“Making the transition from our own technology to working with Mortgage Cadence will allow us to focus on our business processes and strategies,” said Mark Sohl, Chief Operating Officer from Generation Mortgage, in a statement. “The ability to leverage Mortgage Cadence will enable us to focus our time and energy on continuing to provide the superior customer service in which we pride ourselves.”

By upgrading to this product suite, top-ten reverse mortgage lender Generation now has “complete and comprehensive system integration” that promises “greater efficiency and scalability in multiple business channels under the umbrella of a single solution,” according to Mortgage Cadence.

Mortgage Cadence touts its technology as enabling lenders to streamline processes and refocus attention on growing their business and increasing overall profitability.

Written by Alyssa Gerace

The advanced rules engine is equipped to “easily manage NRMLA guidelines, lender guidelines and any future HUD guidelines by offering lenders a dashboard to continually modify programs as changes are made.”

The Mortgage Cadence Symphony loan origination solution will also allow lenders who sell to multiple investors to support multiple guidelines.

The FHA’s HECM Program Update, issued Oct. 5, 2011, included an update indicating that the Department of Housing and Urban Development does not prohibit additional financial capacity and credit assessment tests on HECM applicants. Then, on Oct. 27, the National Reverse Mortgage Lenders Association released guidance on limited underwriting for property charges, meant to assess a loan applicant’s capacity and willingness to pay property charges.

Since then, many lenders have adopted these guidelines or in the process of doing so, while some have created their own financial assessments to conduct on prospective reverse mortgage borrowers.

As the industry begins to implement these assessment, it’s important that lenders make the necessary adjustments to their underwriting processes to account for the changes, says Mortgage Cadence.

“In order to stand the test of time, reverse lenders must be flexible to meet changing market conditions,” John Levonick, chief legal and compliance officer for Mortgage Cadence said in a statement, adding that Mortgage Cadence “continuously stays ahead of industry regulations to offer our clients the guidance they need to sustain their business.”

Written by Alyssa Gerace

Mortgage Cadence, a provider of ELS Default Servicing Technology and Document Services for the financial services industry, says the tool allows lenders to create initial disclosures, interim packages, closing packages, loan modification packages, short sale documents and any other financial document, and quickly and securely deliver them to the borrower or settlement agent.

“We’ve been in the compliance, content, document creation and management business since 1999 and have invested tens of millions of dollars into this product line and the seasoned team that supports it,” says Michael Detwiler, chief executive officer of Mortgage Cadence. “We have streamlined implementations and eliminated document-related problems and compliance issues while increasing client satisfaction across the board.”

The company says Finale’s features include the ability to generate forms dynamically for each individual and unique transaction, eliminate re-keying of data, automate the document generation/distribution processes, and maintain strict compliance. The forms are compliant with Fannie Mae, Freddie Mac, FHA, and Veteran Affairs programs, and the system can provide document preparation for a variety of loan types, including first and second mortgages and forward and reverse mortgages.

The program’s ability to assess the data coming from a certain system of record, and then creating the appropriate documents systematically in real time, says the company, makes it different from other document preparation services which generally utilize extensive forms libraries. Mortgage Cadence says the return on investment for this system is “unrivaled” because it’s easier to navigate and maintain.

“Finale delivers the document set that is required in complete compliance, regardless of the type of product or the jurisdiction,” Detwiler says. “We have a team of attorneys and compliance professionals ensuring our clients will be protected. The days of having an originator click boxes to determine what docs get included are over. The risk is simply too high. Lenders taking a loose approach to documents will fall out of compliance and be asked to buy loans back. Buyback requests for document-related issues are not as common now, but make no mistake, they will be.”

Written by Alyssa Gerace

“All but the nation’s largest lenders have had to settle for substandard loan origination automation for far too long,” said Chuck Kimball, executive vice president of  product experience for Mortgage Cadence. “Lenders of all sizes deserve an LOS that offers them all of the compliance support, time-saving features and reliability that the nation’s Top-100 lenders have come to expect. With this offering, we’re giving it to them.”

The product fills a current gap in the marketplace by offering an enterprise-level power in a pre-configured solution that locks down compliant processes, the company said. A lender can implement and put the software into production in just a few weeks.

In a regulatory climate that is consistently changing, Symphony will allow its users to implement change within 24 hours. It is entirely Web-based, includes a document prep service, and can integrate with third-party vendors.

Written by Elizabeth Ecker

Mortgage Cadence announced it received an investment from Monitor Clipper Partners to expand its product and service offerings on Tuesday.  The company said it will help to expand its product and service offerings through strategic acquisitions and internal initiatives.

