One Reverse Mortgage announced today it has received approval to issue Ginnie Mae securities through GNMA’s HECM-Backed Securities program.
The San Diego-based reverse mortgage division of Quicken Loans is the largest reverse-only lender, and upon the recent exits of Wells Fargo and Bank of America from the business, will assume the second spot for reverse mortgage volume behind MetLife bank.
“We pursued the Ginnie Mae HMBS certification because it provides us with an incredible flexibility when originating loans,” Gregg Smith, president and chief operating officer of One Reverse told RMD in an email. “It also allows us the ability to retain servicing on those loans so we can ensure that after closing, our clients maintain the same high level of service that One Reverse Mortgage is known for.”
While Smith says the company does not have plans in the near term to enter the correspondent or wholesale markets, he says the HMBS program is a “must” if the company decides to compete in that space in the future.
For now, the company is seeing the GNMA approval as a growth opportunity, in allowing it to leverage the relationships it has formed with the investor community.
Currently, One Reverse operates a Detroit-based call center of 100 originators, and told RMD in May that it has plans to increase that number to 125 by year end.
“The HMBS program allows us to secure the best possible pricing for our clients, which was the primary reason we decided to undertake the lengthy certification process,” Smith said in a statement. “It is the natural next step in our mission to provide our clients with the best service and pricing in the reverse mortgage industry.”
The company, which will now bundle and sell reverse mortgage securities, is licensed in 46 states with plans to expand nationwide. It joins several other Ginnie Mae issuers in the industry, and is one of the first lenders to receive approval following changes in net worth requirements announced by Ginnie Mae earlier this year.
One Reverse closed 3,241 reverse mortgage loans in 2010, according to data from ReverseBase.
Written by Elizabeth Ecker