Sacramento Business Journal is reporting that New Horizons Reverse Mortgage has filed for Chapter 7 bankruptcy liquidation.
According to the article, the California based reverse mortgage lender leased a 8,600 square of office space at the beginning of 2009 and had trouble paying the rent after business disappeared.
The company in April signed a lease to move to smaller quarters in November. But by May, New Horizons had difficulty paying rent on the larger space.
Michael Carroll, president and founder of New Horizons told the Journal that “Everything shifted, and it shifted really quick.”
“People thought with the baby boomers coming in, the market would double. But with the economy the way it is, it is just very difficult,” he said. “In the beginning, people were jumping in the boat. Now, you can fish all day and you don’t catch anything.”
According to HUD data, New Horizons volume dropped 38% in 2009. The company endorsed 184 HEMCs in 2009 and 321 HECMs in 2008. For more data on the company see its listing on ReverseBase.
