Sun West Unloads $1.8 Billion Reverse Mortgage Servicing Rights Portfolio to RMF

Sun West Mortgage Company has unloaded its long-held portfolio of reverse mortgage servicing rights through a sale to Reverse Mortgage Funding (RMF), according to recent data tracked by Ginnie Mae.

A form S-11 filed by Reverse Mortgage Investment Trust (RMIT)—the REIT behind RMF—with the Securities and Exchange Commission revealed that on March 1, states the company has completed the acquisition of approximately $1.8 billion in reverse mortgage servicing rights—the total portfolio amount of Sun West’s previous holdings, as noted in Ginnie Mae data as of February 2015.

In the most recent data report as of March 2015, Ginnie Mae shows RMF to have purchased the total of Sun West’s portfolio. In an email to RMD, Ginnie Mae confirmed that an exchange occurred between the two companies.

Sun West, whose HMBS issuance drops off after January 2015 when it issued $16.1 million worth of securities, reported no issuance for the months of February and March of this year.

Since Sun West began issuing HMBS in September 2008, the company’s portfolio has totaled approximately $1.8 billion of reverse mortgage servicing rights through January 2015. The company did not respond to a request for comment as of press time.

RMF has made considerable strides since its founding in 2013.

Last December, Reverse Mortgage Investment Trust, the real estate trust that acquired RMF in July 2014, filed with the SEC to raise up to $100 million in an initial public offering.

Since RMF began issuing HMBS in March 2014, the company has ramped up, effectively ranking among the top-five HMBS issuers during the first quarter of 2015. In the first quarter, the company amassed an aggregate HMBS amount of approximately $260.6 million.

On January 27, the company entered into a definitive agreement to purchase approximately $3.4 billion of mortgage servicing rights from a third party—on HECM loans currently included in Agency HMBS and HECM loans owned by Fannie Mae—as well as approximately $21.7 million of related servicing advances.

For the $1.8 billion of such mortgage servicing rights RMF acquired in March, the company completed the purchase of the servicing advances on March 11.

While RMF intends to complete the acquisition of the remaining mortgage servicing rights during the second quarter of 2015, there is no assurance the company will acquire the remaining mortgage servicing rights during this period at all, RMIT stated in the SEC filing.

RMF declined a request for comment.

Written by Jason Oliva

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