A company that is among the 10 largest producers of government-insured reverse mortgages has disclosed plans to exit originations.
A written statement Wednesday from Generation Mortgage Co. indicated that it is winding down its origination operations.
The Atlanta-based company said it will no longer accept new reverse mortgage applications — though it will fund loans that are already in process.
During the 12 months ended Sept. 30, Generation Mortgage originated 1,591 home-equity conversion mortgages — making it the seventh-biggest HECM originator, according to data from Reverse Market Insight Inc.
Colin Cushman, chief executive officer of Generation Mortgage, explained in the announcement that the decision to exit originations was forced by the wave of regulatory changes that have swept the industry.
“As a result of those changes, the industry has seen a reduction in the number of units, as well as a reduction in loan balances, significantly reducing origination revenues while increasing expenses,” Cushman stated.
The CEO noted that Generation Mortgage will continue servicing existing loans.
After this story was published, a spokeswoman confirmed that 50 employees are being laid off as a result of the decision to exit reverse mortgage originations.
