RMF REIT Withdraws $100 Million IPO Plans

Reverse Mortgage Investment Trust (RMIT), which owns Reverse Mortgage Funding, on Wednesday officially withdrew its application for an initial public offering.

Renaissance Capital first reported the news.

The Bloomfield, N.J.-based real estate investment trust (REIT) purchased RMF back in July 2014, and also raised $230 million in a private equity offering that same year. The REIT was formed shortly after RMF’s founding in 2012.

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In December 2014, the REIT formally filed paperwork with the Securities and Exchange Commission to go public, with a target of raising $100 million through the initial offering.

“We believe we are one of the most well capitalized companies focused on the reverse mortgage industry,” the REIT wrote in the filing.

RMIT announced its IPO with an ambitious forward-looking plan that involved providing back-office services to local banks and credit unions, such as processing and underwriting.

“Our principal objective is to provide attractive risk-adjusted returns to our stockholders over the long term through distributions and capital appreciation,” RMIT said.

The REIT planned to trade on the New York Stock Exchange under the ticker symbol RMIT, according to Renaissance Capital, and had $19 million in revenue for the year ended June 2015. A variety of big investment names were signed on to underwrite the deal, including Credit Suisse, Barclays, and UBS Investment Bank. 

But there was no further movement on the IPO in the intervening three years, and the application was quietly withdrawn this week. A spokesperson for RMF did not respond to a request for comment as of press time.

RMF remains a top player in the Home Equity Conversion Mortgage space: During the 12 months ended September, the lender originated 6,692 loans, good for third place on Reverse Market Insight’s list of the top retail and wholesale lenders. RMF claimed a 12.1% market share during that span, trailing only American Advisors Group and Finance of America Reverse.

Written by Alex Spanko

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