Reverse Mortgage Solutions had taken quite the hit for the second quarter of 2018, according to a recent report. With $29.6 million in pre-tax losses, the company is explaining the loss as an effect of the Ginnie Mae buyouts.
"In addition to elevated fair value losses, Ditech Holding Corporation (NYSE: DHCP) pointed to an extra $9.7 million in borrowing costs related to mandatory buyouts of Ginnie Mae securities as a key reason for the reverse segment’s lackluster second quarter," according to Reverse Mortgage Daily.
“We are proactively managing buyouts in the reverse segment to continue to stabilize the business,” chief financial officer Jerry Lombardo said on the company’s earnings call last week, according to the report.
The company doesn't plan on letting these losses slide. The report revealed that the company plans on going to the drawing board in hopes to develop strategic plans for "more favorable financing terms of reverse Ginnie Mae buyouts."
To learn more about Reverse Mortgage Solutions and current issues with Ginnie Mae buyouts, click on the image.