Longbridge Financial, a reverse mortgage lender based in Mahwah, New Jersey, is receiving investment from Ellington Financial and Home Point that will allow it to target growth in reverse mortgage operations.
The company, which has an existing investment partnership with Ellington Financial and previously had a partnership with Bank of New York Mellon, says it will use the investment to grow its business channels including originations and servicing.
“Longbridge will be focusing on both areas equally, as well as working to expand the reverse mortgage market by working with financial planners and institutions that have not traditionally been involved with reverse mortgages,” says Chris Mayer, Longbridge president and CEO.
The terms of the investments were not disclosed.
Home Point operates an existing reverse mortgage business after acquiring Maverick Funding in 2014, but the two entities will remain separate, Longbridge says.
“Home Point and Longbridge will continue to operate as separate licensed entities, although we will look for opportunities to leverage our strengths and synergies where they exist,” Mayer tells RMD.
Longbridge has been an originator of reverse mortgages since its founding in 2012, and has been servicing its own loans as of earlier this year. It first received investment from Ellington in September 2014.
Home Point leadership said it looks forward to leveraging Longbridge’s expertise going forward.
“Today’s announcement reinforces Home Point’s continued commitment to the Reverse channel and I look forward to working together to continue our growth nationwide, strengthening our offerings and improving our experience to the market and senior community,” says Josh Shein, senior director, Home Point Financial. “I am excited to leverage our strengths and synergies to grow Home Point Financial’s Reverse team and continue our industry leadership.”
The company’s CEO echoed the sentiments of his colleagues.
“We are excited about the opportunity to invest in Longbridge,” said Willie Newman, CEO of Home Point in a press release. “Chris Mayer has assembled an outstanding team and built a business that is well positioned to both grow and innovate in a segment where we see significant opportunity. We also look forward to working with Ellington to leverage that firm’s extensive capital markets expertise and research capabilities in the reverse mortgage market.”
Written by Elizabeth Ecker