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Vendor Addresses Reverse Mortgage Interest By Anthony Garritano As more third-party originators look to remain competitive, they'll look to get into new products and spaces like reverse mortgages, for example. Realizing this demand, origination vendor Mortgage Cadence Inc. has launched a new reverse mortgage point-of-sale technology called Mortgage Cadence Prelude. "We're releasing a reverse POS tool to meet demand," said Michael Hammond, chief marketing officer at Mortgage Cadence. "A number of the people entering the market now will operate as a broker or a correspondent. Because we have the reverse workflows already and four of the top five reverse lenders are our clients, we're uniquely suited to do this. "If you look at the market there are some reverse mortgage calculators out there, but it's not intuitive technology. You need a system that's easy to use and that integrates easily with the lender's backend. Unlike a lot of the POS systems in the market it provides all the docs all the way through to the closing process." This new application is specifically designed for use by lenders and brokers moving into the growing reverse mortgage lending channel. With four of the top five reverse lenders in the country already using its Mortgage Cadence Orchestrator LOS for reverse lending, the company says there is a desperate need for reverse lending POS software that is easy to use and interfaces well with the origination platforms in place at the nation's largest reverse mortgage lending firms. "There is a need in the market for point-of-sale technology that allows originators to satisfy customers more effectively," said Michael Detwiler, CEO of Mortgage Cadence. "This market is growing very rapidly and the software lenders are offered to serve customers is sorely lacking. Mortgage Cadence Prelude will be as easy to use as the simplest forward lending origination software, but will include the specific functionality required to originate reverse mortgages." Mortgage Cadence Prelude will not be a pre-configured version of Mortgage Cadence Orchestrator and is not designed for lenders already using that application, rather it is true point-of-sale software specifically written for the reverse mortgage market. With 35 million senior citizens in the United States today and another 77 million baby boomers just reaching senior age, all of whom have most of their wealth locked in their home equity, the reverse mortgage lending market is only about 1% penetrated. Many of the lenders that move into this lucrative market in the days ahead will serve as correspondents or brokers for the major reverse lenders already operating in this channel. These new entrants need a user-friendly tool that will allow them to get paid without having to become an expert in the reverse mortgage loan product. That POS tool does not exist today for the reverse channel, according to Mortgage Cadence. After serving the top reverse mortgage lenders in the space for years, it was apparent that in order to respond to the growth expected in this market, a new POS tool would be required that would integrate seamlessly in a service-oriented manner with the processing software these lenders were using, noted Mr. Hammond. "With years of success developing technology for both the forward and reverse mortgage markets, Mortgage Cadence has moved ahead to fulfill this need. We can now provide tools to brokers selling loans to the top four reverse mortgage lenders so they have a very powerful tool of their own. That data will flow more seamlessly and flow directly into the systems of the reverse mortgage lender's application. Because Mortgage Cadence Prelude is not designed for originators that need a full enterprise solution for reverse mortgages, the on-demand offering will be provided via a transaction-based model with no cost of entry," said Mr. Hammond. "Originators who choose to use the new Mortgage Cadence Prelude POS can be up and running with the software within 24 hours."

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