Erik Morin reflects on his return to reverse mortgage appraisal
Last April, Erik Morin returned to reverse mortgage valuation by joining an appraisal and valuation firm Atlas VMS. Morin founded Landmark Network in 2007, a company that quickly became a major player on the valuation side of the reverse mortgage industry before being acquired by Class rating in 2018.
After leaving that company, he returned to space in 2023. Now, after more than a year of working with the industry again, Morin got to work with HousingWire‘s Reverse Mortgage Daily (RMD) to discuss what the company is facing now, and how valuation in the reverse mortgage world is evolving with business realities and the ever-changing landscape of valuation management companies (AMC).
Consolidation and impact
Morin said that compared to mid-2023, the industry generally feels like it is in a similar position, especially when it comes to consolidation.
“There is still consolidation happening in the AMC world,” he said. “The broader valuation industry itself is preparing for new forms of valuation, which should be introduced next year. These forms are designed less as a form-filling process and more as an intelligent data collection method.”
Certain changes on that front could change what assessments look like and how new data is implemented into the process, he said.
“That’s probably on the cards for the fall of next year,” he explained. “I mainly focused on the present, namely building Atlas.”
In terms of how the reverse mortgage industry has been affected, Morin explained that while some of the leading players have changed, the valuation space itself and the reverse interactions have remained quite stable.
“We were able to get back up and running because we didn’t have to make any significant learning curve or adjustments,” he said. “Specifically in the reverse mortgage space, there was a need for an improved experience for borrowers, which we believe is coming back. This need has been proven over the year as we have worked with more lenders and brokers.”
Borrower experience
The need for a “better lending experience” may be cited by some active lenders and brokers in the industry, but they may not necessarily know how to make such an idea a reality in terms of valuation. Morin said it’s his and Atlas’ job to know.
“The way we manage our review process is different,” he says. “We try to make it clear that not all AMCs are equal. Our process is significantly more intensive and focused on the borrower experience, meaning we are more active with the borrower than most or any AMC.”
Similar to how a reverse mortgage lender is more committed to its customers than its term mortgage counterpart, Atlas aims to deliver something similar with its services, Morin said.
“Turn times and things like that are not just a data point, but making sure that we get the borrower across the finish line as easily as possible and that they are satisfied throughout that process, that’s our business model,” he said.
Morin and Atlas also believe that prioritizing the interests of the borrower and balancing them with the speed at which an appraisal is completed helps everyone involved in the transaction.
“From the lenders’ side, we understand that until a loan is closed, it is in danger of not being closed,” he said. “Our job, as part of the team, is to get them a valuation as quickly as possible, while keeping the interests of the borrower intact. We have influence on that.”
Open arms
When asked whether it has proven challenging to transition from being absent from the reverse mortgage valuation market 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 returning to space and being welcomed by our former customers,” said Morin. “These trusted relationships have been built up in the more than ten years that I have been in the profession. At a time when many lenders have reduced the number of AMCs on their list due to volume needs, we showed up and they completely pivoted.”
Former partners who may have scaled back the number of suppliers they did business with instead prioritized partnerships with Atlas, largely because of these previous long-term relationships, Morin said.
“On paper, we were approved in only a handful of states at the time — not even a national AMC in 2023 when we started,” he said. “Today we continue to add more states, but initially compliance teams had to approve an AMC licensed in only five states, with limited financial records and work history. That didn’t make sense on paper, but it was the relationship and the trust they had in us [that carried it forward].”
That trust was established, Morin added. Atlas is now approved by “most” wholesale reverse mortgage lenders, including approvals for those who originate proprietary reverse mortgages designed for much higher value homes.
“They entrust us with these high-end valuations and reconciling multiple reports when that is the case,” he said. “Our lead appraiser previously held that role at AAG, which gave him a significant amount of experience in reverse and with its own products,” he said.
