KBC sold its US reverse mortgage portfolio and said it will free up roughly $800 million dollars of cash in a company statement.

The portfolio was previously held by a subsidiary of KBC Financial Products, which owns the Senior Lending Network. While KBC didn’t disclose the buyer, sources close to the deal tell RMD that Bank of America purchased the portfolio.   

During November 2009, KBC says it updated its strategic plan and decided to focus on retail and private banking customers and small and medium sized enterprises in its core markets in Belgium and Central and Eastern Europe. According to KBC, its reverse mortgage business wasn’t consistent with the new strategy and was “earmarked for divestment”.

In July 2009, KBC halted all of the Senior Lending Network’s applications and started looking for a buyer. The company said it will maintain a basic staffing level to ensure an orderly further dismantlement of the company.

Former executives at the Senior Lending Network recently joined Guardian First Funding Group, which added Robert Wagner as its company spokesperson.