Reverse mortgage software developer Mortgage Cadence, LLC has made moves to keep up with industry changes by adding advanced rules-based configuration to its underwriting system.
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