TAMPA, Fla., Nov. 1, 2012 /PRNewswire/ -- Walter Investment Management Corp. (NYSE MKT: WAC) ("Walter Investment" or the "Company") today announced it has completed its previously announced acquisition of Reverse Mortgage Solutions, Inc. ("RMS").
RMS, based in Spring, Texas, provides a full suite of services to the reverse mortgage sector, including servicing, loan origination, securitization and technology. RMS currently services approximately $12.4 billion in UPB of reverse mortgages and has issued approximately $1.8 billion of reverse mortgage backed GNMA securities ("HMBS") to date, ranking it as the fourth largest reverse mortgage servicer and largest issuer of HMBS in the sector this year. The acquisition of RMS positions Walter Investment as a full service leader in the $140 billion reverse mortgage servicing sector with sustainable growth opportunities in the servicing business, as well as strong earnings and cash flow driven by a highly successful originations business. The acquisition represents an attractive extension to Walter Investment's high-margin, fee for service business model.
Mark J. O'Brien, Chairman and CEO of Walter Investment said, "We are extremely pleased to have completed the acquisition of RMS, further enhancing our capital-efficient, high-margin, fee for service business model. RMS is an industry leader in all facets of the reverse mortgage space and continues to deliver strong financial and operational performance. Importantly, we look forward to combining the deeply experienced RMS team with the existing Walter Investment team to leverage the combined talents of both organizations."
"The acquisition of RMS creates a natural extension of our forward platform into the reverse mortgage space and will allow us to capitalize on the customer overlap between the two entities," continued Mr. O'Brien. "We believe the reverse mortgage product has significant potential for future growth, and RMS is well positioned to capitalize on the coming opportunities. We anticipate RMS will continue to be highly successful and will drive increased value for our shareholders."
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