Mutual of Omaha distribution channel for community banks includes reverse mortgages

Mutual of Omaha Mortgage, which retains a spot on the list of the top 10 reverse mortgage originators in the country, has announced the launch of a new initiative called “Mutual of Omaha Mortgage Services” which will aim to bring its residential mortgage products to the banks and credit unions to support its distribution efforts.

This will also include reverse mortgages according to the company’s announcement and company representatives who spoke about the move with RMD.

Expanding distribution

The addition of these capabilities to community banks under the auspices of Mutual of Omaha is designed to allow regional banks and credit unions to expand their offerings in the areas of residential mortgages, according to a company announcement.

“Mutual of Omaha Mortgage Services provides community banks and credit unions with the best origination services, marketing and operational support, and access to a full menu of mortgage products, including FHA/VA and reverse mortgages” , says the ad. “The new service enables lending institutions to grow their portfolio of client solutions, improve commission revenue and reduce risk, so they can scale their business affordably and efficiently.”

The division will be led by channel managers Daniel Diaddigo and Jared Ward, according to the announcement.

“The cost and risk associated with scaling a residential lending platform can be prohibitive,” Diaddigo said in a statement. “Mutual of Omaha Mortgage Services offers lending institutions the ability to collect fee income without building heavy infrastructure.

“Through Mutual of Omaha Mortgage Services, we can give banks and credit unions a frictionless path to offering home loans to their customers and members,” added Ward.

Interested organizations can submit an application through the Mutual of Omaha Mortgage Services website and will be contacted by a representative if they choose to pursue such a relationship.

What this could mean for reverse mortgages

Distribution has long been a topic of interest and concern for the reverse mortgage industry, especially since the major banking institutions exited the business. Bank of America exited the reverse mortgage business in early 2011, and in the same year Wells Fargo staggered its exits from the company’s wholesale and retail channels over a few months. By the time Wells Fargo left the retail channel, it was the industry’s largest lender, registering 16,213 units in 2010. In 2012, MetLife followed suit, exiting the industry.

Asked about the possibility of opening the distribution of reverse mortgages, Diaddigo told RMD that reverse mortgages will be among the offers available in this new business priority.

“Our extensive product line includes reverse mortgages,” he said. “Our reverse division has more than 200 loan officers who meet with customers face-to-face in 48 states. We believe HECMs are a tool that banks and credit unions can deploy to facilitate customer retention. […] Our Mortgage Services Channel provides origination services to banks and credit unions. Banks and credit unions will have the advantage of accessing our full menu of products, including HECMs.

In support of Diaddigo’s comments, Mutual of Omaha’s Director of Business Integration, Shelley Giordano, also indicated that this new channel has the potential to directly benefit the distribution goals of the company in particular as well as to the broader reverse mortgage industry.

“Clingy” Customers

“I agree with Daniel that offering a full menu of mortgage solutions benefits customer retention for banks,” Giordano told RMD. “And as you said, there are very few reverse mortgages in banks and credit unions, especially since the exit of BofA and Wells Fargo. So there is a void that Mutual of Omaha Mortgage can to fill in.

Giordano also mentions the brand value of Mutual of Omaha itself as a potential factor among potential new customers, since name recognition dates back to 1909, adding that the launch of the division could also impact loyalty. client.

“It may only be anecdotal, but we in the mortgage industry have learned that customers who have mortgages with an entity (or partnership with the mortgage provider in this case) are “tights”,” she explains. “In other words, customers feel a sense of belonging to the bank/credit union that helped finance their most important asset and they tend to think hard before jumping on another ship. Every financial service provider wants “loyal” customers.

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