John Mitchell, Reverse Mortgage USA president, says Bay Docs’ prominence in the industry was a key factor in the partnership as his company makes the transition from broker to lender, perhaps in light of recent changes to loan originator compensation rules. The corporation, which used to broker reverse mortgage loan production under the name 1st AA Reverse Mortgage, says making the switch created a need for system its staff could use to pre-qualify potential borrowers, process and close loans, and order document packages.

“We see Reverse Mortgage USA, Inc. as a leader in a wave of brokers seeking to become lenders, and we consistently hear that what these companies want is a flexible web-based system that is quick to market, easy to use and cost-effective. Adding this origination system, and pairing it with our traditional document preparation service, has enabled Reverse Mortgage USA to quickly and successfully begin their transition, and a number of others are following closely behind them in the rollout process,” said Megen Lawler, Bay Docs President and CEO.

Written by Alyssa Gerace

As of January 1, 2010, the US Department of Housing and Urban Development is requiring that lenders and mortgage brokers provide their clients with an updated Good Faith Estimate and HUD-1 Settlement Statement.

“My team and I have been working hard to ensure that our delivery of the new GFE/HUD documents are complete and can work with any and all of our LOS partners, such as IBIS, and with our Bay Docs’ website,” said Megen Lawler, President of BayDocs.

“We have completed and fully tested the documents and am confident to report that we are ready to move into 2010 fully compliant with the new regulations”.

According to the press release, Bay Docs will continue to work with its partners to ensure they are receiving the best product and help guide them through this transitional period.

The new application allows brokers and lenders to order reverse mortgage application and closing documents which include the required statutory forms along with calculation forms: instant quote comparison, print screen, amortization schedule, TALC and the closed end truth in lending document.

The tools will be completely customizable for the lenders and will enable users the ability to choose from the variety of reverse mortgage products said a company statement.

"Having been in the reverse mortgage industry for over 15 years, we recognized the need for loan officers to be able to compile application packages, complete with the calculations, and submit those completed packages to the investor they chose," states Megen Lawler, President and CEO of Bay Docs, Inc. "We are happy to provide loan officers with this new and highly affordable option."

In an email to RMD, Lawler said that the system is targeted to individual lenders/brokers who want the flexibility of getting applications without being locked into a specific lenders system.  She added that users also have the ability to print lender specific packages or a “universal” package that works with all lenders that they can brand and use.

Prior to joining BayDocs, Hanno played an integral role in developing the processing, origination, fulfillment, and servicing systems for Bank of America’s Reverse Mortgage department (formerly Seattle Mortgage Company).  "Our clients should be excited to know that with Hanno’s expertise and deep industry knowledge, Bay Docs document systems will be improved to better fit the needs of a growing and changing market" said Megen Lawler, CEO of Bay Docs.

Besides the new hires, BayDocs has been expanding its reach by integrating with Reverse Mortgage Solutions’ RM compass and its new partnership with Titan Lenders Corp to provide outsourced reverse mortgage processing.  

According to the press release, its HECM outsource solution takes over when the borrower completes the required counseling session for reverse mortgages.  After counseling is completed, Titan will provide originators state specific initial disclosures, vendor management, preparation of the HUD package including HECM compliant docs for 20 servicers, funding, as well as forwarding the case binder to HUD.

By outsourcing HECM fulfillment services, lenders avoid retraining staff or making additional hires with the required skill set needed to process reverse mortgages and eliminate the risks of non-compliance.  Titan Lenders Corp founder and CEO Mary Kladde, Titan also says they will absorb any cost or fees related to errors in its delivery of reverse mortgage services to lenders.

“Lenders see the reverse mortgage coming into its own as a financial alternative for Baby Boomer home owners, and they are interested in originating compliant HECM products profitably,” said Kladde. “Working with Bay Docs, arguably the most knowledgeable provider of reverse mortgage documents, Titan Lenders Corp offers lenders fast profitable HECM entry strategy — with compliance guaranteed.”

“Bay Docs aligns itself with companies that are looking to provide only the very best to their clients,”said Kathleen Leonard, Bay Docs vice president. “We were impressed that Titan Lenders Corp has been willing to invest time in understanding all the ins and outs of this industry before jumping in.”

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Both are coming on board with a combined twenty-five years of mortgage experience, and the last twelve of were centered on reverse mortgage documents. Previously Clark and Silver worked for Mortgage Cadence and prior to this they both worked for First American Nationwide Documents.

"We are very excited to bring them on board. Having in-house legal and compliance officers will greatly enhance our services and provide us with the ability for real time answers to the multitude of industry questions. They will be an excellent compliment to our existing legal relationship with Arthur Axelson of Reed Smith," said Megen Lawler, CEO and founder of Bay Docs Inc.

Bay Docs has been dedicated to the reverse mortgage business for the last 15 years and it’s their experience that sets them apart from the competition.  Ms. Lawler added, “We are constantly looking at ways to better our services for our end users and I’m positive there will be more announcements forthcoming." 

“We looked to partner with a company whose experience and knowledge of the reverse mortgage industry would benefit our end users. To my knowledge, no reverse mortgage document company has the level of expertise of Bay Docs,” states Bob Yeary, CEO of RMS, he continues, “In a fast growing, highly watched industry, it is important to know who is doing your loan documents to ensure your staying compliant while also maintaining a secure technology environment.”

Based in Northern California, Bay Docs has been providing document services to reverse mortgage lenders since 1994.  The company is also tailoring its ordering system to enable any LOS system, whether they support forward or reverse mortgage platforms, to feed directly to their order page thus facilitating lenders need for reverse mortgage documentation.

RMS released RM Compass back in June to provide a front end system built for reverse mortgage lenders to help streamline the reverse mortgage process.  The internet based LOS was designed to be cost effective for the smaller originator and scalable for larger lenders that need an enterprise platform too.