Late last Friday, WSFS Financial Corporation (WSFS) announced that they had purchased a majority stake in 1st Reverse Financial Services, LLC from Family Federal Savings of Illinois.
According to the press release, Mark A. Turner, WSFS President and CEO said, “WSFS has almost 15 years of success with reverse mortgages. More recently we have had success in originating reverse mortgage loans in our local footprint through our retail branch network. That success, under the leadership of Vice President Trish Kauker, will continue. This acquisition will allow WSFS to expand on that knowledge and experience.”
The $3.2 billion financial services company includes its principal subsidiary Wilmington Savings Fund Society, FSB which currently operates 33 retail banking and loan production offices in Delaware, as well as Southeastern Pennsylvania and Northern Virginia, providing comprehensive banking services including wealth management and personal trust services.
While the purchase is a great complement to WSFS’s retail banking platform, the company plans to provide the backing 1st Reverse needs to grow into a top nationwide reverse mortgage wholesale lender. “1st Reverse has been making loans for more than a year now and, to reach its significant potential, will need the investment and resources that WSFS can provide. As with many new initiatives, we expect modest start-up losses in the first year, but believe the revenue and profit opportunities of providing this product are great”, said Turner.
“Our partnership with WSFS expedites 1st Reverse’s rise to being one of the preeminent reverse mortgage lenders in the nation. Our shared commitment to providing excellent products, service and resources provides consumers and our business partners with access to one of the strongest reverse mortgage lending providers in the country,” said Ralph Rosynek, President of 1st Reverse. “Additionally, we will be able to expand on a more national basis with more resources behind us to offer our concierge level of service to lenders and correspondents who want to provide this senior-friendly product to their customers.”
The announcement comes less than thirty days after MetLife entered an agreement to purchase EverBank Reverse. Are we starting to see a trend here? More on that coming later this week.