If you're hosting your applications on localhost it can be a security risk.
A blind SSRF vulnerability (with payload control) in your application could be used to gain full control over the reverse proxy resulting in the attacker gaining full unfettered access to your network.
If your server reaches out to user-provided URLs, it can be a big deal. Especially with DNS rebinding, remote users can bind domains to 127.0.0.1. Which avoids cors like protections.