A company with its headquarters in Southern California reported that it has issued more than $6 billion in reverse mortgage-backed securities since its inception.
Since launching in 1980, Sun West Mortgage Company Inc. says its issuance of home-equity conversion mortgage MBS exceeded $6 billion.
The Cerritos, Calif.-based firm sees HECM MBS issuance as essential.
“Securitization is the key in today’s markets, leading to attractive investor yields while increasing liquidity in the capital markets,” Sun West executive Pavan Agarwal said in the statement.
HECMs are insured by the Federal Housing Administration and issued through Ginnie Mae.
Sun West, which markets a reverse mortgage origination and servicing system, says it operates in 45 states.
It ranked as the fifth-biggest wholesale originator of HECMs during October.
In December 2009, Sun West agreed to a $10,000 civil money setllement with the Department of Housing and Urban Development.
HUD, which issued a letter of reprimand, said that the mortgagee didn’t have a necessary HECM state license & failed to notify HUD of a cease-and-desist order.
