Walter Investment Management Corp. (NYSE: WAC), parent company of Reverse Mortgage Solutions, announced Tuesday it is acquiring $12.2 billion in reverse mortgage servicing rights from Wells Fargo (NYSE: WFC).
The acquisition doubles the size of RMS’s servicing portfolio and includes more than 76,000 loans. The loans are expected to transfer to RMS during the third quarter of 2013.
The company says the acquisition will help to establish its position as a leader in the reverse mortgage market.
“This transaction, which doubles the size of our serviced book, will allow us to leverage our considerable capabilities in the reverse mortgage sector as we continue to see a significant growth opportunity in the sectors,” said Mark J. O’Brien, chairman and CEO of Walter Investment.
Terms of the acquisition were not disclosed.
Update: Walter announced it was acquiring the servicing rights, but did not announce such a transaction has closed.
Written by Elizabeth Ecker