Walter Investment Completes Reverse Mortgage Deal with Wells Fargo

Walter Investment Completes Reverse Mortgage Deal with Wells Fargo

04/10/2013 BY: TORY BARRINGER

Walter Investment Management Corp. announced Tuesday that its wholly owned subsidiary, Reverse Mortgage Solutions, Inc. (RMS), has acquired a reverse mortgage servicing portfolio containing more than 76,000 loans from Wells Fargo Home Mortgage.

The portfolio has an unpaid principal balance of about $12.2 billion and is expected to transfer to RMS during the third quarter of 2013, Walter Investment said in a release.

“We expect that the acquisition of this MSR [mortgage servicing rights] will be an attractive addition to our reverse mortgage servicing portfolio and solidify our position as a leader in the reverse mortgage sector,” said Mark J. O’Brien, chairman and CEO of Walter Investment. “This transaction, which doubles the size of our serviced book, will allow us to leverage our considerable capabilities in the reverse mortgage sector as we continue to see a significant growth opportunity in the sectors. We are especially pleased to have completed this transaction with Wells Fargo.”

The Tampa-based company isn’t the only firm to have gained an appetite in reverse mortgages.

Ocwen Financial Corporation announced earlier in April the completion of a deal to acquire Liberty Home Equity Solutions, the country’s biggest reverse mortgage lender. Commenting on the acquisition, Ocwen CEO Ron Faris said he sees “enormous long-term growth potential” in the market.

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