Thursday, December 01, 2011

Mortgage Cadence Rolls Out HECM Configuration for its ELS

Mortgage Cadence, LLC, Denver, a leading provider of Enterprise Lending Solutions (ELS), Default Servicing Technology and Document Services for the financial services industry, has announced that an advanced rules-based configuration of its ACE® Rules Engine is now available to simplify changes to the HECM program.

As financial assessments of all reverse borrowers take hold throughout the reverse industry, executives at Mortgage Cadence expect more lenders to turn to its advanced technology to easily implement the necessary changes.

Over the past year, the company says more reverse borrowers than ever before have struggled to meet the tax and insurance obligations set forth in their HECM loan. Because of this, FHA issued a HECM Program Update on October 5, 2011 summarizing the adjustments it has made to ensure the sustainability of the program.

One noteworthy statement included in the update indicated that HUD does not prohibit additional financial capacity and credit assessment tests on HECM applicants. In addition, on October 27th, NRMLA issued its guidance on Limited Underwriting for Property Charges, which reviews an applicant’s capacity and willingness to pay property charges. Many lenders have already adopted, or are in the process of, implementing their own financial assessment tests. With quick industry adoption of financial assessments on reverse applicants, lenders must make the necessary adjustments to their underwriting process to account for the changes.

Mortgage Cadence’s rules engine is already equipped to manage NRMLA guidelines, lender guidelines and any future HUD guidelines by offering lenders a dashboard to continually modify programs as changes are made. In addition, the Mortgage Cadence Symphony loan origination solution will give lenders who sell to numerous investors the ability to support multiple guidelines.

“In order to stand the test of time, reverse lenders must be flexible to meet changing market conditions,” John Levonick, chief legal and compliance officer for Mortgage Cadence asserted. “Mortgage Cadence is not only capable of offering a flexible solution to meet those changing needs but also continuously stays ahead of industry regulations to offer our clients the guidance they need to sustain their business.”

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