Reverse mortgage newcomer 360 Mortgage Group announced last week it would begin originating Home Equity Conversion Mortgage loans. Utilizing its experience as a forward lender as well as a targeted approach to the HECM for purchase loan product, the company says it is gearing up to be a top-3 lender within two years’ time.
“A lot of companies go into the reverse space and don’t understand it,” said 360 Mortgage Group’s Chief of Operations Andrew WeissMalik. “We plan to be a top-3 lender in the next two years.
The Austin, Texas-based company was founded in 2007 by Mark Greco and has since built a presence in the forward lending sector including servicing 99% of the loan it originates and issuing mortgage backed securities under Ginnie Mae’s program. It plans do to the same with its reverse business, having applied for approval to issue HECM-backed mortgage securities, and with plans to continue to service its reverse mortgage loan portfolio.
Retail, wholesale and correspondent channels comprise 360 Mortgage Group’s origination operations plans, which currently span several originators, processors and underwriters and more hires in the near future. The company’s forward business comprises about 10% retail with a majority of its originations in wholesale and third party originations.
“This has been a long term goal of ours,” WeissMalik says of the new reverse operations. “When we were able to hire Mike Suits, we were ready to launch.”
Among the company’s plans are a targeted approach to the HECM for purchase market, for which its team is pursuing relationships with homebuilders and referral partners.
“Many companies that focus on reverse tend to go after the refi demographic and are using all the same platforms,” he says. “We’re taking a multi-pronged approach. We’re actively looking for homebuilder partnerships and new relationships. This is a nationwide approach.”
Written by Elizabeth Ecker