Staying Ahead With Servicing continued from page 18 “Maybe they say, ‘Oh, OK, I’m good,’” McDougall says. “But if they are not, they can still hit [the pound sign] and speak to someone. It’s all about giving borrowers the information they need.” Celink’s evolving phone system reflects two of the chief trends in reverse mortgage servicing: the growing acceptance of technology among customers and the growing use of technology behind the scenes to make servicing more efficient. Technology, however, is just one of several factors changing the face of reverse mortgage servicing. Experts pointed to federal policy changes that are making the process more efficient, as well as the potential role servicers could play in expanding the market for reverse mortgages. “Education and communication are key,” says Richard Burke III, senior vice president and head of servicing, vendor risk management and post-closing for Longbridge Financial LLC. All-of-the-Above Communications It’s been said the COVID-19 pandemic accelerated the use of technology among seniors. Older people often had little choice but to turn to cellphones and computers for communication and connection. Now that people once again have choices, the focus is on allowing them to communicate in whatever format they prefer, McDougall says. Nonetheless, digital channels continue to grow faster than expected, she adds. About 50 percent of Celink’s borrowers are requesting their lines of credit through an online portal, blowing past the company’s goal of 30 to 35 percent. The goal is now 60 percent. “We’re constantly moving the needle,” McDougall says. Phone calls often follow, however, as borrowers look for reassurance that their digitally initiated requests are being processed. Celink leans on its understanding of borrower behavior, especially since borrowers often are reacting to actions or messages from the company itself, McDougall says. In addition to its focus on routine transactions, Celink has created messages designed to assist in what is often the most complex issue for a reverse mortgage: the death of the last surviving borrower. To educate borrowers’ heirs, the company created a video explaining what they need to know and walking them through the various required documents. The goal is to reduce anxiety and make the process smoother, McDougall says. “It’s not that we don’t want to talk to the heirs, but we believe their satisfaction is much greater the fewer times we go back and forth with them,” she explains. Internal Affairs Other technologies are streamlining the internal processes for servicers primarily by automating repetitive functions that don’t require human intervention. Celink, for example, has deployed nearly 50 so-called “robots” at various points of the servicing process, McDougall says. Robots—essentially bots built into a computer system—also are being used by PHH, says Michael Kent, president of PHH Mortgage/ Liberty Reverse Mortgage, based in Rancho Cordova, CA, and co-chair of NRMLA’s Board of Directors. When staff members do need to step in, they can rely on the system to queue up whatever is next for a given loan. “The system is very workflow driven,” Kent says. One challenge for the deployment of technology in the reverse mortgage space is the return on investment. Because the volume is smaller than in the forward market, it takes longer to recoup the spending on more efficient processes. PHH, however, can use about 60 percent of its forward-servicing technology in the reverse market. “That really gives us a huge advantage when it comes to serving our customers,” Kent says. Michael Kent Richard Burke III Marion McDougall 20 REVERSE MORTGAGE / SEPTEMBER–OCTOBER 2023
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