Arista Financial Targets Reverse Mortgage Acquisitions for Market Entry

New Jersey-based financial services holding company Arista Financial Corp., which offers financing options to small truck lenders through its wholly owned subsidiary Arista Capital, announced Wednesday that it intends to enter the mortgage business, but also added that it is pursuing avenues to enter the reverse mortgage sector to further diversify its holding company’s portfolio.

Arista is working to expand its lending capabilities to include mortgage products and services, describing that it “has already begun the process of conducting extensive due diligence on several potential acquisition opportunities” in the mortgage lending industry, according to a press release. Its acquisition preferences are also aimed specifically at organizations that have the experience, or at least the capability, to do reverse mortgages.

“This is a unique opportunity consistent with our strategic plan to expand our holding company business into various complimentary lending businesses and the mortgage industry operates with a very similar business model and culture,” said Paul Patrizio, CEO of Arista Financial Corp. in the press release. “I expect that we will make significant investments to pursue future growth.”

While only a small fraction of total outstanding mortgage debt in the United States is tied to reverse mortgage products, Arista sees this as a business sector worth expanding into because of the way that demographics are playing out in the country as time goes on. The figure of reverse mortgage debt appears set to rise in the future due to “the simple age demographics of the U.S.,” the press release said.

“We believe by acquiring an operating mortgage company with significant experience and a track record in the industry along with the Arista team’s extensive experience with the banking and mortgage markets we will not only be able to increase the mortgage company’s current capabilities but also greatly expand its current product offerings which we would like to include reverse mortgage products,” Patrizio added.

The addition of reverse mortgage products to the company’s portfolio of offerings, “will not only differentiate us from the general mortgage market but will also add some diversification to our holding company,” Patrizio said.

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