Sept/Oct 2021 Reverse Mortgage Magazine

she adds. “And getting people on the telephone is a real struggle because people don’t answer the phone because they are bothered by telemarketers.” The adoption of new technology has helped to advance another trend in servicing reverse mortgages: enhancing the consumer experience, which helps to avoid defaults and further erase the negative perceptions that some people still bring to the product. Servicing a reverse mortgage is more challenging than servicing a forward mortgage, says Flynne. Federal rules, designed to protect the government insurance fund for Home Equity Conversion Mortgages (HECMs), lay out strict processes and deadlines for communicating with bor- rowers. Servicers also are working with a special group of people at a difficult time in their lives, whether due to the passing of a spouse, health problems or diminishing finances. But, she says, “Originators, I think, have come to realize that their servicer really helps them take care of the reputation of the product. It is the servicer who clearly demonstrates that it’s a standard loan, that we’re not looking to take their home and we as servicers can help in many areas, such as when they need assistance.” Servicers now hope that the changes in technology usage will be matched by changes in the regulations that govern their work. The U.S. Department of Housing and Urban Development (HUD), for example, still requires paper documents in many cases. “I think some advances could be made there electronically without introducing risk,” Flynne says. Greater flexibility could also make a difference when it comes to appraisals, which are growing in cost and increasingly difficult to obtain in a timely manner, given the dearth of qualified appraisers. “That’s an area that’s just begging for acceptance of technological advancements,” Flynne says. Taking Borrowers Online Even in the absence of regulatory change, servicers have been innovating. In early 2020, Celink, a subservicer based in Lansing, MI, piloted a new borrower-facing website that allows borrowers to monitor their accounts, change their contact information and draw on lines of credit using any device, among other actions. COVID-19 accelerated the roll-out, says Gail Balettie, senior vice president of client satisfaction at the company. Celink also upgraded its phone systems so that bor- rowers would have more options for self-service, among other benefits, says Ryan LaRose, chief client and industry relations officer at Celink. “It just provides a better experience for the borrower,” says LaRose, who notes that customer expectations were changing even before the pandemic. Surveys a decade ago showed that around 90 percent of borrow- ers did not want their reverse mortgage information on the internet, LaRose says. New borrowers, however, are the opposite. They want self-service options and inter- net-based solutions. “We have to serve two populations,” LaRose adds. “We still have those borrowers who don’t want to go online. They still want to talk to agents. And we have those who are com- fortable with online services.” Future plans for Celink include giving borrowers the ability to go paperless, at least as far as is possible under current regulations, Balettie and LaRose say. Borrowers can upload documents and forms today, and they will have online access to retrieve their most frequently requested loan documents online as part of website updates scheduled for the end of this year. “Borrowers have been asking for that for quite some time,” Balettie says. Other possibilities include the use of predictive analytics that will allow Celink to better understand why borrowers are calling and to reach out proactively based on a borrower’s activity. “We’re working on intelligent ways to communicate with borrowers to make their experience more seamless,” Balettie says. Pending Foreclosures The big challenge for the second half of 2021, however, is not all technological. It involves handling the flood of foreclosure warnings delayed by pandemic-era Gail Balettie Ryan LaRose Servicers Adjust continued on page 20 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2021 19