WALTER INVESTMENT MANAGEMENT CORP. ANNOUNCES
COMPLETION OFACQUISITION OF SECURITY ONE LENDING
(Tampa, Fla.) – Walter Investment Management Corp. (NYSE: WAC) (“Walter Investment” or the “Company”) an asset manager, mortgage portfolio owner and mortgage servicer, today announced the completion of the acquisition of 100% of the stock of Security One Lending (“S1L”). A definitive acquisition agreement was signed on December, 31, 2012, with the closing subject to regulatory and change of control approvals, which have been secured.
S1L, based in San Diego, California, is a retail and wholesale reverse mortgage originator which has grown to a top tier company since its inception in November of 2006. The combination of Walter Investment’s subsidiary, Reverse Mortgage Solutions, Inc., (“RMS”) the largest issuer of HMBS securities in the industry, and S1L creates a combined platform with diverse, established originations channels without significant overlap.
“We believe S1L’s management team is among the best in the reverse mortgage sector and has a strong vision and strategic growth plan. The entire team is highly respected in the industry and we anticipate that they will contribute to the firm’s goal of being a leading service provider to our origination force and our broker partners,” said Mike Kent, Executive Vice President of RMS. “Additionally, there is a strong cultural alignment between the two firms which we believe will contribute to a smooth integration of the businesses.”
“We are pleased to be able to leverage the access to capital that Walter Investment can provide and believe our ability to combine expertise and resources with RMS and its management team places S1L and our employees in the very best position to compete within the reverse mortgage sector,” said Torrey Larsen, President of S1L. “RMS’s investment in the company and its industry resources will enable S1L to maintain its position as a dominant originator in the reverse mortgage space.”
“The combination of RMS and S1L secure our position as a leader in the reverse mortgage industry. The combined expertise of the two firms is highly synergistic, and we look for continued strong returns from the reverse mortgage business,” stated H. Marc Helm, Chairman and CEO of RMS. “We believe in this industry and think we are uniquely positioned to capitalize on the growth opportunities in this sector.”
About Walter Investment Management Corp.
Walter Investment Management Corp. is an asset manager, mortgage servicer and originator focused on finding solutions for consumers and credit owners. Based in Tampa, Fla., the Company has over 4,800 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company’s website at www.walterinvestment.com.
300 Bayport Drive, Suite 1100 Tampa, Florida 33607
813.421.7600 www.walterinvestment.com
1 Comment
Now RMS has a strong origination team to match its best in class HECM servicing platform. Now S1L will not have a long ramp up time or huge capital tied up in HMBS issuance. This allows both parties to focus on their best attributes.
This was a strong vertical acquisition and a good horizontal acquisition. We are looking forward to see where both companies go from here.
It was great this transaction was completed before we see a surge in consumer demand for HECMs. By the time that comes, the two operations should be effectively operating as one unit.