Mortgage.Shop LLC announced on Tuesday it has become a banker and will fund its own reverse mortgages.
“Today is the first day that ReverseMortgage.Pro will do business as a HUD Approved Unconditional, HECM Direct Endorsement Lender,” said Brad Friedman, one of the founders of the company in a statement.
The company operates under the name ReverseMortgage.Pro and claims it’s one of the top reverse mortgage brokers in the country.
“Moving from a broker to a lender was a necessary step to take in order to remain competitive with other large lenders since the Dodd-Frank financial reform bill changed the broker compensation model, which in turn affected both the pricing options to the consumer and the profitability of a broker,” said Dennis Smith, a director with ReverseMortgage.Pro.
The company originates loans in Indiana and Virginia but plans to aggressively expand into a few neighboring states and hire additional originators said Smith.
“This move will allow us to keep our volume at a level that will maximize our premium earned on loans sold to our key investors, while also allowing us to be able to continue to provide great pricing options for our customers and top compensation levels for our employees.”