WILMINGTON, Del., May 2, 2008 (PRIME NEWSWIRE) -- WSFS Financial
Corporation (NasdaqGS:
WSFS -
News), the parent company of WSFS Bank,
today announced the purchase of a majority stake in 1st
Reverse Financial Services, LLC (1st Reverse), an Illinois-based
reverse mortgage company specializing in wholesale reverse
mortgage lending through brokers and financial institutions
throughout the United States. 1st Reverse generates fee
income by providing high-touch training, underwriting and
loan processing to its bank and mortgage broker customers
to enable them to offer reverse mortgages in their markets.
A reverse mortgage allows homeowners age 62 or older to
convert some of the equity in their home into tax-free cash,
a line of credit, monthly income or a combination of the
three. There is no mortgage payment and repayment of the
loan is not made until the homeowner permanently leaves
the home. Most reverse mortgages are government-insured
products.
This initiative comes at an opportune time when the first
baby boomers are reaching the age of 62 and approaching
retirement. With more than 7,440 seniors a day turning 62
over the next three years, and many seniors living longer
in retirement, WSFS expects there will be a high demand
for reverse mortgages.
According to the Employee Benefit Research Institute, nearly
50% of workers have set aside less than $25,000 for their
retirement. In addition, only 1% of eligible seniors currently
have a reverse mortgage, providing a largely untapped market
for this product. The reverse mortgage product is a natural
way for seniors who have built considerable equity in their
homes to live more comfortably in their homes for their
longer retirements.
``In addition to WSFS' long history and extensive experience
with the reverse mortgage business, this acquisition is
the right investment in the right industry at the right
time, especially as baby boomers need more choices to finance
their retirements,'' said Mark A. Turner, WSFS President
and CEO. ``1st Reverse has been making loans for more than
a year now and, to reach its significant potential, will
need the investment and resources that WSFS can provide.
As with many new initiatives, we expect modest start-up
losses in the first year, but believe the revenue and profit
opportunities of providing this product are great.''
``WSFS has almost 15 years of success with reverse mortgages.
More recently we have had success in originating reverse
mortgage loans in our local footprint through our retail
branch network. That success, under the leadership of Vice
President Trish Kauker, will continue. This acquisition
will allow WSFS to expand on that knowledge and experience,''
continued Mr. Turner.
WSFS Bank assumed majority ownership as of April 30, 2008.
As an operating subsidiary of WSFS Bank, 1st Reverse will
continue to operate under their existing name and will remain
headquartered in Westmont, Illinois located in suburban
Chicago. The management team led by 1st Reverse President
Ralph E. Rosynek, Jr., David J. Cesario, and Terry R. Bivins
will continue to run 1st Reverse. All are former presidents
of the Illinois Mortgage Brokers Association and collectively
have more than 20 years combined experience in the reverse
mortgage industry. Larry E. Ferries, the fourth member of
the management team, is a former field manager with the
more than 20 years at the Office of Thrift Supervision (OTS).
``Our partnership with WSFS expedites 1st Reverse's rise
to being one of the preeminent reverse mortgage lenders
in the nation. Our shared commitment to providing excellent
products, service and resources provides consumers and our
business partners with access to one of the strongest reverse
mortgage lending providers in the country,'' said Rosynek.
``Additionally, we will be able to expand on a more national
basis with more resources behind us to offer our concierge
level of service to lenders and correspondents who want
to provide this senior-friendly product to their customers.''
About WSFS Financial Corporation
WSFS Financial Corporation is a $3.2 billion financial services
company. Its principal subsidiary, Wilmington Savings Fund
Society, FSB, currently operates 33 retail banking offices
and loan production offices in Delaware, as well as Southeastern
Pennsylvania and Northern Virginia, providing comprehensive
banking services including wealth management and personal
trust services. Other subsidiaries include WSFS Investment
Group, Inc. and Montchanin Capital Management, Inc. Founded
in 1832, WSFS is one of the ten oldest banks in the United
States continuously operating under the same name. For more
information, please visit the Bank's website at http://www.wsfsbank.com.
About 1st Reverse Financial Services, LLC
1st Reverse Financial Services, LLC (1st Reverse) is a Reverse
Mortgage Wholesale Correspondent Lender serving banks and
mortgage lenders nationally. 1st Reverse is well-known for
their ``concierge level'' of service and are trusted providers
of Reverse Mortgage products, training and resources to
FHA approved and non-FHA approved lenders. The company website
at http://www.1stReverse.com provides a wealth of resources to
consumers and lenders seeking information on Reverse Mortgage
Loans.