Miami-based Amstar plans to launch a reverse mortgage warehouse facility. The facility will serve small Federal Housing Administration (FHA) correspondents originating FHA-insured Home Equity Conversion Mortgages.
AmStar says it has reached agreement in principle with Value Financial Mortgage Services whereby AmStar will use Value's existing platform to provide infrastructure necessary to the launch. The agreement is designed to reduce AmStar's costs and allow AmStar to achieve profitability more quickly. Value will commit up to 50% of its future production to the AmStar facility. Once an investor funds the facility, there should be immediate use of the line.