The reverse mortgage will be an important growth segment going forward for Walter Investment Management Corp. (NYSE: WAC) as the sector prepares for “explosive” growth in the coming years, Walter execs told investors and analysts following the company’s announcement it has agreed to purchase reverse mortgage lender and servicer Reverse Mortgage Solutions (RMS).
The acquisition was again a focal point of presentations to the company’s shareholders this week during its annual Walter Investment Management Corp. Analyst/Investor Day.
Presenting before investor participants in a company conference call, RMS President and CEO Marc Helm fielded questions about the reverse mortgage business and the different business channels RMS operates. Walter announced an agreement last week to acquire RMS in a deal valued at $120 million.
Among growth opportunities RMS is seeing is growth in the reverse mortgage subservicing market—a market to which the company currently lays claim to about 10%.
“Over time, we’re going to grow dramatically through that and take more of the market share not withstanding if we had an acquisition, it would grow a lot faster but just in our origination, we’re going to see that number grow pretty rapidly over the next few years,” Helm said.
Walter is planning for the company’s growth as one of its business channels.
“We are working and couldn’t be more pleased with the RMS acquisition and the addition of those executives in that platform to the Walter team. We are looking at extending the platform,” said Denmar John Dixon, vice chairman, executive vice president and director.
Written by Elizabeth Ecker