Following the exits of several Ginnie Mae issuers from the reverse mortgage business, Security One Lending today announced that it has received approval to issue Ginnie Mae HECM-backed mortgage securities (HMBS).
“The reverse mortgage industry has been through some big changes, and we’ve been working hard to restore stability and fill the void left by MetLife’s decision to exit the business,” said Torrey Larsen, president, Security One. “We have always been focused on the reverse mortgage space. This is our core business, and GNMA’s approval is a testament to our dedication and competency.”
Security One has demonstrated large-scale growth in recent weeks and months following the MetLife exit. It has hired more than 130 new employees to its reverse mortgage business including retail loan officers, wholesale executives and new Executive Vice President Bob Sivori.
In terms of volume, Security One has grown its business from 130 loans in June 2011 to 292 in May 2012, according to the latest data reported by Reverse Market Insight.
The company has worked over the past several months to build its execution plan in managing the requirements set by Ginnie Mae for HMBS issuers, and expects to begin issuing by October 1.
Written by Elizabeth Ecker