First National Bank announced today that it has decided to discontinue its reverse mortgage business and shift its focus back to traditional forward lending.
The top-10 reverse mortgage lender has grown its production from fewer than 70 loans in 2010 to more 1,188 loans to date over the course of the last 12 months. FNB also represented a recent reverse mortgage success story in growing its business more than 100% year-over-year for the first four months of 2012.
“Origination of Reverse Mortgages has been a valuable and profitable business line for First National Bank,” the company said in a statement provided to RMD. “We are proud of the great contribution our reverse team makes to seniors and to the Bank.”
The company said it continues its focus on mortgage lending, but will close its reverse mortgage business.
“Management and the Board of Directors have determined, after a careful strategic review, to discontinue offering the reverse mortgage product,” the company said. “Mortgage lending will continue to be a core product; however, the focus will be on traditional forward mortgage lending. Look for refinements to our process and delivery system.”
The company has been devoting resources to the growth of its business, most recently in launching a reverse mortgage production center in late 2011, including new hires in Kennesaw, Georgia.
When asked whether the reverse mortgage team will remain with the company, FNB had not responded as of press time. However, several sources have indicated to RMD a potential deal may be in the works with Orlando, Florida-based Proficio Mortgage.
Written by Elizabeth Ecker