Finance of America Companies announced the expanded launch of its HomeSafe Second, a second-lien reverse mortgage product. HomeSafe Second allows eligible homeowners 55 and older to tap their home equity with a second mortgage without adding a new monthly payment. Beginning in November, HomeSafe Second will be offered through Finance of America’s direct-to-consumer division, AAG. In addition to the AAG expansion, HomeSafe Second will be made available to wholesale partners via the Reverse Vision loan origination system.
Homestar Financial Corp. announced that it will shutter its retail mortgage operations. It will continue accepting mortgage locks through Oct. 31 and fund all locked loans in its pipeline. A statement from the company pointed to “additional mortgage volatility” driven by increasing rates and macroeconomic turmoil. “As we head into a period of historically seasonal lows, for protection, with no end in sight for the margin compression or realistic prospects of lower rates, I have decided not to incur further financial risk over the coming months,” CEO Wes Hunt said.
PBCO Financial Corp., the holding company for People’s Bank of Commerce, announced today that it has made the strategic business decision to exit the residential mortgage lending market, effective Nov. 1. Company president and CEO Julia Beattie cited “industry trends and the current interest rate environment [that] have made it challenging for this division to remain profitable in recent years” for the exit. The company anticipates one-time termination expenses of $350,000 in the fourth quarter of 2023 that are associated with severance and contract termination fees.