Not every bank is heading for the hills when it comes to reverse mortgage lending.
A few days before Thursday’s announcement that Wells Fargo & Co. was exiting the sector, MetLife senior vice president Brian Lewand confirmed to National Mortgage News that his institution is targeting growth in reverse mortgage lending.
Not only is the bank/mortgage lender increasing loan production in the space, but it recently began extending warehouse lines of credit to mortgage banking firms that originate reverses. “We view it as a natural leveraging of our capabilities,” said Lewand.
According to figures compiled by NMN and the Quarterly Data Report, Wells dominated the reverse sector in the first quarter, funding $1.28 billion in product – far ahead of its closet competitor, Bank of America. MetLife ranked third nationwide with $628 million, growing its volume by a handsome 63%.
B of A is in the process of winding down its reverse commitments. (For full details on the reverse market see the Monday paper edition of NMN.)
