UBS Makes Move Into Warehousing Reverse Mortgages

While certain big banks recently announced they were exiting the reverse mortgage space, UBS says it’s getting back into the business by providing warehouse lines to lenders.

The company quietly added its first client in May and is looking for new customers to add to its roster.

“We’re looking to add more people and are targeting relationships that we’ve had in past,” said Kimberly Browne, Executive Director at UBS Securities Co. The company is looking for lenders with $10 million in tangible net worth, but it’s willing to consider others if they have extensive experience.

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Prior to the subprime crisis, UBS was an active investor in HECM product. As of right now, it isn’t looking to get back into purchasing whole loans, and it sees that as an advantage over most of the competition. Correspondent lenders like MetLife and Sun West offer warehouse lines to customers, but often require that the loans be delivered to their own channels.

ReverseVision is the first company to built its platform to interface and submit loans directly to UBS.

“We are just a small wheel in the industry, but by adding UBS as a warehouse lender to our list of interfaces we do what we always have done best, bring great companies together,” said Thomas Martignoni, CEO of ReverseVision in an email to RMD.

Overall, reverse mortgages are a small part of UBS’s warehouse business, with most coming from “forward” government programs, USDA, and non-conforming jumbo products. Browne told RMD it can help customers expand their relationships with other investors like REITs that are looking for non-conforming products. However, don’t expect proprietary reverse mortgage products in the near future, says Browne.

“[Jumbo reverse mortgages] are pretty far away, not this year or early next,” she said.

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  • This is generally a very good sign for the industry.  Warehouse lenders will not bank products that represent collateral with liquidity or valuation concerns.  They apparently believe the future is good for well capitalized mortgage bankers (non-banks).   

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