Lenders One Mortgage Cooperative, a national alliance of independent mortgage bankers, has announced MetLife Bank NA, a subsidiary of MetLife Inc., as its newest preferred investor.
The relationship will position MetLife Home Loans' Reverse Mortgage Division to purchase cooperative members' closed reverse mortgages and fixed-rate home equity conversion mortgage products.
‘Reverse mortgage lending is still a relatively untapped business channel for many lenders," says Scott Stern, Lenders One CEO. "We believe that MetLife's experience in this sector of the industry will support our members' efforts to grow their business in this market and allow an additional way for them to provide needed products in the communities they serve."
Unlike other reverse mortgage lenders, MetLife has a correspondent division dedicated to purchasing closed reverse loans. Though some of Lenders One's members have experience with reverse mortgages, they were mostly limited to acting as a broker. The alliance with MetLife is expected to help Lenders One members migrate to a correspondent role.
"With maybe 10 investors in the country buying reverse products, there are limited resources and knowledge available to lenders," adds Michael Mooney, wholesale and correspondent sales director for MetLife Home Loans, a unit of MetLife Bank NA. "Partnering with Lenders One provides us a great opportunity not only to help those lenders already offering reverse mortgages, but also to help more small- to mid-sized lenders venture into this special market and support them with an appropriate level of understanding to be successful."
SOURCE: Lenders One Mortgage Cooperative