Only two months after VirtualBank Seniors Lending Group returned to the reverse mortgage business, it’s closing its wholesale channel and keeping its small retail footprint said management in a conversation with RMD.
“Upon the recommendation of the senior management team, VirtualBank Seniors Lending Group has made the strategic decision to shift from a wholesale and retail reverse mortgage origination model to one focused solely on retail originations,” said the company.
“The wholesale management team has left VirtualBank Seniors Lending Group on extremely good terms and we look forward to working together with them in the future on various opportunities in both the forward and reverse mortgage areas.”
During our conversation, it’s clear the company felt the wholesale business has gotten extremely competitive in the last month and is part of the reason it decided to exit. With lenders releasing updated HECM products, dramatic pricing changes, and volume trending lower they weren’t sure there was a need for another wholesale lender in the marketplace.
VirtualBank originally entered the business in 2007 offering a suite of proprietary products to address the needs of borrowers who could benefit from a higher loan limit. However, as the secondary market fell apart so did Virtual Bank and it left the industry only five months later.