Mutual of Omaha Mortgage‘s reverse division has introduced a groundbreaking program called “Broker Protect,” which aims to provide industry-first protections to brokers working with the company.
Approved brokers and principal agents of Mutual of Omaha will benefit from five core protections, including a commitment that the lender will not solicit borrowers within the broker network. Additionally, broker-network borrowers will be excluded from the company’s outbound marketing campaigns.
The company will inform broker partners of potential refinance opportunities and notify them if a payoff is requested on one of their loans within the broker network. Furthermore, the broker’s name will be added to the borrower’s monthly servicing statement, allowing interested borrowers to directly contact them for refinance opportunities.
‘Aligned with their success’
These protections are designed to establish trust with brokers when they bring their business to Mutual of Omaha, according to reverse division president Alex Pistone.
“To our knowledge, this is the first time an investor has offered such protections in the reverse mortgage industry,” Pistone stated in an interview with HousingWire‘s Reverse Mortgage Daily (RMD). “We view this program as a way to demonstrate our commitment to the success of our broker and principal agent partners.”
Pistone explained that by assuring brokers that the company will not solicit their borrowers, it paves the way for a more productive relationship on both ends.
“If a new broker understands that we won’t solicit their borrowers, it clears the air and allows us to focus on assisting our brokers in building a more profitable business,” he said.
When asked about the motivation behind the program’s creation, Pistone emphasized Mutual of Omaha’s brand recognition among older homeowners and the desire to extend these sentiments to broker partners.
“We recognize that brokers who leverage our brand tend to secure more loans,” Pistone explained. “Our wholesale clients wanted assurance that aligning with our brand wouldn’t result in lost relationships when borrowers refinance or relocate at a later date.”
He described the program as a clear statement of their understanding and appreciation of the relationships brokers have built with clients, affirming their commitment to not interfere with these connections.
Eye on wholesale growth
Pistone indicated that as the company aims for further growth in the wholesale lending sector, they want to make their dedication to these partners evident. Broker Protect is seen as a means to achieve this.
“We have been the fastest-growing wholesale investor in the industry in recent years,” he noted. “If our commitment to the wholesale business wasn’t apparent before, it should be now. Since the program’s launch a few weeks ago, the response from brokers and principal agent partners has been overwhelmingly positive.”
Looking ahead, Pistone characterized the new program as just the beginning of Mutual of Omaha’s upcoming initiatives in the wholesale arena.
“We’re just getting started,” he stated. “Our goal is to become the leading wholesale investor in the reverse mortgage industry. We are investing in technology and program development to reach that goal. In the meantime, we will continue to expand by providing unparalleled support to all our clients.”
Regarding the message he hopes the industry takes away from the program’s establishment, Pistone reiterated the importance of trust.
“We want the industry to know that they can confidently partner with us and leverage the Mutual of Omaha brand without concerns about losing borrower relationships,” he emphasized.
According to Home Equity Conversion Mortgage (HECM) endorsement data compiled by Reverse Market Insight (RMI), Mutual of Omaha currently ranks as the third-largest wholesale originator in the country as of August. It follows channel leader Longbridge Financial and industry-leading lender Finance of America (FOA).
On a year-to-date basis through September, Mutual of Omaha surpassed FOA as the top industry originator based on retail HECM endorsements.
Mutual of Omaha and Longbridge are currently embroiled in a legal dispute over marketing practices that Longbridge claims are deceptive.
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