forward mortgages. Reverse servicers prioritize customer engagement and personalized service, creating a unique experience for their clients.
While forward mortgages may be more transactional, reverse mortgages emphasize the human connection between servicers and customers.
Clow: How do those experiences compare based on what you’ve observed?
Torrance: Reverse servicers have built their business around fostering strong relationships with customers through effective communication and personalized service. This customer-centric approach sets the reverse industry apart and creates a more engaging experience for all involved.
From our perspective, we have seen the depth of connection in the reverse space surpass that of forward mortgages, highlighting the importance of human interaction in this industry.
Clow: Do you see reverse business currently punching above its weight in terms of how it can contribute to overall company revenue and profitability? Or are you in this to get in on the ground floor, considering the trend of demographics?
Mosley: We view the reverse industry as a growth engine for our company. The excitement and potential for growth in the industry, especially with the increasing senior population and demographic trends, indicate a promising future for reverse mortgages.
While profitability is a key factor, we are also motivated by the opportunity to be part of a thriving industry that caters to the evolving needs of our aging population.