According to consulting firm Reverse Mortgage Insight, Security One is the fourth largest originator of the product for 2012 (third largest active lender as No. 1 originator MetLife is no longer originating loans, although it did so many loans earlier in the year that it remained at top).
Security One originated nearly 5,000 reverse mortgage loans with an aggregate unpaid principal balance of over $700 million in 2012.
RMS, headquartered in Spring, Texas, said it has a long-standing relationship with Security One, which uses its technology and sold it more than 60% of its 2012 production.
Walter’s chairman and CEO Mark O’Brien said, “This addition is a key step in achieving our previously stated goal to increase the retail mix of RMS's originations business. Security One has developed a robust retail and wholesale origination presence in the reverse mortgage market, with 20 branches and nearly 400 loan officers in the field, which we believe provides an attractive complement to the already strong correspondent origination program at RMS. This acquisition creates a combined platform with diverse, established originations channels without significant overlap.”
He added Walter believes the reverse mortgage product has very attractive long-term growth prospects. Prior to the acquisition being announced O’Brien told National Mortgage News that his company supports the moratorium on the fixed-rate, full draw Federal Housing Administration-insured Home Equity Conversion Mortgage option.
Security One is currently owned by its management, independent investors and funds managed by Jacobs Asset Management. It is headquartered in San Diego.
In November, the American Bankers Association picked Security One to provide its members with access to reverse mortgage products.