Reverse Mortgage Funding has announced it has been acquired by Reverse Mortgage Investment Trust—a REIT that has recently completed a private quity offering, raising $230 million in capital. Terms of the acquisition were not disclosed.
The REIT’s primary focus is on investing in FHA-insured reverse mortgages and government-insured reverse mortgage backed securities, following its launch in 2013. Its acquisition of Reverse Mortgage Funding gives the company access to RMF’s growing originations platform.
RMF, founded in 2012 by industry veterans including several former MetLife Bank reverse mortgage executives, has been ramping up a growing originations network via its headquarters in New York and New Jersey.
Through the REIT acquisition, RMF will be owned by the REIT as its parent company, with access to capital that will support origination and servicing strategy to “significantly build market share and grow the overall market,” the company said in a statement.
Craig Corn, who serves as RMF CEO, will continue in his role and will also continue as chairman and CEO of Reverse Mortgage Investment Trust (RMIT). The company is also led by Robert Sivori and David Peskin.
“This transaction helps fulfill our strategic vision of having a business model consisting of two major activities, reverse mortgage banking and portfolio management,” Corn said. “This allows us to bring the most innovative products and services to market, offering America’s seniors more options to fund their retirement.”
The company’s executives plan to take the REIT public later this year, as stated in a registration statement filed in early 2014.
RMF has launched several new products to date in 2014, including the HECM MAX5, an adjustable rate reverse mortgage with a lifetime cap of 5% over the initial rate.
Written by Elizabeth EckerT