NetOxygen Integrates Reverse Mortgages

BRENTWOOD, Tenn. - Gallagher Financial Systems, Inc. (GFS), a leader in enterprise loan origination technology, announced that it now supports reverse mortgage products in the newest version of its flagship product, NetOxygen. Reverse mortgages are loan products that allow older homeowners to transform part of the equity in their homes into tax-free income. In such products, the payment stream is “reversed,” and lenders issue payments to the borrower based on their age and the equity of the property until they no longer occupy the property as their primary residence. The added flexibility of allowing the borrower to select and change their payment option allows older borrowers to adjust their mortgage as needed. Borrowers can select from tenure payments, line of credit payments, modified tenure payments, term payments, and modified term payments.

“There is definitely a trend toward reverse mortgages in the lending market and among our customers,” said Liliana Nigrelli, Vice President of Product Services for GFS, “so implementing the ability to take a reverse mortgage loan application in NetOxygen was a natural step.” Nigrelli also points out that NetOxygen is well-suited for implementing reverse mortgage functionality. “While some technology vendors focus the whole of their efforts to produce a reverse mortgage solution, we integrated reverse mortgages into NetOxygen’s existing baseline system, an enterprise-wide solution.”

As part of its baseline system, NetOxygen will now be able to handle the data entry and calculations required of the major reverse mortgage products, including FHA’s Home Equity Conversion Mortgage (HECM). Reverse mortgages are completely integrated into NetOxygen’s workflow, so no additional third-party interfaces are needed. NetOxygen also populates and generates all needed reverse mortgage documents, including the Amortization Schedule, the Uniform Residential Loan Application, the Total Annual Loan Cost Disclosure, and the Important Terms Disclosure documents. Also, lenders using NetOxygen to process reverse mortgage products have the benefit of accessing NetOxygen staples in the process, such as its intelligent service ordering system, contact management system, scenario analysis mechanisms, and business rules management systems.

“We are excited to offer this new functionality to our customers,” said Nigrelli. “According to the National Reverse Mortgage Lenders Association (NRMLA)/Hollister Reverse Mortgage Market Index (RMMI), Americans age 62 or older hold an estimated $4.3 trillion in home equity. With just over 300,000 reverse mortgage loans originated in the last 5 years, only 1 percent of the market has been penetrated. This is a huge untapped market for our customers.”

Contact
Joey McDuffee
Vice President, Sales and Marketing
Gallagher Financial Systems
1.800.989.9996 or 615.221.7358

About Gallagher Financial Systems
Founded in 1985, Gallagher Financial Systems is one of the nation's largest residential loan origination systems providers. Gallagher is headquartered in South Miami, Fla., with its national operations center in Brentwood, Tenn. Gallagher’s NetOxygen architecture allows lenders to improve efficiencies via dynamic workflow routing and rule-driven, streamlined business processes. NetOxygen was designed to handle all aspects of the lending process for all channels and loan types using a component-based, end-to-end system, which allows enterprise-wide data access for improved customer service. Gallagher also provides an off-the-shelf solution that can be tailored to meet technological and business challenges that arise in an ever-changing industry.