Reverse Mortgage Lender Names New CEO
November 18th, 2009 | by admin Published in News, Reverse Mortgage | 8 Comments
Next Generation Financial Services announced that Robert Cannon has joined the company as its Chief Executive Officer. Cannon succeeds acting President Richard Pitbladdo, who will continue to serve as CFO.
Prior to joining NGFS, Cannon was a principal of the Equitas Group, a group of companies he founded that developed private label reverse mortgage programs for community banks and conduct reverse mortgage title closings.
“Rob is an ideal fit for NGFS,” said Daniel Schmedlen, General Counsel for NGFS parent company LTC Global, Inc. “He has comprehensive knowledge of the increasing regulatory compliance demands the industry faces and has experience in improving the operational efficiency and service quality of reverse mortgage operations, particularly through automation of workflow processes. Cannon has a solid vision of where the industry is heading and how NGFS can play a leading role.”
Over the last few weeks there has been lots of changes at NGFS. One of the company’s founders Brett Carter was escorted out of the office by police earlier this month and LTC Global increased its investment to a majority share of the company.
NGFS endorsed 692 HECMs in FY 2009.
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November 18th, 2009 at 9:32 am (#)
Looking into NGFS's business model is interesting. They employ financial planner's and individuals in the financial services industry, but tell them they do not have to get rid of any of thier licenses or stop selling thier own financial products. Isn't this why our industry is in the problem it is today? I wonder how this is regulated and how it is looked at in the eye's of HUD?
from thier website: 'Historically NGFS was built on a national platform focused on financial advisors.'
November 18th, 2009 at 10:30 am (#)
Glad I am not the only one who noticed that. They also don't seem to be licensed to offer reverse mortgages themselves, it is their parent company that they all work for who does all the loans. How is it that a company that is no longer majority owned by the licensed company continue to offer FHA loans?
November 19th, 2009 at 8:38 am (#)
Perhaps the new man will bring integrity to the operation. Perhaps HUD/FHA
will take a closer look at their activities. It is the quality and points of the
previous two comments which make Reverse Mortgage Daily readership
worthwhile.
November 19th, 2009 at 9:18 am (#)
These changes are largely related to underlying financial problems at the bank which was the original sponsor of NGFS. That bank, First Mariner, has suffered large portfolio losses from both residential and commercial loans and is currently operating under a consent decree from FDIC to bolster their capital base. The majority owner of the bank, Ed Hale, a prominent Baltimore developer, has also recently lost large real estate holding to foreclosure. Many observers in Baltimore do not believe the bank will survive in its present form. They have until spring 2010 to turn it around.
November 19th, 2009 at 10:03 am (#)
rmguy, I heard that they are looking for capital from a friend that works at an investment bank that was a approached by them. My understanding however is that for a company that is a subsidiary to use the parent companies licenses they must be majority owned by the parent company. It would seem that now that they are no longer majority owned by First Mariner, they would have no right to legally collect fees from the origination of reverse mortgages since they are not licensed themselves. If anybody knows that this is incorrect please respond since this would be valuable information to have for future negotiations.
November 19th, 2009 at 11:52 am (#)
jamesanelson,
Well said.
November 19th, 2009 at 3:56 pm (#)
all employees who originate loans do NOT work for ngfs
they are all bank employees, and the bank is a fnma/hud approved lender
November 19th, 2009 at 4:23 pm (#)
I understand that from the recruiting page on their site. My question was if NGFS is getting profit from the origination of reverse mortgages do they need to be majority owned by the licensed company that is actually originating the loan to receive the profit? If that is not required then that is great, its just like net branching with no licensing requirements.