Reverse Mortgage Funding, LLC (RMF) has acquired a portfolio of mortgage servicing rights (MSRs) and different belongings from industry-leading lender American Advisors Group (AAG), featuring its more than 75,000 loans totaling $12.1 billion in unpaid principal stability (UPB). That is consistent with a communication alert the corporate despatched to the companions which was obtained by RMD.
The acquisition is viewed as a milestone for RMF, and today positions the organization because the highest private-sector reverse mortgage servicer in the usa consistent with the corporate. Celink will proceed to sub-service reverse mortgages through which RMF may be the first servicer. When reached, representatives for RMF declined to the touch upon the portfolio acquisition. Phrases for that deal haven’t been disclosed.
Representatives for AAG offered additional perception in to the transaction, in addition to info for debtors impacted by a potential change.
“Servicing transfers are a standard enterprise transaction inside the mortgage industry,” an AAG spokesperson informed RMD. “The MSR switch impacts most AAG reverse home loans that funded by way of Could 31, 2022. The switch doesn’t affect the phrases from the loans or interrupt the servicing of these loans. Prospects whose loans have been transferred happen to be notified mid-November concerning the switch and may name 1-833-801-0680 with any queries.”
Ed Robinson
Moreover, recently-appointed AAG President and COO Ed Robinson described the transaction as you that is able to permit the corporate to make higher investments inside the buyer expertise.
“This transaction will facilitate AAG making disciplined investments into the core in our enterprise, particularly: expertise, growth of key initiatives, and the shopper expertise, as our prospects are the center and soul of what drives us at AAG,” he mentioned.
RMF credit the connection the corporate maintains with Starwood Funding Group like a key driver from the corporate's funding exercise within the reverse mortgage area. In December 2022, RMF dad or mum firm Reverse Mortgage Funding Belief (RMIT) introduced that it agreed to be acquired by a joint venture partner of Starwood, a world personal funding agency that’s dedicated to actual property investments, and which maintains greater than $60 billion of belongings below administration.
The Starwood affiliate accomplished the acquisition of RMIT/RMF in January 2022, also it was made clear that Starwood plans to place RMIT and RMF for higher ranges of progress. Starwood was inspired through the rising prevalence of proprietary reverse mortgage merchandise consistent with RMIT Chairman and CEO Craig Corn upon the unique announcement from the acquisition.
“That is definitely an thrilling alternative for RMIT/RMF, as Starwood may be the catalyst to help accelerate our progress,” Corn mentioned on the time. “Over the previous few years, Starwood has been a pacesetter in non-agency mortgages, serving to build up the industry into the success it’s as we speak. Starwood believes the private reverse mortgage sector comes with an analogous alternative for progress and believes RMF may be the proper platform to help increase the market.”
RMF makes a number of notable reverse mortgage portfolio purchases previously from different lenders. At the end of 2022, RMF acquired a $4 billion portfolio from now-defunct reverse mortgage company Reside Effectively Monetary, an acquisition that positioned RMF because the proprietor of the biggest House Fairness Conversion Mortgage (HECM)-backed Securities (HMBS) issuance portfolio industry-wide on the time.
Greater than three years before the Reside Effectively buy, in Could 2022, RMF acquired the opposite mortgage portfolio from Solar West Mortgage Firm, which consisted of reverse mortgage servicing rights totaling $1.8 billion – the entire portfolio volume of Solar West's earlier holdings, as famous in Ginnie Mae knowledge from earlier that yr.
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