Walter Investment Management Corp. (NYSEAMEX:WAC) announced on Thursday it has completed the acquisition of Reverse Mortgage Solutions (RMS).
In September, Walter announced it would pay $122 million for RMS, which is a servicer, originator and technology provider for the reverse mortgage industry.
“We are extremely pleased to have completed the acquisition of RMS, further enhancing our capital-efficient, high-margin, fee for service business model,” said Mark J. O’Brien, chairman and CEO of Walter. “RMS is an industry leader in all facets of the reverse mortgage space and continues to deliver strong financial and operational performance.”
RMS currently services approximately $12.4 billion in UPB of reverse mortgages and has issued approximately $1.8 billion of reverse mortgage backed GNMA securities to date, ranking it as the fourth largest reverse mortgage servicer and largest issuer of HMBS in the sector this year.
Walter said the acquisition positions itself as a leader in the $140 billion reverse mortgage servicing sector and is an attractive extension to its existing business model.
“The acquisition of RMS creates a natural extension of our forward platform into the reverse mortgage space and will allow us to capitalize on the customer overlap between the two entities,” O’Brien said. “We believe the reverse mortgage product has significant potential for future growth, and RMS is well positioned to capitalize on the coming opportunities.”
Walter also announced last week that it won the bid to acquire Residential Capital out of bankruptcy, where it teamed up with Ocwen Financial to purchase the company for $3 billion.
Earlier this week, Ocwen also announced it plans to acquire Genworth Financial Home Equity Access for $22 million.