Reverse Mortgage Investment Trust Buys Reverse Mortgage Funding
- Jul 15, 2014
Reverse Mortgage Investment Trust Inc. is now the proud new owner of Reverse Mortgage Funding L.L.C. RMIT, which focuses predominantly on investing in FHA-insured reverse mortgages and government-guaranteed reverse mortgage-backed securities, acquired RMF, an originator and servicer of reverse mortgages, for an undisclosed amount.
“The announcement that RMF was acquired by RMIT comes after all relevant state and federal regulatory approvals. The acquisition of RMF by RMIT was, in fact, agreed to in February in connection with the 144A equity offering,” Craig Corn, RMF CEO and RMIT chairman & CEO, told Commercial Property Executive.
That private offering resulted in the sale of 5,333,334 shares of RMIT common stock at $15 per share, for a total capital raise of $230 million.
With the RMF acquisition, RMIT has achieved a strategic goal of creating a two-pronged platform comprised of reverse mortgage banking and portfolio management.
“The reverse mortgage market is healthy and it will grow alongside the growth of America’s senior population,” Corn added. “We know that seniors want to stay in their homes, and reverse mortgages are powerful retirement planning tools that can help them do that.”
And there’s more on tap for RMIT in the near future. In May, the REIT confidentially submitted a registration statement with the SEC in connection with a proposed initial public offering of its common stock, which is expected to take place later this year.