Orange, CA, March 21, 2022 (GLOBE NEWSWIRE) -- For decades, traditional mortgage lenders have dabbled in and out of the reverse mortgage category and decided the product was too complicated for clients and loan officers alike. But the truth is that the product has changed, and the community of people considering a reverse mortgage has grown exponentially since just a decade ago.
Innovative mortgage company Ennkar has been overhauling the home loan industry as it has introduced a novel technology that dramatically simplifies the reverse mortgage process, offering a breakthrough to brokers who have traditionally found the loans too complicated to offer.
The Overlooked Opportunity For Brokers
According to one of the founders of Ennkar, Emir Abdo, there are two challenges that prevent the industry and product from growing. First, the lack of reverse mortgage literacy in both the consumers and the loan officers. The reverse mortgage has evolved and is much safer and stronger today than it was a few short years ago.
“Essentially, the only difference between reverse mortgages and any other loan is that the borrower has the option to skip monthly payments if they would like (even all of them),” he shares.
The second challenge is the process. “The systems and technology used to originate a Reverse Mortgage is archaic. Despite increasing interest from homeowners about applying for reverse mortgages, with some industry statistics recording a 34 percent increase in the volume of the loans in 2020 alone, we know that there is really only 1 major LOS (loan-origination software) in place and [that] presents many challenges. Our growth strategy is centered around improving our tech because we firmly believe that technology is going to continue to play a huge role in our ability to help our borrowers and our partners.
Ennkar Using Mortech To Revolutionize Reverse Mortgages
Ennkar is doing things differently. To revolutionize how reverse mortgages are done, this “MorTech'' firm (mortgage technology) created a system for a quicker, simpler approach to lending. Their system and their people make it easy on their affiliates and customers to know exactly where the loan is in the process and very easily identify what is missing to get the loan to the finish line. Ennkar is encouraging lenders who might previously have been intimidated by reverse mortgages to finally add them to their portfolio.
“Our technology and our people do all the work for brokers,” says Abdo. “Just like McDonald’s revolutionized and streamlined the fast-food assembly line in the 50s and 60s, we’ve created a landmark new approach that breaks down long-standing barriers.”
“Our new Ennkar process makes it much easier for lenders to originate reverse mortgages when previously they might have thought they were too complicated and time-consuming. They can submit a loan to Ennkar and the technology and our staff quickly and easily handle the rest,” says Abdo.
This in turn has enabled loan officers and processing teams to enjoy the benefits of taking on a larger workload but with the efficiency every driven broker strives to reach.
Since Reverse Mortgages are not black and white, many traditional banks and loan originators are intimidated by them. Here is how Abdo breaks it down: “With a traditional mortgage, if your FICO score is above X, you qualify... if it's below X, you don't. Plain and simple. Well with a reverse, it's not that easy. There is no minimum FICO to qualify. The loan is not credit driven. And ratios like DTI (debt to income) and LTV (loan to value) also do not apply with reverse mortgages.”
Mortgage Technology For Senior Citizens
In addition to the clear advantages for loan brokers, Ennkar also touts the fact that its lending technology also eases seniors’ understanding of reverse mortgages. The vast majority of people seeking reverse mortgages are aged 62 or older, who might struggle with the clunky old-fashioned method of processing such loans.
“How can you incorporate technology into something that requires human interaction? And how can you incorporate technology with clients that arguably are some of the least experienced demographic when it comes to using technology? Well, we figured it out,” says Abdo.
Borrowers can upload a required document to their loan officer through a secure portal just as they would send a text message to their kids or grandkids. They can see the status of their loan just like you would see a progress bar on a download.
Ennkar eliminates the need for constant interaction between processors, originators, underwriters, funders, consumers, etc by organizing the entire loan process workflow into our internal task management systems. It's an approach other industries are replicating to increase their output, efficiency and client satisfaction.
The market-leading approach to reaping the benefits of modern technology to make reverse mortgages easier to secure is one reason why Ennkar continues to enjoy rapid growth and has now expanded to a roster of more than 100 employees throughout the United States.
A forward mortgage loan officer can submit a loan to Ennkar and have the Ennkar Technology take over. The Ennkar team and Ennkar technology helps the originator get the loan to the finish line with ease and reduce client touches.
Media Contact
Ennkar
media@ennkar.com
http://www.ennkar.com/
