Walter Investment Management Corp. (WAC) wholly owned subsidiary Reverse Mortgage Solutions will enter into a forward flow agreement to purchase mortgage servicing rights originated by Urban Financial Group.
How much, however, is not disclosed in the accompanying form filed with the Securities and Exchange Commission.Walter is entering into a strategic relationship with UFG Holdings, a company controlled by an investor group led by Brian Libman, Walter’s Chief Strategy Officer.
UFG will acquire 100% of the membership interests of Urban from KCG Holdings, Inc.
Walter will invest approximately $15 million in UFG in the form of an unsecured loan and will receive warrants entitling Walter to purchase up to 19% of the common units of UFG.
Pending the transaction closing, Libman will resign from Walter.
Mark J. O'Brien, Chairman and CEO of Walter Investment, said in a statement: "Urban is a significant player in the reverse mortgage originations sector with a track record of operational excellence and a highly respected management team."