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Liberty Temporarily Suspends Reverse Mortgage Lending in Virginia

Nationwide reverse mortgage lender Liberty Home Equity Solutions, which was acquired by Ocwen Financial in a deal that closed Wednesday, announced this week it has suspended accepting reverse mortgage loans in the state of Virginia. The company expects to resolve the issue shortly.

“Due to the transition of our company ownership, we have had to temporarily suspended accepting new loans originated in the state of Virginia,” a company spokeswoman told RMD. “We expect to resolve this issue shortly and will provide an update as soon as we have additional information available.”

In a notification sent to lending partners, Liberty stated the suspension was effective April 1 with the time frame of the suspension allowing for loans generated and entered into Genworth’s system on or before March 31 to be accepted.

Ocwen announced it had closed the transaction to acquire Genworth’s reverse mortgage division on Wednesday in a $22 million deal. The deal was originally announced in October 2012. 

Written by Elizabeth Ecker