Liberty Reverse Mortgage sells for $50 Million
Genworth Financial is buying local Sacramento reverse mortgage company Liberty Reverse Mortgage Inc. for $50 million in cash.
Liberty Reverse Mortgage, a 2003 startup in Rancho Cordova, is now one of the largest originators of reverse mortgages in the United States. It also has a division that buys reverse mortgages from other mortgage companies.
A reverse mortgage allows homeowners age 62 and over to borrow against their home equity. The loan is insured to guarantee payment, and it doesn’t end until the homeowner sells the house, moves or dies.
The company was started by Scott Hanson and Pat McClain, who also own Hanson McClain Retirement Planning. They are the majority owners of Liberty, which they spun off as a separate company.
Genworth Financial will merge Liberty into its subsidiary Senior Financial.
Genworth Financial is a financial security company that offers retirement, mortgage insurance and other products to its 15 million customers.