Proficio Winding Down Reverse Mortgage Operations

Top-25 industry lender Proficio Mortgage Ventures has decided to “wind down” its reverse mortgage operations, RMD has learned.

“As a business matter, Proficio has made the decision to wind down the reverse mortgage operations,” Proficio President and Chief Operating Officer Steve Chapton told RMD via email.

Proficio Mortgage Ventures is a wholly-owned subsidiary of Proficio Bank, a state chartered bank headquartered in Salt Lake City, Utah. The company’s reverse mortgage division is based in Henderson, Nev.

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The extent to which Proficio plans to wind down its reverse mortgage operations remains unclear.

So far in 2016, Proficio has totaled 80 HECM endorsements through March, a 77% drop from its year-ago volume, when the company reported 350 loans during the first three months of 2015, according to industry data tracked by Reverse Market Insight.

Written by Jason Oliva

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  • Some would have us believe that everything is just rosy in the industry. That the volume drop is nothing to write home about. It is a last few years thing and nothing more.

    No, this is not a cry that the sky is falling but that does not mean that things are rosy. It seems in business, leaders and sales management want it to be one way or the other and even if the sky is falling in, it isn’t falling on us.

    The truth is, we are experiencing the worst start to any fiscal or calendar year in over a decade. Sales are over 50% worse than at the peak of this decade. While the sky may not be falling in, that does not mean we do not have troubles, substantial troubles.

    Things are not going to turn around by hoping if no one brings them up, then they will get better. There are three basic ways to face trouble: Ignore it (our current approach), dwell on them, or constructively try to fix them. Even though we may not be talking about them, that does not mean the industry is not dwelling on them. We currently not trying to constructively fix them. By and large we ignore it in the open and only discuss them as if in fear behind closed doors.

    A few years ago Proficio was the up and comer. It was growing at such a rapid pace some expected it to be in the top three before the end of this decade. So if the FDIC did not require the closure of Proficio’s origination operations, why is it closing down? The industry will not address it the reason why. Like the defensive guard who gets his leg broken in college football, the coach would prefer if the healing player wasn’t around the other team players until at least the leg was completely healed.

    So as when B of A, Wells, and MetLife left the industry, don’t expect any open analysis on the issues resulting in the closure for some time to come, it then, unless RMD does.

  • Thomas,

    Buying good processors is not as difficult as you seem to portray. There are many contract processors available, even some experienced in HECMs.

    • If your doing business in 50 States you would need 50 different contract processors;one in each state and most companies will not allow this plus Business Development Managers AKA overpaid recruiters don`t care.The Federally licensed loan officer seams to be a loophole IN THIS CASE to be exploited by american capitalism

      • Thomas,

        Lenders, even banks, can pick and choose the states in which they will originate. They do not have to accept applications in states they choose not to do business in as long as that rejection is not discriminatory.

        I have no idea what you mean when you write: “The Federally licensed loan officer seams to be a loophole IN THIS CASE to be exploited by american capitalism.” Are you referring to federal registrants versus NMLS state licensees?

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