To get a better understanding of where the technology ecosystem is in the reverse space today, Housing‘S Reverse MortGage Daily (RMD) sat down with specialists with two other leading lenders and the president of the National Reverse MortGage Lenders Association (NRMLA). A Fairway representative refused to comment on his recent step.
Where the tech stack is today
When asked to assess where the reverse mortgage technology is today, Brian Conneen, the recently appointed Chief Information Officer Financing of America (FOA), said that there is the greatest chance within digital customer experiences.
“They are mainstream in many credit products, and now reverse mortgage customers expect the same kind of involvement,” Said Conneen. “Digital customer experiences also benefit dramatically to providers, so that willing customers can serve from the original process themselves and still have access to expert representatives.”
Bill Packer, Chief Operating Officer Longbridge Financialsaid that his company continues to find ways to “make product interactions” easier and effortless “. This also includes digital experiences such as website improvements and the development of an AI-driven chatbot that calls it ‘Bridget’.
“Bridget is very well informed about both the HECM and our Platinum products, and is currently learning our maintenance guidelines,” said Packer, referring to his brand name own mortgage offer.
“We have tested the technology with a select group of customers, and we will soon make the chatbot options available for general use. The feedback is extremely positive and Bridget remains smarter every day.”
It is not necessary for customers who have a digital or non-digital preference to stay behind, Conneen added.
“Customers who prefer to stay in digital experiences are well served and representatives have more time to help customers who want more practical help,” he said. “Creating this kind of flexible customer experience will help companies in the industry to stay ahead of the curve.”
NRMLA president Steve Irwin described how he is ‘excited’ about the announcement of the hybrid e-closings of Fairway. He said it is all about properly assessing the comfort level of the consumer and adjusting their needs.
“When we look at platforms, application processes, maintenance processes and service platforms, it is clear that our members always try to meet the consumer where they are,” Irwin said.
“If the consumer is able and comfortable with various technological progress, our members and industry must ensure that we can deal with them in those spaces – whether online access, AI interfaces or other technical improvements that support the consumer. That is nothing but positive for industry.”
Institutional barriers?
It is not a simple process to include more technology in the reverse mortgage space, because mortgages have already been strongly regulated and that aimed at older Americans are demonstrably even more harder.
When asked whether there were institutional barriers that prevented more widespread acceptance of technology in reverse mortgage processes, every professional seemed to have an optimistic point of view.
Packer said that demonstrable progress has been made in recent years. But he noted that the size of the inverted industry compared to the forward mortgage side has uncovered some roadblocks.
“Technology investments in a niche industry such as ours can sometimes stimulate higher costs per unit, but it also creates a huge potential to reform how we serve customers,” he explained. “As we continue to build up scales and demonstrate the value of our solutions, I believe that more technology suppliers will see the opportunity to work with us in both original and maintenance.”
Some of the obstacles for adoption that Irwin heard in the center of industry efforts to make more contact with Forward Partners, he said.
“On the forward mortgage side, the technologies do not always communicate well,” Irwin explained. “Although a reverse mortgage is still a mortgage, there are crucial differences-in processes, in terminology and in systems. So loan students do not always talk to the reach of point-of-sale technologies that are available.”
Another piece of the puzzle is the wider regulatory environment, which should certainly be part of any conversations about technological recording, Packer said.
“Certainly, the regulatory environment has created a number of unintended consequences,” he said. “But I am energetic because of the possibility of together with NRMLA and the Mortgage banking association (MBA) While they are involved in the new administration to find smart ways to reduce unnecessary barriers, while maintaining the best practices that protect consumers. “
