FirstBank has decided to step away from the reverse mortgage, third-party origination and correspondent businesses, according to a recent report from Reverse Mortgage Daily.
"The reasoning for FirstBank’s exit from the reverse mortgage business appears to be part of a strategic move to reduce the company’s overall mortgage footprint, according to Dan Barksdale, formerly FirstBank’s VP director of specialty products and now director of HECM lending at Mid America Mortgage," according to RMD.
The bank has gone from five mortgage divisions to a two, keeping its foot in the retail business. Barksdale and the reverse mortgage team are partnering with Mid America Mortgage to transition their efforts for a new company.
"While not entirely sure about how interested Mid America was in the reverse space previously, they had already been assigned a HECM designation, helping to make the transition out of FirstBank and into Mid America a bit easier from the get-go," according to the report.
"Additionally, the majority of Barksdale’s previous team at FirstBank will be joining him at Mid America on the ground level of building a new HECM lending arm of the business."
To learn more about the transition, click on the image above.