To gain insight into the current state of the technology ecosystem in the reverse mortgage space, Reverse Mortgage Daily (RMD) from HousingWire interviewed experts from two prominent lenders and the president of the National Reverse Mortgage Lenders Association (NRMLA). Fairway chose not to provide additional comments on their recent actions.
Current State of Technology
When evaluating the current state of technology in the reverse mortgage industry, Brian Conneen, the newly appointed Chief Information Officer at Finance of America (FOA), emphasized the significant opportunity lies in digital customer experiences.
“Digital customer experiences are now expected by reverse mortgage customers, similar to other lending products,” Conneen stated. “These experiences not only benefit customers but also enable providers to streamline the origination process while still providing access to knowledgeable representatives.”
Bill Packer, the Chief Operating Officer at Longbridge Financial, highlighted their efforts to simplify product interactions through enhancements to their website and the development of an AI-powered chatbot named “Bridget.”
“Packer explained, “Bridget is well-versed in our HECM and Platinum products and is currently being trained on our servicing guidelines. We have tested the chatbot with select clients and will soon make it available for general use. The feedback has been positive, and Bridget continues to learn and improve daily.”
Conneen added that it is essential to cater to both digital and non-digital customer preferences to provide a flexible customer experience and stay ahead of industry trends.
NRMLA President Steve Irwin expressed his enthusiasm for Fairway’s hybrid e-closing announcement, emphasizing the importance of meeting consumer needs through technological advancements.
Challenges and Opportunities
Integrating technology into the reverse mortgage industry faces challenges due to strict regulations and the unique focus on older Americans. Despite these obstacles, industry professionals remain optimistic about the potential for technological advancements.
Packer acknowledged the progress made in recent years but noted that the size of the reverse mortgage industry compared to the forward mortgage sector has revealed some barriers to technological adoption.
“Technology investments can drive up costs in a niche industry like ours, but they also present opportunities to reshape client services,” Packer stated. “As we demonstrate the value of our solutions and build scale, more technology providers will see the potential to collaborate in originations and servicing.”
Irwin highlighted the challenges of connecting with forward partners and the need for better communication between technologies in the forward mortgage sector.
“The differences in processes, terminology, and systems between reverse and forward mortgages can hinder communication between loan origination systems and point-of-sale technologies,” Irwin explained.
Packer emphasized the importance of navigating the regulatory environment to incorporate technology effectively while protecting consumers.
“I am excited to collaborate with NRMLA and the Mortgage Bankers Association in engaging with the new administration to find ways to reduce unnecessary barriers and uphold consumer protection practices,” Packer concluded.