Reverse Mortgage Technology Misses Smaller Brokers

image Mortgage Technology editor Anthony Garritano writes that survey results found that 76% of respondents said there isn’t enough technology out there to automate reverse mortgages.  To be fair, the survey had a whole 17 people respond but it got me thinking, what are people looking for?

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.”

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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?

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  • This is an interesting topic.

    I just left the Reverse Mortgage Industry due to lack of business. I moved to Web Development, but Reverse Mortgages still have a piece of my heart. I have always wanted to develop a really great lead tracker that exported to the major systems like Reverse Vision and IBIS, but at this point my question is this…

    Are there enough lenders, brokers, and general business to support the development of an application like this????

    I am capable of creating the system, integrating it with any major LOS that is willing to cooperate, and offering it a price anyone can afford, BUT will I get my development dollars back?

    The numbers say no since there are only around 2,000 lenders doing Reverse Mortgages, but maybe I am wrong.

    What I would like to hear is what the average broker wants from their LOS system. Is it as simple as creating a really great lead tracker that can integrate into the top LOS' like ReverseVision? OR do you need a complete system including doc preparation?

    What I am trying to find out is where is the hole. WHAT DO PEOPLE ACTUALLY WANT???

  • After working with Point and Dashboard and Encompass, I can definitely tell you what I do NOT want.

    I do NOT want a duplication of data entry that serves no purpose other than registering the loan on a report for compliance or business tracking purposes. This represents a cost to the originating LO and/or processor.

    What I do want is a way to export files from whatever lenders' software to common format like a .fnm file. Most do not allow exporting, they just want to take imports from other lenders.

    What I want is a way to use the non-existent capability described above to generate pipeline reports across all lenders.

    What I want is an LOS that can order title, credit, flood, appraisals, AVMs, or any other report from a vendor I enter instead of just one or two items.

    What I want in the lender's software or LOS software is the ability to automatically create auto-populating cover letters, processing order forms, loan submission forms, closing cost worksheets, closing document requests for each lender, and the commission worksheets for my broker.

    What I want is a way for the LOS software to help me by automatically re-shuffling the document stacking order from the way the lender wants it for submission to the way my broker wants it for Quality Control review and commissions so that I don't have to stop work on new cases to get paid for the old ones.

    Stay tuned.

  • REVERSE VISION is an outstanding application that will work well for any originator in the 10-25 range. it will exceed their expectations. It is well developed and boasts superior support.

  • The Bay Docs system was created specifically for these types of clients. The system is easy to use, provides pre-application packages and continues all the way through application and closing. I know this isn't the venue to promote one's own application, however I hate the idea of brokers/lenders leaving the industry simply due to lack of technology – it is out there and if anyone is looking for more information please check it out.

  • @megenlawler I don't think anyone is leaving the industry due to lack of good technology, they are leaving because of lack of business, at least that is why I left. I cannot speak for everyone, but technology is just an extra for most people.

    Baydocs does provide a great service and they could/should be part of a good small co. lead/origination app. This would eliminate the need to integrate a doc prep system into the app.

    If I did create this system, I would probably go with a doc company like Baydocs to eliminate extra integration. There are a lot of systems that would need integration so eliminating the doc prep would be good.

    Any other systems people feel would integrate well with a lead tracker/loan origination system?

  • It would have much easier on us if the perfect system already existed however we were unable to locate something that met our needs. We looked at ReverseVision, Mortgage Cadence, RMS (Reverse Mortgage Solutions), etc.

    The two issues were either the system didn't have the functionality or ability to customize to our needs…or the system was cost prohibitive as we continue to grow and add users.

    In addition, I personally didn't like being held captive to someone else's system. I'm aware of more then one company with financial issues that almost caused their host to shut off their servers. I want to know that our data is secure and residing on servers we control. I want to know that functionality important to us (i.e. paperless system, audit process, etc.) is a developers priority too. I want to know that as the industry changes, I can modify the system to meet these changes. At the same time, I don't want to pay for functionality that we don't have a need for (i.e. state licensing/education tracking).

    I understand the need for developers to recoup development costs and profit however our model consists of maintaining a highly automated, low overhead operation in order to payout the max to our loan officers. While a software as a service offering allows companies to have access to software with low initial investment costs, it is expensive (and often difficult to customize) long term. Paying high monthly user fees would not permit us to provide loan officers with the same compensation program.

    So our solution was to build it ourselves…with the functionality we need. Yes it requires a much larger initial investment however we fully control our destiny.

    We have designed the system to minimize the burden of duplicate entry on our loan officers by requiring they input only those fields that we absolutely need.

    In addition, we have spent considerable time and resources developing API's (Application Programming Interfaces) to pull case #'s, case queries, appraisal logging, USPS address verifications, flood certs and credit reports. So instead of having to go from our website to FHA Connection, to First American for a flood cert, to USPS for an address verification, etc., this all happens in seconds with one click from our site using the information already provided.

    As the reverse sector begins to collaborate (see Reverse Mortgage Daily article http://rmdaily.wpengine.com/2009/10/07/bett… ), we hope import/export capabilities will be created to further streamline the process.

    I certainly believe there is enough volume in the industry to warrant the development of a broker based system however I don't know whether there are enough brokers willing to pay for it.

    Kenneth J. Klawans, President
    iReverse Home Loans, LLC
    a Subsidiary of Hopkins Federal Savings Bank
    Member FDIC- Equal Housing Lender

    Corporate Headquarters:

    3706 Crondall Lane, Suite 100
    Owings Mills, Maryland 21117

    Toll-Free Direct: 800-486-8786 ext. 701
    Local: 410-902-7000 ext. 701

    E-Mail: Klawans@iReverse.com

    Web: http://www.iReverse.com
    Employment: http://www.iReverse.com/Employment

    Member: National Reverse Mortgage Lenders Association (NRMLA)

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