AAXA Mortgage announced that it entered into an agreement with First National Bank Of Kinmundy (FHNBK), a federally chartered national bank with roughly $31 million of assets according to the OCC.
Under the agreement, AAXA becomes a direct subsidiary of FHNBK and will expand its mortgage lending operations which includes reverse mortgages into all 50 states said a company statement.
"It’s an honor to align with a conservative 108 year old national bank and this alliance will open possibilities for success that would not otherwise be available in the current regulatory environment under the existing multi-state mortgage broker platform,” said Greg Gianoplus, AAXA CEO.
While becoming a subsidiary of a federally chartered bank requires the bank owns a controlling interest in the company, as the regulatory environment continues to favor non-brokers, many reverse mortgage companies will look at joining up with a bank.
AAXA’s reverse mortgage operation has been small over the last year but recently ramped up and has 18 reverse mortgage originators said John Smaldone, Senior Vice President and head of its reverse mortgage division.
The company has endorsed 12 HECMs in FY 2009 according to HUD data but AAXA told RMD that they have in excess of 75 HECMs in their pipeline.