Top 10 Reverse Mortgage Lenders Based in Bloomfield, New Jersey Reverse Mortgage Funding, LLC (RMF) is reportedly suspending all origination activity after losing its warehouse funding line, multiple sources told RMD.
This information was confirmed by a company spokesperson.
“On Monday, November 21, Reverse Mortgage Funding and its affiliates made the difficult but necessary decision to suspend mortgage origination activities,” a spokesperson wrote in an email. “The RMF, like many of its peers, has been plagued by unprecedented rate hikes and overall macroeconomic volatility.”
While not directly addressing the issue of the warehouse financing line, the spokesperson said, “Reverse mortgage financing and the cost of securitization make RMF want to unlock the value of their homes at this time for seniors. It has become impossible to continue origination due to
RMF has been a leading reverse mortgage lender for many years, offering both. Federal Housing Administration We offer Home Equity Conversion Mortgage (HECM) loans backed by (FHA) and a range of proprietary reverse mortgages under the ‘Equity Elite’ brand.
The company’s move is a blow to the industry’s distribution channels and represents the potential layoffs of around 400 employees at all levels of the business, according to headcount estimates published on social media. I’m here.
According to Mortgage Tech Platform Modex, the company had 139 active loan officers as of November 21. Originations reached $321 million in the last 12 months, fluctuating from $42.5 million in December 2021 to $12.8 million in October 2022.
A spokeswoman said the company “is working diligently with voters to support their businesses and is doing everything possible to help them navigate these challenging market conditions.”
Before reverse mortgage transaction volumes fell significantly across the industry, SeptemberRMF was positioned to absorb more business in a market it identified as “increasing demand” for reverse mortgage products. Arizona.
According to HECM approval data Edited According to Reverse Market Insights (RMI), RMF is the fifth largest HECM lender in the country, with 4,804 approvals in the 12 months to 31 October.
None of the top 10 lenders in October recovered all of their September losses, but RMF was within 9% of the volume levels before August’s losses.
and interview RMF President David Peskin spoke at RMD earlier this year about new challenges related to rising interest rates. The challenge was felt most acutely on the forward mortgage side, but in early 2022 Reverse was beginning to affect his mortgage lenders.
In March, Peskin said the uncertainty associated with rising interest rates and widening spreads had impacted profit margins. He said it was important to make adjustments and that the RMF was aiming to make adjustments where operations were needed at the time.
At the beginning of 2022, the RMF will got Portfolio of mortgage servicing rights (MSRs) and other assets from leading lender American Advisors Group (AAG) comprising more than 75,000 loans with a total outstanding principal of $12.1 billion I have a balance (UPB).
In September and October 2021, the company will hired Targeting corporate new hires to meet emerging demand for reverse mortgages.continue appointed Employees leading the Financial Planners channel to facilitate connections with RMF loan officers.
Followed by departure After separating MetLife from its reverse mortgage business in 2012, a group of former company executives began the RMF launch process. The lender was the brainchild of former MetLife leaders Craig Cohn, Joe DeMarkey, Bob Shibori, Mike Mooney and Rick Peters.the company first launch David Peskin became president in August 2013.