Former loan originators at Wells Fargo & Co.’s reverse mortgage business have been recruited by a new reverse lender. It’s the third month in a row that a new reverse mortgage lender was announced.
Wells Fargo Home Mortgage disclosed in March that it would close its wholesale reverse mortgage channel. Three months later, Wells Fargo said it planned to shut down its entire reverse mortgage business.
The decision impacted around a thousand employees.
One company that saw an opportunity in Wells’ exit was Maverick Funding Corp., which recruited 22 reverse mortgage originators from Wells for its own new reverse mortgage subsidiary.
The new subsidiary, Parsippany, N.J.-based Reverse Mortgage Network, opened for business on Sept. 1, according to a statement Tuesday from Maverick.
The new operation is reportedly licensed to do business in 22 states.
Maverick says that it only started operations in April 2007 with 20 employees. Headcount has since grown to 114 people.
Reverse Mortgage Network’s entrance follows the September disclosure by New American Funding that it opened a reverse mortgage division and an August announcement that J.G. Wentworth parent JGWPT officially launched a reverse mortgage division.