To gain insight into the current state of technology in the reverse mortgage space, Reverse Mortgage Daily (RMD) from HousingWire interviewed experts from two leading lenders and the president of the National Reverse Mortgage Lenders Association (NRMLA). Fairway declined to comment on their recent activities.
The Current State of Technology
According to Brian Conneen, the new Chief Information Officer at Finance of America (FOA), the biggest opportunity in the reverse mortgage technology stack lies in digital customer experiences.
“Digital customer experiences have become mainstream in many lending products, and reverse mortgage customers now expect the same level of engagement,” Conneen said. “These experiences not only benefit customers by allowing them to self-serve parts of the origination process, but also provide providers with access to knowledgeable representatives.”
Bill Packer, COO at Longbridge Financial, emphasized the company’s focus on simplifying product interactions and enhancing digital experiences. This includes the development of an AI-powered chatbot named “Bridget,” which has been well received by clients.
“Bridget is knowledgeable about our HECM and Platinum products, and is continuously learning our servicing guidelines,” Packer said. “The feedback on Bridget has been positive, and we are working towards making this chatbot available for general use.”
Conneen added that companies should strive to provide flexible customer experiences to cater to both digital and non-digital preferences, ensuring that all customers are well served.
NRMLA President Steve Irwin expressed excitement about Fairway’s hybrid e-closings announcement, emphasizing the importance of meeting consumers where they are comfortable.
Challenges in Adoption
While incorporating technology into the reverse mortgage space presents challenges due to heavy regulations, the experts remain optimistic about the industry’s progress.
Packer noted the industry’s growth and potential to reshape client services through technology investments, despite some roadblocks stemming from the industry’s size relative to the forward mortgage market.
Irwin highlighted the need for better communication between technologies in the forward and reverse mortgage sectors, acknowledging the differences in processes and terminology.
Addressing regulatory concerns, Packer expressed enthusiasm for collaborating with NRMLA and MBA to reduce unnecessary barriers while maintaining consumer protection standards.