Reverse Mortgage Solutions under its parent company Walter Investment Management Corp. (NYSE: WAC) announced this week it has secured a $100 million credit line with the Royal Bank of Scotland.
The warehouse line is provided by RBS as a master repurchase agreement on an uncommitted basis, to mature February 26, 2014, according to Walter’s filing with the Securities and Exchange Commission.
“The Warehouse Facility will be used to support RMS’s funding obligations in connection with its reverse mortgage loan origination business,” the company stated.
Walter has recently made its entry into the reverse mortgage space with its $122 million acquisition of RMS in 2012. Walter also has a deal pending to acquire Security One Lending for $31 million, expected to close in 2013.
The company has also been purchasing mortgage servicing rights, as well as having recently acquired the servicing platform of MetLife Bank.
Walter executives said earlier this year that anticipated changes to the Federal Housing Administration’s reverse mortgage program were unlikely to impact loan volume.
Written by Elizabeth Ecker