Fairway Independent Mortgage Corp. Launches E-Closings for Reverse Mortgages
On Tuesday, Fairway Independent Mortgage Corp. unveiled its implementation of hybrid electronic closings (e-closings) specifically designed for reverse mortgages. This advancement marks the first time the company is integrating its extensive digital experience, utilized in its forward mortgage operations, into the reverse mortgage sector.
Enhancing Convenience for HECM Borrowers
With the new e-closing service, borrowers taking out Home Equity Conversion Mortgages (HECMs) will have the ability to review and electronically sign most loan documents from their homes beginning on the designated closing day at midnight. This initiative is aimed at making the mortgage process more user-friendly and efficient by allowing borrowers to familiarize themselves with the necessary details at their own pace, thereby reducing the time spent during in-person closings.
While the introduction of e-signatures aims to streamline the process, traditional “wet” signatures will still be necessary for certain documents due to U.S. Department of Housing and Urban Development (HUD) regulations. Additionally, borrowers will have the flexibility to opt for a fully paper-based closing process if they prefer.
Industry Impact and Technological Advancement
Peter Sciandra, Executive Vice President of Reverse Lending Operations at Fairway, emphasized the company’s commitment to driving digital innovation in the mortgage industry. “Fairway has led the way in digital mortgage closings, completing over 200,000 e-closings for our forward mortgages since 2017,” he stated. “Now, we’re bringing that same innovation and efficiency to reverse mortgages, streamlining the process and aligning it more closely with forward lending.”
Tom Evans, the Executive Vice President of Marketing and Technology for reverse at Fairway, noted that the move is part of a broader strategy to integrate advanced technologies into the reverse mortgage sector, highlighting that older homeowners are increasingly adept at using technology.
Addressing Client Needs and Expectations
From a local perspective, Christine Jensen, a branch manager and Senior Vice President for the company’s Central Region North, shared insights on how e-closing options can alleviate the challenges faced by older clients: “We have reduced manual signatures by over half, simplifying the process and mitigating the strain on our 62+ clients.” This feedback underscores the practical benefits that these technological advancements can provide on an individual level.
Sciandra expressed hope that Fairway’s pioneering efforts will set a precedent for the broader industry. “Our goal isn’t just to advance Fairway — it’s to elevate the industry,” he said, indicating a desire to collaborate with investors and title partners to enhance the offerings available to reverse mortgage borrowers.
Future Outlook and Broader Integration of Technology
Fairway plans to extend its e-closing capabilities to additional loan products, including home equity lines of credit (HELOCs), second liens, and bridge loans. Teri Pansing, Senior Vice President of Corporate Closing at Fairway, noted that 90% of the company’s closings now incorporate some form of digital technology.
Dan Ventura, President of Reverse Lending at Fairway, emphasized the importance of ensuring that seniors have access to the same technological advancements that are reshaping the wider mortgage market while preserving the personal touch that clients expect.
As Fairway enhances its digital capabilities within reverse mortgages, the company aims to spark a larger conversation about leveraging technology to improve processes across the industry. This initiative aligns with Fairway’s commitment to expand its footprint in the reverse mortgage market in the coming year.
