In case you missed it… here’s what happened in reverse mortgage news this week.
Walter Investment Management Corp. announced it will purchase RMS for $120 million. The company (NYSE: WAC) said RMS presents a strong growth opportunity and aligns with its forward subsidiary, Green Tree. The transaction is expected to close in November. WAC’s share price surged on the announcement.
New retail leaders emerged, with call centers topping the list. The latest Department of Housing and Urban Development monthly data indicates American Advisors Group has grown its volume to the highest level of any lender in August, with One Reverse Mortgage, another call center-based lender, a close second based on monthly numbers.
Credit unions urged the CFPB not to make any sudden reverse mortgage moves. Substantial changes, the National Association of Federal Credit Unions (NAFCU) said in a letter to the CFPB, could deter participants from the market and place an unnecessary burden on those already participating.
Consumers Union also weighed in… saying reverse lenders have a fiduciary role. The group issued a statement in conjunction with California Advocates for Nursing Home Reform urging more reverse mortgage protectionsIncluded in the recommendations: make changes to reverse mortgage counseling, require originators and lead generators to register with the CFPB, and establish new standards for those obtaining and originating the loans.
Written by Elizabeth Ecker