Reverse Mortgage Loan Blog

Bank of America Corp. has completed its acquisition of Seattle Mortgage Co.’s reverse-mortgage business.

Seattle Mortgage, a subsidiary of Seattle Financial Group Inc., marketed its reverse mortgages under its Reverse Mortgage of America division.

BofA (NYSE: BAC) has run a pilot of its own reverse-mortgages for customers in Arizona since November. In a reverse mortgage, homeowners borrow against the equity in their homes and receive monthly tax-free payments from the lender.

Financial terms of the transaction weren’t announced.

Seattle Mortgage entered the reverse-mortgage industry in 1995. It has a loan portfolio of 40,000 reverse mortgages, totaling more than $4 billion in outstanding balances.

Approximately 400 Seattle Mortgage employees will join BofA. That includes a retail sales force of more than 200 in 25 states and the District of Columbia.

Bank of America, California’s largest bank, was founded in San Francisco in 1904 as the Bank of Italy by A.P. Giannini. The bank was acquired in 1998 by NationsBank, which took the Bank of America name and moved the headquarters to Charlotte, N.C.

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