Walter Investment Management Corp. is getting out of the wholesale business for forward lending through its Green Tree subsidiary.
The company confirmed Wednesday following early reports that Green Tree would exist the wholesale mortgage business, and would close the channel by April. The company’s reverse mortgage wholesale operations will continue via Walter’s RMS and Security One subsidiaries, Walter confirmed to RMD.
The forward wholesale business “has been a relatively small part of the company’s originations business,” Walter said in a press release, citing funded volumes of less than $1 billion in the nine months ending September 30, 2013. The wholesale business was not expected to impact earnings for 2013.
Expected to be competed by April, the exit affected 60 employees, Walter said.
“Walter Investment remains committed to growing its origination business through its core retention, retail and correspondent channels,” the company said.
Walter last year acquired Reverse Mortgage Solutions for $122 million and later purchased Security One Lending for up to $31 million. Through those companies, Walter operates reverse mortgage originations channels including retail and wholesale.
Combined, the companies represented the greatest number of reverse mortgage originations among all lenders in January at 954 loans according to the latest report from Reverse Market Insight.
Written by Elizabeth Ecker