Our servicing columns have typically focused on borrower care: the important, people-focused side of reverse mortgage servicing. We’re shifting attention to take a behind-the-scenes look at the critical value of technology and its role in reverse mortgage servicing. Both are foundational elements of world-class servicing. I’m pleased to introduce Brent Steiner, chief technology officer at Celink. –Ryan LaRose
I often hear people bemoan the pace of technological change. Anyone who grew up proudly carrying one of the first pocket calculators and who now has a smartphone or computer with a calculator application instead knows how exhausting keeping pace and adapting to technology can be.
The reverse mortgage industry is extremely fast-paced and dynamic. It regularly moves from current structures through the influence of emerging trends and regulatory changes that drive the market at an unpredictably intense pace. This article will address the demand for integration of information technology (IT) into servicing and how IT is helping shape the future and effectiveness of servicing by enhancing its speed and quality.
Translating “IT speak” into language that everyone can understand is a formidable task. The language of IT can appear as complex as our processes. Don’t stop reading now! I’m confident that if you stay the course, you’ll realize you’re a lot more IT conversant than you think.
The servicing platform is the control center of every servicing operation. Beyond the platform, there is a need for high-speed fiber-optic Internet connectivity lines to handle the inbound and outbound phone traffic. Dedicated and secure connections to remote hot-site disaster recovery locations ensure business continuity and secure data backup. Data security and the technology environment must utilize and be protected by an Intrusion Prevention System that is managed, monitored and administered 24/7 by security-certified professionals. Additionally, firewalls, access control policies and other protections must ensure industry best practices for security and control of confidential borrower information. Secure email encryption services should scan emails and attachments for word and pattern matching, and automatically encrypt the email for delivery.
Modern servicing systems must incorporate the ability to shift to new and enhanced platforms to support the growing and dynamic servicing business that is integral to the reverse mortgage industry. A reverse mortgage servicing platform must provide investor accounting and reporting, borrower accounting, regulatory reporting, workflow management, historical archives and GNMA HMBS reporting (which is arguably the most complex aspect of the Celink servicing platform).
The system should be modular for customer service functionality, loss-mitigation functions, reporting and loan maintenance functions. Financial activity should be managed through a series of edits and validation checks with management access level controls. As I mentioned previously, GNMA processing and reporting is incredibly complex, yet it is an essential aspect of any software platform. The ability to differentiate whole loan activities, with multiple GNMA pool activities, must be fully integrated to ensure seamless accounting, financial reporting and regulatory reporting.
Integrated services, platform independence, flexibility and agile servicing functions must be in place to meet new challenges from regulatory, client and business environments. At the same time, maximum levels of security must be maintained. This is challenging work that requires the highest level of trust and core competencies of the people and systems that IT utilizes.
To meet every challenge, and enable servicing-related organizations to thrive and grow in this dynamic market, IT must be agile and responsive. Change is one of the only constants in the reverse mortgage industry. The old paradigm of a highly structured IT environment has been replaced with one that has the same level of adaptability as the business it supports.
