Enhancing Reverse Mortgage Options: Insights from Tane Cabe

Tane Cabe, Head of Reverse Division at Fairway Independent Mortgage, recently shared his insights with HousingWire’s Reverse Mortgage Daily (RMD) about the integration of proprietary reverse mortgage products into their existing visualization and conversion tools. This new approach seeks to meet the evolving needs of clients and borrowers in the reverse mortgage space.

Meeting Client Demands for Proprietary Products

Existing clients have shown appreciation for the Federal Housing Administration (FHA)-backed Home Equity Conversion Mortgage (HECM). However, they have expressed a desire for additional proprietary options. Cabe noted, “The challenge with that is there’s so many moving parts. [Principal limit factors] change and programs change often, so it’s difficult to tackle that one,” indicating the complexities involved in product integration.

Integrating Smartfi’s Choice Fixed Product

To address this demand, Fairway has partnered with Smartfi to introduce the Choice Fixed product. This proprietary option features a maximum loan limit of $4 million, similar to other offerings in the market. It also caters to a diverse age range for eligibility, requiring a minimum age of 55 in some states, while in others, the age requirement may rise to 60 or 62. Additionally, it streamlines the approval process for condominiums, making it available in 22 states plus the District of Columbia.

Seamless Comparison Capabilities

Cabe emphasized the straightforwardness of integrating this product into the existing platform. Lenders and brokers currently using Smartfi and the HECM Tool can visualize and compare the Choice Fixed product alongside traditional HECM loans. “They can compare a HECM to a Choice Fixed product, or just a standalone Choice Fixed product to standard reverse mortgages, refinances and purchases,” Cabe explained. The product’s lack of a mandatory minimum loan amount allows it to compete directly with the HECM.

Industry Leaders on the Benefits

Kim Smith, Senior Vice President of Wholesale Lending at Smartfi, expressed enthusiasm over the new collaboration, stating, “We’re incredibly excited to see Choice Fixed now available within the HECM Tool platform.” Joshua Evink, Vice President of Wholesale at Smartfi, added that such visualization options address requests from brokers, allowing them to illustrate how reverse mortgages can be effectively utilized based on individual financial situations.

Shaping the Future of Reverse Mortgages

In discussing the integration process with Smartfi, Cabe remarked on the importance of normalizing reverse mortgages as a mainstream financial product. He stressed, “The opportunity to make reverse mortgages mainstream lies in having it be a normal product,” suggesting that making these tools accessible can help bridge the gap between forward and reverse mortgage offerings.

Looking Ahead: New Training and Outreach

Cabe also shared insights on future strategies aimed at enhancing the educational aspects of reverse mortgages. “In the first quarter, we had major training for our users,” he noted, highlighting the implementation of a 12-week accelerator program that focused on converting past clients and educating referral partners and financial advisers.

With ongoing conversations aimed at further integrating diverse products into the HECM Tool, Cabe is optimistic about the industry’s progressive embrace of technology. He concluded, “When lenders — including big forward shops that offer reverse — can change and alter their sales process… that’s where I think the business can really take off and impact retirees.”