WSFS Financial Corporation (Nasdaq: WSFS), the parent company of Wilmington Savings Fund Society, FSB (WSFS Bank), reported breakeven net income for the fourth quarter and a loss per common share of $0.09 after preferred stock dividends.
WSFS also completed the wind-down of 1st Reverse Financial Services, its national reverse mortgage subsidiary which contributed a loss of $363,000 or $0.03 per common share in the fourth quarter.
During the fourth quarter of 2009, 1st Reverse reported a pre-tax loss of $363,000 and recorded $219,000 in fee income along with expenses of $582,000 during the quarter.
WSFS announced it would start winding down 1st Reverse last year. According to HUD data, the company endorsed 265 HECMs in 2009. Check out its listing at ReverseBase for more information.
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[wpli_login_link redirect="https://reversemortgagedaily.com/2010/01/29/wsfs-completes-wind-down-of-reverse-mortgage-subsidiary/"]
This entity was at the center of controversy from the day it started. Some advocated their position of providing proprietary products at higher costs but lower origination fees. Others argued for their technique of eking out as much net principal limit as possible in the HECM process. What was very clear is that their products provided high profits to the WSFS group at the loss of those correspondents who needed their products. Low demand killed this entity. The question is why was there so little demand?
At first some argued eloquently for maximizing profits as this firm did. Some viewed this entity as the smart guy and all of the rest of us as the fall guys. Most assumed their operating principles were fundamentally based on one all encompassing principle, greed.
The sad thing is that they are no more.
So is WSFS still originating their own RMs?
Yes, WSFS retail division is alive and well.
As for The Cynic's comments, if 1st Reverse products provided such high profits for the Bank do you honestly think they would have been shut down? And yes, it is sad that they are no more. They provided a service to the smaller broker firms that was not readily available elsewhere. I wish them all well.
Trish Kauker
VP Reverse Mortgage
WSFS Bank
Yes, WSFS retail division is alive and well. rnAs for The Cynic’s comments, if 1st Reverse products provided such high profits for the Bank do you honestly think they would have been shut down? And yes, it is sad that they are no more. They provided a service to the smaller broker firms that was not readily available elsewhere. I wish them all well.rnrnTrish KaukerrnVP Reverse MortgagernWSFS Bank