Bank of America announced today that it has signed an agreement to acquire the reverse mortgage business of Seattle Mortgage Company, who is an indirect subsidiary of Seattle Financial Group, Inc. SMC is the third largest producer of federally backed reverse mortgages and gives BOA a huge section of the reverse mortgage market.
BOA has been piloting their own reverse mortgage products with customers in Arizona since November of this year. According to David Rupp, BOA Home Equity Executive who will oversee the integrated operation, “We will leverage Seattle Mortgage’s industry expertise with Bank of America’s leading distribution channels to achieve market leadership in this growing area of the financial services marketplace.” Along with a reverse mortgage portfolio of over $4 billion in outstanding balances, approximately 400 SMC employees will join BOA as well as a retail sales force of more than 200 sales associates in 25 states.
There was no word on any of the financial details of the transaction and according to the press release the deal is expected to close in the second quarter of 2007, pending regulatory approval.
To read a copy of the press release click the link below