Walter Investment Management Group entered into a strategic relationship with UFG Holdings LLC to expand its reverse mortgage servicing business.
Under the agreement, UFG Holdings, which is controlled by WIMG’s chief strategy officer, will acquire reverse mortgage lender Urban Financial Group, based in Tulsa, Okla., from another investor group.
Once the purchase is complete, Walter Investment will invest $15 million in UFG Holdings and enter into a flow agreement to purchase MSRs from the Tulsa-based reverse mortgage lender. WIMG’s
Walter Investment’s chief strategy officer Brian Libman will resign his position with Water Investment once the transaction is closed.
“Urban is a significant player in the reverse mortgage originations sector with a track record of operational excellence and a highly respected management team,” said Mark O’Brien, chairman and chief executive of Walter Investment.
“We believe the development of this strategic relationship with Brian and Urban will result in a long-standing and mutually beneficial relationship for both entities,” the CEO said.
In April, Reverse Mortgage Solutions acquired a $12.2 billion reverse mortgage servicing portfolio from Wells Fargo Home Mortgage.
