While the terms of the deal were not disclosed, the Oakland Press reports the company will become a division of Ross Mortgage and will continue to operate under the Colonial Mortgage name in its Livonia, MI and Orlando, FL offices.
“A reverse mortgage is unique and is a niche product typically offered by only large national lenders or smaller specialty companies,” said Tim Ross, president of Ross Mortgage. “Our plan now is to leverage the expertise and resources that the Colonial Mortgage team possesses to become the leading reverse mortgage lender in the markets we serve,” he said.
John McParland, founder of Colonial Mortgage and now vice president of Ross Mortgage and director of the company’s reverse mortgage division said the potential for growth of reverse mortgages is considerable.
“As the baby boomer generation continues to age, the demand for reverse mortgages grows proportionately,” he said. “I look forward to coupling my company’s resources with those of the Ross Mortgage organization to focus on this growing market, using the large base of borrowers that Ross has built over the years as a great starting point.”
McParland told RMD the company has eight reverse mortgage originators and data from the US Department of Housing and Urban Development shows it has endorsed 41 HECMs during FY 2010.