The First American Corporation (FAF) said earlier this week that it has developed what it believes is the first scoring system to help servicers identify candidates for a government-insured Home Equity Conversion Mortgage (HECM), who might otherwise face foreclosure. The new score was launched this week at the National Reverse Mortgage Lenders Association’s annual meeting in Los Angeles. The new loan-level score examines a broad range of homeowner and property data obtained from First American’s extensive data repository, the company said in a press statement. For example, it takes into account the number of borrowers on the loan and their ages. Specific property information analyzed to determine the score includes: eligible residences, property types, appraised values, outstanding mortgages and liens, and the new HECM national loan limit of $417,000. The weighted value score generated predicts the likelihood of the loan being eligible for an HECM reverse mortgage. The evaluation also considers factors that tend to complicate reverse mortgages, such as living trusts, bankruptcy filings and powers of attorney. The servicer receives a report that includes an estimated principal limit after paying off current liens, servicing fees, originations fees, mortgage insurance and estimated closing costs. Using the score, the servicer can then determine whether to offer a HECM loan as one of its loss mitigation workout options. The score considers all HECM loan options and provides alterative choices to traditional loan modification. “Last year, 648,000 Americans age 50 and older fell behind on their mortgage payments, and nearly 50,000 went into foreclosure, according to the American Association of Retired People (AARP),” said Randy Gilster, of First American’s Outsourcing and Technology Solutions business line. “Homeowners who are 62 years or older and who have equity in their homes can often qualify for a federally insured reverse mortgage, without regard to their credit score. Our new score helps lenders identify the best candidates for these loans and gives default managers new options to help senior homeowners.” For more information, visit http:/www.firstam.com. Write to Paul Jackson at paul.jackson@housingwire.com. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.