Reverse mortgage assignment processing is tedious, cumbersome and demands stringent compliance with evolving regulations. There’s not much you can do about that. What you can do is equip your organization to seamlessly handle processing using the right technology tools and expertise. Consider the case of a large non-bank servicer that struggled to maintain a healthy HUD claims submission rate. It was drowning in a backlog of claims that impacted not only its profitability but also its growth. The servicer partnered with Sourcepoint to deploy an industrialized solution to complete document packaging and submission, enabling it to reduce costs, improve turn times, and accelerate reimbursements from HUD.
The non-bank servicer is not alone. Today, baby boomers own 32 million homes or 2 out of every 5 homes in the country, and widely use reverse mortgage in retirement. As a large number of these loans near Maximum Claim Amount (MCA), many servicers are running into roadblocks when it comes to optimizing their reverse mortgage processes, including HUD claims assignment. The reason, loans originated over a decade ago are often plagued by multiple issues across collateral and origination documents. Curing these issues prior to submission requires the implementation of an intelligent, technology-enabled process that is designed to provide end-to-end visibility and fast track tedious resolution processes, including reviews, audits and follow-ups.
As the reverse mortgage market becomes more competitive, what can your organization do to retain competitiveness and profitability in the space? For starters, you can team up with an experienced partner who can help you fast track processing while quickly responding to evolving market and regulatory changes. Leveraging over 25 years of experience, Sourcepoint has designed an end-to-end digital-enabled support solution across the reverse mortgage lifecycle, with specialized focus on HUD claims processing. Our experts provide deep domain knowledge to improve the accuracy and agility of every sub-process.
Take HUD claims processing, for instance. Rigorous reporting requirements and curative issues slow down the assignment and payment process as reverse mortgage servicers struggle to provide all the necessary documentation, creating significant balance sheet stress and counterparty risk. Sourcepoint helps clients save, on average, approximately $300 per loan file on HUD conveyance. Our automated workflows and expert resources drive rejection rates down and accelerate submission cycles, improving liquidity and profitability. Here’s how Sourcepoint experts add value:
- Kick starting the document packaging process for loans approaching MCA of 98% or greater.
- Conducting a thorough initial review of all collateral, servicing and compliance documents, and identifying all exceptions and curative action required.
- Executing best practices-based exception handling to cure identified errors or issues such as outstanding HOA or taxes, title policy issues or missing documents.
- Conducting a final review and submitting the package on HUD’s servicing.
- Following up with HUD servicer, monitoring submission denials, and creating re-submission packages for rejected ones, to close the loop.
In the long run, leveraging a partnership-based approach to reverse mortgage assignment processing delivers multi-pronged benefits. It helps reduce overhead by eliminating the need for large in-house processing teams, transforms fixed cost processing to a variable cost model and improves profitability. At the same time, streamlined processes help dramatically accelerate HUD submission rate, increasing liquidity.
Our goal is to quickly and efficiently streamline your reverse mortgage process using our expert resources to help you drive superior customer satisfaction and profitability. Explore our website to learn more about what Sourcepoint offers in the reverse mortgage services domain. Our holistic approach is designed to ensure compliance and fast track the end-to-end process, allowing you to focus on your core business.