Reverse Funder Senior Lending Network Halts Production

World Alliance Financial Corp. has halted the origination of all new reverse mortgages at its Long Island-based subsidiary, Senior Lending Network, after failing to find a buyer for the division. A source familiar with the matter said a Delaware bank had agreed to buy Senior Lending Network — whose pitchman is actor Robert Wagner — but the sale fell apart last week. SLN started out several years ago selling reverse mortgage leads to loan brokers but then moved into loan production. World Alliance is owned by the Belgium-based KBC Group. SLN executive vice president Jean Noble confirmed the production shutdown but stressed that it will continue to service its portfolio of reverse loans which totals about 19,000 units. Roughly 140 workers were laid off. She said the company is continuing to look at "opportunities" and is talking to investors about raising capital. She confirmed that a sale of SLN had fallen apart but declined to name the institution. SLN originated reverses under the Federal Housing Administration Home Equity Conversion Mortgage program. SLN ceased taking new applications on July 7.