Industry News

BofA buys reverse-mortgage business

Deal includes sales force in 25 states

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Bank of America has acquired a Seattle-based lender's reverse-mortgage business, including the company's retail sales force of more than 200 people in 25 states. All 400 employees of Seattle Mortgage Co. were offered positions with BofA as part of its acquisition of Reverse Mortgage of America, Seattle Mortgage's reverse-lending division, a BofA spokesman said. About 350 accepted the offer. Terms of the deal were not disclosed, but BofA spokesman Terry Francisco said Seattle Mortgage's reverse-mortgage portfolio consists of 40,000 loans with outstanding balances of more than $4 billion. BofA appointed Reverse Mortgage of America's former chief operating officer, John Nixon, as the bank's reverse-mortgage origination executive. "We now have the distribution and delivery power to reach more seniors who are actively seeking innovative financial solutions to meet their retirement needs," Nixon said in a press release issued by BofA. "We also expect to expand our commitment to the wholesal...