According to an article recently published by National Mortgage News, David Peskin, CEO of Vertical Lend said that the company is slated to be renamed World Alliance Financial. The announcement comes after KBC Bank agreed to buy Vertical Lend, a reverse mortgage retail/wholesale lender and lead aggregator based out of Melville, NY. “We believe that reverse mortgages will grow tremendously in the next couple of years”, KBCFP co-CEO Thomas Korossy told National Mortgage News. Peskin and Korossy both also said that the partnership should lead to the creation of more products in the reverse mortgage space. This is great news for Lender Lead Solutions, a subsidiary of Vertical Lend who has become a strong presence in the wholesale reverse mortgage business without offering any type of jumbo reverse mortgage product to its brokers. Peskin also noted that the deal will reduce his company’s reliance on warehouse lines and possibly allow it to expand further.
Another interesting note from the article:
Mr. Peskin, who said he had been approached by several other institutions, said he liked KBCFP’s offer best because it meshed with his entrepreneurial approach to business and the KBC Bank subsidiary seemed willing to provide the resources needed to make strategic moves quickly and efficiently.
This is a good fit for a company like Vertical Lend, who has been willing to test brand names and innovative strategies in the market and make shifts toward new areas if they don’t stand the test of time. Earlier in the company’s history, Vertical Lend experimented with accountant-originated loans but the company found the reverse mortgage market has become the strongest opportunity.
Vertical Lend is the third company this year that has been bought by a larger institution looking to establish itself in the reverse mortgage market. Earlier this year Bank of America purchased Seattle Mortgage, which instantly made BofA one of the largest reverse mortgage originators in the country. At the end of July we also saw Genworth Financial purchase Liberty Reverse Mortgage, which Genworth is hoping will compliment its long term care business. It seems like this is becoming a trend that we will be seeing more and more.
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, Lender Lead Solutions, Vertical Lend, Bank of America, Seattle Mortgage, Genworth