- September 7, 2024
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TAMPA — Walter Investment Management Corp. announced it has entered an agreement to purchase Reverse Mortgage Solutions Inc. in a $120 million transaction.
According to a news release, the transaction will consist of $60 million in cash, $25 million in Walter's stock and a seller MSR note of $35 million. Walter estimates the transaction to equal about 2.6 times the expected EBITDA for RMS in 2012.
RMS provides reverse mortgage services, including loan origination, servicing, asset management and technology. The Spring, Texas-based company currently services $12 billion in reverse mortgages, the fourth-largest in the sector.
The acquisition will help Tampa-based Walter Investment expand its reverse mortgage servicing offerings. In a release, Walter says RMS is an “attractive extension to Walter Investment's high-margin, fee-for-service business model.”
The deal is subject to regulatory approvals. The companies expect to complete the transaction in the fourth quarter.