One Reverse Mortgage LLC gained Ginnie Mae approval to participate in the HECM Mortgage-Backed Securities program.
The approval allows One Reverse, a Quicken Loans Company to bundle and sell reverse mortgage securities.
"Receiving approval from Ginnie Mae to issue securities was an important next step in our growth," said Gregg Smith, president and chief operating officer of One Reverse Mortgage LLC. "We will now be able to leverage the relationships we have forged with the investment community, as well as those we have made through our relationship with Quicken Loans."
The company has been the fourth ranked retail lender in the reverse mortgage the past 12 months according to data from Reverse Market Insight with 4,068 HECM endorsements. With the exits of Wells Fargo and Bank of America and expected growth from the new Ginnie Mae approval, One Reverse is poised to compete for the number two spot behind MetLife Bank.
"The HMBS program allows us to secure the best possible pricing for our clients, which was the primary reason we decided to undertake the lengthy certification process," Smith added. "It is the natural next step in our mission to provide our clients with the best service and pricing in the reverse mortgage industry."
In addition to improved pricing, the approval also provides the opportunity for the company to begin retaining servicing of the loans they originate. Currently 100% of the companies originations come through the retail channel. Although the company has not announced plans to enter the wholesale or correspondent channels, being one of a small number of companies with HMBS issuance capability, the concept of expansion into those channels would at least have to be under consideration at some point.