The Hindu Business Line : Software tool for reverse mortgage products

Chennai June 18 Cashing in on the banking community's enthusiasm for reverse mortgage products, Nucleus Software plans to launch a reverse mortgage solution for banks and financial organisations in the next three months.

Mr Prakash Pai, Head, Project Management Group, Nucleus Software, told Business Line that existing clients and some prospective ones had been briefed about the software and the company was waiting for feedback before signing up clients and rolling out the solution.

The reverse mortgage solution is being offered as an upgrade of Nucleus' `FinnOne' range of lending solutions and hence does not require additional efforts on the part of banks and financial institutions to integrate it with existing systems.

Without revealing how many clients the company expected to bag, Mr Pai said the product's selling cycle would be definitely longer than that of a loan product but demand would pick up once financial institutions educated the public about reverse mortgage. "This has been our experience in the US and Europe, and we expect the same to happen in India," he said.

Working method

Reverse mortgage facilitates one to get a fixed monthly income for a certain period against one's house, even as one continues living in it. Though, the lending institution owns the house, one can live in it till one's/one's spouse's death, after which legal heirs are offered the right to repay past payments. Failing this, the institution sells the house and after debiting its share, passes on the rest to the legal heirs.

Nucleus' solution facilitates automatic linkages with multiple partners involved in this process such as property valuators, property verifiers and professionals involved in related legal documentation.

"There is a predefined work flow that will schedule periodic visits and alerts for these partners and record their feedback about the visit and opinions about the property," said Mr Pai. The solution will also incorporate changes based on policy updates issued by the Government. It can approve a reverse mortgage request in about 30 minutes provided all necessary documentation is available at hand, he said.

The company is planning a capex of Rs 20 crore each towards infrastructure expansion and software development this fiscal and currently offers lending and cash management solutions to about 140 clients globally.

More Stories on : Housing Finance | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Egmont Group gets new member

Foreign currency loans: IOC may save Rs 150 cr on interest

Re gains 10 paise against dollar

Repco Bank sets up NBFC arm for funding small units

Software tool for reverse mortgage products

Centurion Bank bullish on growing in Gangtok

Bond prices fall on excess cash

SBI gets `BB' rating for perpetual bonds

Call rates down at 2.75-3%

`Stake sale in Intelenet will provide right impetus'

PNB drops equity offer plan

Global operations doing well, says ICICI Bank