MortgageReverse

After Raising $11 Million, Reverse Mortgage Lender Shuts Down

NewImage.jpgGolden Gateway, an Oakland, CA based reverse mortgage lender is shutting down after opening its doors in 2007.  Founded by Eric Bachman, the company reportedly went through two rounds of funding with Menlo Ventures, raising a total of $11 million.

The company made quite and entrance into the industry when it launched its online calculator, which lead to major media outlets covering the tool, praising it for its ease of use and interactive features.  After the launch, it continued to develop its online presence by releasing several budget tools and calculator data at the end of each quarter.

It also developed a Prepaid Mastercard partnership with Bancorp Bank that allowed borrowers to immediately and and securely receive their monthly proceeds on a reloadable prepaid card instead of a check.  The account was opened up at closing and cardholders were able to login online to check their funds balance and transaction history.  No other non-bank lender offered anything comparable.

Within the last year it signed partnerships with several large credit union clients and technology ventures, but it wasn’t enough. The company sold its life settlement business to Policy Options in August for an undisclosed sum, but sounded like it planned to stay in the reverse mortgage business.

We reached out to Bachman several times for comment but have been unable to reach him or anyone at the company.  Several different wholesale lenders confirmed with us that the company is no longer in business and the 800 number listed on the website is no longer in service.

The company was the 44th largest reverse mortgage lender in the country according to data from Reverse Market Insight.

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