Banks Offering Reverse MortgagesInstitutions offering reverse mortgages
Update 2 Bank of America acquires Seattle Reverse Mortgages Facility
BAC.N said Thursday that it would agree to buy the reverse mortgages from Seattle Mortgages Co. for an unrevealed amount to provide more mortgages to senior Americans. Reversed mortgages are a type of home equity home loans that is loved by those aged 62 and over. In return for the capital in their houses, they let others lend and turn it into money.
Charlotte, North Carolina-based Bank of America said the buy makes it the third biggest US mortgage repo supplier. NDE.N. from Pasadena, California, is by far the biggest. "Demographic data is clear to everyone as the infant boomers age, and this will become an increasingly important product," said David Rupp, a Bank of America senior manager who will monitor the new deal, in an interviewer.
The Seattle products are marketed under the Reverse Mortgages of America name. There are 40,000 reverse mortgages with over $4 billion in balance. It is an indirectly held subsidiary of Seattle Financial Group Inc., Seattle. The Reverse Mortgages of America is located in Bellevue, Washington. Reversed mortgages are regarded as more secure than many "subprime mortgages" that creditors have beaten.
The Bank of America is one of the biggest mortgages banks, but does not make sub-prime home credits. Rup said a number of the reverse mortgages at the reverse mortgages of America are home equity converting mortgages. Approximately 400 Seattle staff, among them more than 200 distribution staff in 25 states and Washington, D.C., will join Bank of America.
"Rupp said, "The concept is to mix Reverse Mortgages of America with our store networks, our financial statements and our brands. It is the second biggest US banking institution. Subject to supervisory approvals, the Company anticipates that the deal will be completed this quarter. However, the Company does not expect the closing of the deal before the end of the year. She said UBS Investment advised Seattle Estate Management on the deal.