Reverse mortgage newcomer Reverse Mortgage Funding is eyeing the potential to go public after raising $230 million in capital through the establishment of a real estate investment trust, the New York Times reports.
The company, led by industry veterans Craig Corn, David Peskin, Joe Demarkey and a host of other employees, many of whom worked formerly for MetLife’s reverse mortgage division, has been ramping up efforts of late to introduce and originate new reverse mortgage products in the market.
According to the Times report, the company has now raised about $230 million managed by FBR Capital Markets through the private sale of 15 million shares in the trust. Investors span hedge funds, individuals and customers. The end goal may be taking the company public, the Times writes.
“The private placement in February sets the stage for a potential initial public offering for the company,” the Times writes, citing regulatory filings and unnamed sources briefed on the details but not authorized to discuss them publicly.
“We ultimately want to be the public face of the reverse mortgage business,” Craig Corn, RMF’s CEO told the Times.
The company’s board includes membership by former HUD assistant secretary Brian Montgomery, the article points out.
The plans and their supporters depend largely on the senior demographic boom, the Times writes, pointing to recent industry changes meant to shore up the Federal Housing Administration’s financial position and alleviate consumer protection concerns.
Written by Elizabeth Ecker