As they adapt to current trends in technology use, servicers also need to keep an eye on the future. That includes technologies such as artificial intelligence (AI), which has fueled bright hopes and serious concerns in recent months. “We have some ideas about how great it could be. We also have some fears that we need to work through,” Kent says. “But I think AI could offer some really incredible solutions down the road as it’s perfected and implemented.” Regardless of how the technology develops, Kent sees a continuing role for the human element in servicing reverse mortgages. “As much as we need to be on the cutting edge from a technology standpoint, we have to be on, and I think we are on, the cutting edge of customer service, which means you have to meet people where they are,” he says. Processing Policy Changes In addition to technological changes, servicers are embracing recent policy pronouncements from the Federal Housing Administration designed to streamline processing. In May, the agency issued a letter making several tweaks designed to speed up payments to mortgagees when they assign a HECM to the U.S. Department of Housing and Urban Development. The changes include: • Lowering the minimum loan balance required to submit an assignment claim for review from 97.5 percent of the maximum claim amount to 97 percent; • Allowing mortgagees to submit original notes and mortgages no later than 90 days after the assignment claim payment date; and • Modifying the supporting documentation mortgagees must submit to be eligible for preliminary title approval. “The Home Equity Conversion Mortgage program is an important resource for the nation’s senior homeowners who wish to age in place,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said in a statement at the time. “Today’s changes simplify processes and pay mortgagee claims more quickly, providing meaningful relief to program participants as they navigate the unique challenges of today’s economic environment.” The reverse industry is now working with federal regulators to develop better loss-mitigation tools, Kent says. That could include programs to help seniors stay in their homes or to streamline the process of terminating a loan after the final borrower has left the home. “These are issues that the Federal Housing Commissioner’s office can get their arms around, work with industry and come up with creative solutions, as opposed to solutions that might have budgetary implications or require legislative action, which can be a fairly big issue,” Kent says. One fairly successful loss mitigation tool has been the Housing Assistance Fund. Created by the American Rescue Plan Act in 2021, the $10 billion fund has been doling out money to homeowners at risk of foreclosure across the United States, including owners with HECMs. Celink has been promoting the program, McDougall says, noting the company has arranged assistance for about 300 of its borrowers. “It’s been a huge success for us,” she adds. Growing the Pool Like the rest of the reverse mortgage industry, servicers are eager to see the market grow, particularly as people look for ways to extend their retirement savings. For McDougall, that could include helping new originators understand the HECM and dispel any misconceptions still associated with the product. “One of our key strategies over the next 24 months is to leverage our deep understanding of the product to help educate others on how servicing works for reverse mortgages and to articulate all the positive changes that have been made to the program over the past ten years,” she says. While new entrants would heighten competition, they would also increase the profile of the product, ideally leading to a bigger market for all originators. “If we got another one or two big banks again in the market Staying Ahead With Servicing continued on page 22 REVERSE MORTGAGE / SEPTEMBER–OCTOBER 2023 21
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