LTC Global has acquired a controlling equity interest in EquiPoint Financial Network, a San Diego, CA, based reverse mortgage lender.
Last year, LTC Global agreed to acquire a majority interest in another reverse mortgage lender, Next Generation Financial Services (NGFS), which is currently operating as a division of 1st Mariner Bank.
“The EquiPoint acquisition is part of our strategy to expand our financial product offerings to the senior market,” said Thomas A. Skiff, Chief Executive Officer of LTC Global. “We expect substantial synergies between EquiPoint and NGFS. We admire what Bruce Barnes and the EquiPoint team have accomplished in the industry so far, and we’re looking forward to working with them.”
EquiPoint’s principal Bruce D. Barnes will continue to serve as President of the company.
“LTC Global’s resources and experience in the senior market will complement EquiPoint’s business. In particular, LTC Global’s financial strength will enable EquiPoint to underwrite, close and warehouse a substantial inventory of loans,” said Barnes. “We also anticipate significant marketing synergies,” he said.
The deal makes a lot of sense for a couple reasons. As long as First Mariner is in bad shape financially, there isn’t much NGFS can do as part of the bank. However, if LTC Global wanted to take the company out of First Mariner, they wouldn’t have any licensing to originate loans since they’ve been operating under the bank’s charter.
By acquiring a controlling interest in EquiPoint −which is licensed in 21 states − they can quickly hit the ground running if they choose to move NGFS out of the bank. RMD asked whether the company planned on doing that and they wouldn’t comment.
EquiPoint is the 18th largest reverse mortgage lender in the country according to data from the Department of Housing and Urban Development. The company endorsed 478 HECM loans during FY 2010.
Terms of the deal were not disclosed.