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), which consists of greater than 75,000 loans totaling $12.1 billion in unpaid principal stability (UPB). That is in keeping with a communication alert the corporate despatched to its companions which was obtained by RMD.
The acquisition is seen as a milestone for RMF, and now positions the corporate as the highest private-sector reverse mortgage servicer in america in keeping with the corporate. Celink will proceed to sub-service reverse mortgages wherein RMF is the first servicer. When reached, representatives for RMF declined to touch upon the portfolio acquisition. Phrases for the deal haven’t been disclosed.
Representatives for AAG supplied some extra perception into the transaction, in addition to data for debtors affected by a possible change.
“Servicing transfers are a typical enterprise transaction within the mortgage {industry},” an AAG spokesperson informed RMD. “The MSR switch impacts most AAG reverse mortgage loans that funded by means of Might 31, 2021. The switch doesn’t alter the phrases of the loans or interrupt the servicing of these loans. Clients whose loans have been transferred have been notified mid-November concerning the switch and might name 1-833-801-0680 with any questions.”
Ed Robinson
Moreover, recently-appointed AAG President and COO Ed Robinson described the transaction as one which can permit the corporate to make larger investments within the buyer expertise.
“This transaction will facilitate AAG making disciplined investments into the core of our enterprise, specifically: expertise, enlargement of key initiatives, and the client expertise, as our clients are the center and soul of what drives us at AAG,” he mentioned.
RMF credit the connection the corporate maintains with Starwood Funding Group as a key driver of the corporate’s funding exercise within the reverse mortgage area. In December 2019, RMF mum or dad firm Reverse Mortgage Funding Belief (RMIT) introduced that it agreed to be acquired by an affiliate of Starwood, a world personal funding agency that’s centered on actual property investments, and which maintains greater than $60 billion of belongings beneath administration.
The Starwood affiliate accomplished the acquisition of RMIT/RMF in January 2021, and it was made clear that Starwood plans to place RMIT and RMF for larger ranges of development. Starwood was inspired by the rising prevalence of proprietary reverse mortgage merchandise in keeping with RMIT Chairman and CEO Craig Corn upon the unique announcement of the acquisition.
“That is an thrilling alternative for RMIT/RMF, as Starwood may be the catalyst to assist speed up our development,” Corn mentioned on the time. “Over the previous few years, Starwood has been an innovator in non-agency mortgages, serving to develop the {industry} into the success it’s at present. Starwood believes the personal reverse mortgage sector has an analogous alternative for development and believes RMF is the right platform to assist develop the market.”
RMF has made a number of notable reverse mortgage portfolio purchases up to now from different lenders. In late 2018, RMF acquired a $4 billion portfolio from now-defunct reverse mortgage lender Reside Effectively Monetary, an acquisition that positioned RMF because the proprietor of the biggest Dwelling Fairness Conversion Mortgage (HECM)-backed Securities (HMBS) issuance portfolio industry-wide on the time.
Greater than three years previous to the Reside Effectively buy, in Might 2015, RMF acquired the reverse mortgage portfolio from Solar West Mortgage Firm, which consisted of reverse mortgage servicing rights totaling $1.8 billion – the entire portfolio quantity of Solar West’s earlier holdings, as famous in Ginnie Mae knowledge from earlier that yr.
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