Mortgage Cadence is a provider of enterprise mortgage lending solutions, loss mitigation technology and documents services for the financial services industry.  The company also provides technology to reverse mortgage lenders through its Orchestrator product and Finale Document preparation services.

“The driving force behind Monitor Clipper Partners’ decision to invest in Mortgage Cadence is our commitment to providing financial institutions with the last lending platform they will ever need,” stated Michael Detwiler CEO of Mortgage Cadence. “Mortgage Cadence has thrived over the past eleven years due to our outstanding team and a culture that has always been innovative and adaptive to the industry. We have a deep understanding of the market’s needs, facilitating our ability to rapidly deploy solutions that meet the ever-changing demands of our clients.”

“Adding Monitor Clipper Partners to the team helps solidify Mortgage Cadence’s position as the industry’s premier technology provider,” said Detwiler.  ”Monitor Clipper’s capital and expertise will enable us to continue to distance ourselves from the competition in our current markets and position ourselves for success in future target markets.”

Monitor Clipper Partners is s a Cambridge, MA based independent private equity firm that manages over $2 billion in capital with approximately 1,000 professionals in 29 offices worldwide.  According to the company website, Mortgage Cadence is its first investment into the financial services area.

“Mortgage Cadence represented a rare opportunity to invest in the leading provider of powerful enterprise technology solutions for financial institutions operating in the mortgage and mortgage services markets,” stated Adam Doctoroff, Partner at Monitor Clipper Partners. “The management team has a proven track record of realizing impressive growth and profitability while maintaining the vision to continually adapt to market conditions.”

Adding, “Mortgage Cadence is well positioned to execute on numerous significant development opportunities including further penetration of their existing solutions, creating new solutions in related areas and acquiring attractive industry players.”

Terms of the investment were not disclosed.

"I am very excited to welcome John Levonick to the Mortgage Cadence family and look forward to the compliance expertise he will offer our clients," said Michael Detwiler, CEO of Mortgage Cadence. "As we continue to expand our overall footprint within the financial services space, John’s extensive knowledge will come in very useful in exponentially increasing our compliance solutions."

As CLO for Mortgage Cadence, Levonick will increase the compliance solutions currently available and those inherent within the product suite, while working closely with Mortgage Cadence clients in identifying and managing compliance risk.

In addition, he will assist clients in interpreting compliance requirements, developing risk mitigation strategies and implementing the requisite controls within the Mortgage Cadence platform(s) to best protect the individual client.

This compliance approach provides reverse mortgage lenders with the expertise and compliance automation tools needed to address constantly changing state and federal rules and regulations.

“The past year has seen significant changes within the Mortgage Industry. The majority of these changes have pushed to the forefront the need for lenders to meet essential compliance requirements. The burden on lenders is dramatic as they seek to meet the demands of regulatory agencies, both federal and state,” stated Michael Detwiler, Chief Executive Officer of Mortgage Cadence.

“We have invested significant amounts of time and resources in our compliance support services which includes Compliance Modeling. Our Compliance Modeling is a paradigm shift that delivers compliance and process within the lending workflow instead of using compliance tools to address issues/errors after the fact. These enhancements are yet another way we proactively assist our clients in meeting these extraordinary regulatory demands.”

Reverse mortgage lenders benefit from this shift in compliance automation by significantly mitigating risks from buybacks, fines and the potential loss of licenses said a company statement.

This enables lenders to dynamically enforce business policies within new regulatory mandates.

There are origination systems catering to larger lenders from Reverse Vision, Reverse Mortgage Solutions, Mortgage Cadence, and IBIS, but these aren’t necessarily geared towards lenders doing 10-25 loans a month.

Chris Mullins, COO at American Advisors Group (AAG) told MT that “Most brokers have to cobble together a forward LOS and leverage individual lender systems for the reverse aspects.”

Companies like Reverse Fortunes and RemoLive help companies manage leads but neither provide a way to submit those leads directly to wholesale lenders.  Brokers are forced to rekey all of their information into a wholesale lenders LOS. 

In the “forward” business, software like Encompass or Calyx Point allow brokers to seamlessly submit their borrowers loan information to a range of lenders, but we have yet to see anything like it in the reverse mortgage business.

It would be nice to have that sort of functionality, but the big question is, do lenders doing 10-25 HECMs a month want to spend money on an LOS geared towards their needs? 

Most brokers I spoke with seem to think Excel does enough to get by and aren’t sure they want to spend the money on software when it could go to generating leads.  What are your thoughts?

Looking For Help On Reverse Mortgages