logo
  Join        Login             Stock Quote

Walter Investment (WAC) Closes Purchase of Reverse Mortgage Solutions

 November 01, 2012 02:31 PM


(By Balaseshan) Walter Investment Management Corp. (NYSEAMEX: WAC) said it has completed its acquisition of Reverse Mortgage Solutions Inc. (RMS).

The acquisition of RMS positions Walter Investment as a full service leader in the $140 billion reverse mortgage servicing sector with sustainable growth opportunities in the servicing business, as well as strong earnings and cash flow driven by a highly successful originations business.

The acquisition represents an attractive extension to Walter Investment's high-margin, fee for service business model. RMS, based in Spring, Texas, provides a full suite of services to the reverse mortgage sector, including servicing, loan origination, securitization and technology.

[Related -Contrarian Traders Eye Call Options On Walter Investment Management Corp.]

RMS currently services about $12.4 billion in UPB of reverse mortgages and has issued about $1.8 billion of reverse mortgage backed Government National Mortgage Association (GNMA) securities (HMBS or Home Equity Conversion Mortgage Backed securities) to date, ranking it as the fourth largest reverse mortgage servicer and largest issuer of HMBS in the sector this year.

"We are extremely pleased to have completed the acquisition of RMS, further enhancing our capital-efficient, high-margin, fee for service business model. Importantly, we look forward to combining the deeply experienced RMS team with the existing Walter team to leverage the combined talents of both organizations," said Mark O'Brien, Chairman and CEO of Walter.

[Related -Contrarians Scoop Up Carnival Corp. Call Options ( CCL, XLF, IRM & WAC)]

The company said the acquisition of RMS creates a natural extension of its forward platform into the reverse mortgage space and will allow WAC to capitalize on the customer overlap between the two entities.

"We believe the reverse mortgage product has significant potential for future growth, and RMS is well positioned to capitalize on the coming opportunities. We anticipate RMS will continue to be highly successful and will drive increased value for our shareholders," said O'Brien.

WAC is trading down 7.10 percent at $44.90 on Thursday. The stock has been trading between $17.87 and $48.54 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageIntegrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?

Integrated Device Technology Inc. (NASDAQ:IDTI) will issue first quarter 2015 financial results on July 28, read on...

article imageHerbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?

Herbalife Ltd. (NYSE:HLF) will release its second quarter 2014 financial results after the close of trading read on...

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.