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First Reverse is Shutting Down

First Reverse, the Reverse Mortgage company that was acquired by Wilmington Savings Fund Society (WSFS) a Delaware Bank in 2008 is being "wound down" because they were still losing money (although much less than last year) and the bank had a bad quarter.

This stinks because (as I had posted earlier) First Reverse was one of only two lenders that were offering the Jumbo Reverse Mortgage loans for properties that were worth over $2 million dollars.

I wonder if some other entity will pick them up.

Posted by Michael Pinter on 07/28/2009 08:19 AM

Comments (6)

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6 Comments on First Reverse is Shutting Down

JUL

I heard that yesterday! The RM industry is being hit pretty signifcantly. World Alliance, First Reverse in just the last several weeks.

It's amazing. Our company, First Reverse Mortgage USA, is growing by leaps and bounds. I just don't get it.

Dennis,

Thanks for the comment. World Alliance did not scare or suprise me, they are a Belgian Bank and I had thought that their Reverse Mortgage people were not too ethical (e.g. selling the crappy leads and keeping the good ones,) but First Reverse was a suprise. They were growing and losing less money. Feel free to subscribe to my blog.

Michael Pinter

Larry,

Thanks for the comment. I don't get it either. WSFS says they are still committed to Reverse Mortgages and First Reverse is getting closer to profitability. Maybe someone will swoop in and save the company. I hope so. Feel free to subscribe to my blog.

Michael Pinter

Wow, the jumbo loan market continues to take a hit. There just is not enough liquidity going into this market to help homeowners.

Mark,

You said it, Just when I thought it was coming back, another setback like this. Now only Bank of America offers Jumbo Reverse Mortgages and they only offer it in about ten states.

Michael Pinter

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