The owner of top-10 reverse mortgage lender Urban Financial of America is making a major play into the forward lending space through acquisitions announced Monday.
Finance of America Holdings, a Blackstone (NYSE: BX) portfolio company, has completed the acquisitions of several companies: Gateway Funding Diversified Mortgage services, Pinnacle Capital Mortgage and certain assets and operations of PMAC Lending Services. Finance of America Holdings owns Urban Financial following its $80 million sale in 2013.
The acquisitions make the holding company one of the largest non-bank originators in the country, with licensing in more than 45 states. The lending services span retail, wholesale and correspondent operations, as well as servicing capabilities, and will include 300 retail lending branches, and five wholesale and correspondent centers.
The company will encompass 1,400 loan officers among its 3,000-plus employees, with company leadership seeing the move as positioning it to compete among the nation’s largest.
“We see great opportunity in the U.S. lending and resulting investment space,” said Brian Libman, Executive Chairman of Finance of America Holdings LLC. “The people and operations associated with these businesses, the capital of our partners and strategic items yet to be announced should provide us with a significant and enduring edge in this highly competitive industry.”
Urban Financial of America has long held a position among the country’s largest reverse mortgage lenders by volume via its wholesale lending unit. The company has also ramped up retail operations of late and has expanded its branch network nationwide.
Written by Elizabeth Ecker