Walter Investment Management Corp. Completes Acquisition Of Reverse Mortgage Solutions, Inc.
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 (WAC) 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."
About Walter Investment Management Corp.
Walter Investment Management Corp. is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets. Based in Tampa, Fla., the Company has over 2,600 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company's website at www.walterinvestment.com.
About Reverse Mortgage Solutions, Inc.
Reverse Mortgage Solutions, Inc. provides a full suite of services to the reverse mortgage sector including servicing, sub-servicing, loan origination and securitization, and technology. Based in Spring, Tex., RMS has approximately 330 employees. For more information about Reverse Mortgage Solutions, Inc., please visit the RMS website at www.rmsnav.com.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to Walter Investment's investment strategy, financial condition, results of operations, plans, objectives, future performance or expectations and business operations. These statements relate to expectations concerning matters that are not historical facts. Accordingly, statements that are based on management's projections, estimates, assumptions and judgments constitute forward-looking statements. Words such as "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "assumes," "may," "should," "will," or variations of these words and similar expressions are intended to identify these forward-looking statements. These forward-looking statements are based largely on information currently available to Walter Investment's management and on Walter Investment's current expectations, assumptions, plans, estimates, judgments and projections about its business and its industry. These statements are not guarantees of future performance and are subject to a number of known and unknown risks, uncertainties, contingencies and assumptions, many of which are outside Walter Investment's control, that are difficult to forecast. Actual results may differ materially from those expressed or forecast in these forward-looking statements. Accordingly, there is no assurance that Walter Investment's expectations will in fact occur or that its estimates or assumptions will be correct, and Walter Investment cautions investors and all others not to place undue reliance on such forward-looking statements. Factors that could cause the forward looking statements to be materially different include: the availability of suitable investments for the capital Walter Investment raises and competition for such investments, at times from larger competitors; the occurrence of anticipated growth of the specialty servicing sector; the continuation of the secular shift in the servicing industry that is underway; and other factors, risks and uncertainties described in exhibit 99.3 to Walter Investment's Current Report on Form 8-K filed on October 15, 2012 and other factors, risks and uncertainties described under the caption "Risk Factors" in Walter Investment's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in Walter Investment's most recent Quarterly Report on Form 10-Q filed on August 9, 2012, and in Walter Investment's other filings with the SEC. This press release speaks only as of this date. Walter Investment disclaims any duty to update the information herein.
SOURCE Walter Investment Management Corp.