Four years ago, Bank of America made headlines in the reverse mortgage industry by acquiring a turnkey operation and then simultaneously announcing a reverse mortgage program for second homes. This was big news, especially for baby boomers who had significant equity in two homes.
BofA, a latecomer to the reverse mortgage party, came in the door with both barrels blasting. It paid a reported $220 million for Reverse Mortgage of America, the reverse mortgage arm of Seattle Mortgage. Several of Seattle Mortgage's top people also made the switch to BofA, including John Nixon, the executive vice president and chief operating officer of Reverse Mortgage of America.
Seattle Mortgage entered the reverse mortgage industry in 1995. It had a loan portfolio of 40,000