Despite long maintaining a reputation as being behind the times of technology development — whether that is due to a perception of being slow-to-adopt emerging technologies, or due to regulatory compliance concerns — one top 10 reverse mortgage lender has now rolled out hybrid e-closing processes for its Home Equity Conversion Mortgage (HECM) business.
Fairway Independent Mortgage Corp. announced the incorporation of hybrid e-closings for reverse mortgages on Tuesday, aiming to incorporate its experience with the technology on the forward side of the mortgage business into its reverse mortgage division for the first time.
“Fairway now enables HECM borrowers to e-sign most loan documents before closing, making the process more efficient, convenient and borrower-friendly,” the company said.
An option rooted in hopes for the industry
The company’s HECM borrowers will now be able to “securely review and e-sign most documents from home,” the company said, beginning at midnight on the appointed closing day. This is a priority since it will allow borrowers to “absorb the details at their own pace,” while also serving to reduce time spent at the closing table, the company said.
The process will not do away with “wet” signatures entirely, since certain U.S. Department of Housing and Urban Development (HUD) rules still require such signatures on certain documents, the company explained. And the e-closing option will also be just that, an option, since borrowers can choose an all-paper process if they’re more comfortable with it.
“Fairway has led the way in digital mortgage closings, completing over 200,000 e-closings for our forward mortgages since 2017,” said Peter Sciandra, EVP of reverse lending operations and secondary at Fairway. “Now, we’re bringing that same innovation and efficiency to reverse mortgages, streamlining the process and aligning it more closely with forward lending.”
The company previously explained for HousingWire’s Reverse Mortgage Daily (RMD) at the end of last year that technology development would be a key priority for the company in 2025, and this process update fits into those broader goals. This is according to Tom Evans, EVP of marketing and technology for reverse at Fairway.
“We’re breaking the myth that reverse mortgage borrowers aren’t tech-savvy,” Evans said. “Older homeowners are embracing technology, and we’re committed to providing them with the same digital advancements available to forward mortgage borrowers.”
Enhancing borrower experience, getting out of ‘the dark ages’
The company also included the perspective of one of its branch managers regarding the difference the addition of an e-closing process has made on a more individual level. Christine Jensen, a branch manager and reverse lending SVP for the company’s “Central Region North” explained that her office has “reduced manual signatures by over half, simplifying the process and reducing the strain on our 62+ clients.”
Sciandra added that his hope is that Fairway’s approach to embracing such technology is something that can be adopted industry-wide.
“Our goal isn’t just to advance Fairway — it’s to elevate the industry,” he said. “By working with our investors, title partners and technology partners, we’re creating a mortgage landscape where reverse mortgage borrowers have access to the same forward-thinking digital solutions as traditional borrowers.”
Sciandra is uniquely suited to help facilitate that broader industry conversation, since he serves as Fairway’s representative on the board of the National Reverse Mortgage Lenders Association (NRMLA). He previously telegraphed the hope of incorporating new tech into the lender’s processes in a conversation with RMD in December.
“We’re still, unfortunately, in the dark ages in many respects as far as technology goes,” Sciandra said at the time. “So we are looking at some things, working with some of the software vendors out there to maybe make some changes with how things are done.”
Broader tech integration
E-closings are also being integrated into other loan products the company offers, including home equity lines of credit (HELOCs), second liens and bridge loans. Teri Pansing, SVP of corporate closing at Fairway, said the company has moved to a point where 90% of its closings have at least some digital component.
Incorporating reverse mortgages into this was seen as a priority for Dan Ventura, Fairway’s president of reverse lending.
“As we push the boundaries of digital mortgage solutions, we’re ensuring seniors enjoy the same advancements reshaping the broader mortgage industry — without sacrificing the personal touch they deserve,” he said.
When reached, a representative for Fairway told RMD that the hope is that this begins an industry-wide conversation about incorporating more technology tools into reverse mortgage loan processes.
Fairway previously explained that in addition to hoping for the incorporation of more tech into the industry, the company is aiming to expand its reverse mortgage presence this year.
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