For the second time in as many months, a new reverse mortgage originator has emerged. The latest entrant plans to capitalize on reduced competition.
Late last month, JGWPT said that it has officially launched a reverse mortgage division.
The move came as reverse mortgage lenders like Bank of America Home Loans, OneWest Bank Group LLC and Wells Fargo Home Mortgage have announced plans to exit the business. The latest casualty came just a few weeks ago at SunTrust Mortgage Inc.
Now, another firm is moving into the space.
The company, New American Funding, disclosed Friday a new reverse mortgage division.
Business is initially being generated through a radio advertising campaign.
Running the new department is Keith Murphy, who reportedly co-founded Omni Reverse Mortgage in 2002.
“The company recognizes the many market changes in the reverse mortgage industry, including the exit of big players Wells Fargo and Bank of America, and believes these changes have created new opportunities, for both the refinance and purchase market,” the statement said.
In January 2010, New American announced the launch of a wholesale division. At that point it employed a staff of 175.
