Reverse Mortgage Loan Blog

A Virginia company is buying Rancho Cordova-based Liberty Reverse Mortgage, the nation’s largest non-bank source of reverse mortgages for senior citizens, in a $50 million deal expected to close late this year.

Richmond-based Genworth Financial Inc. subsidiary Senior Financial will buy the firm begun in 2004 by owners of a local financial services advisory business, Scott Hanson and Pat McClain. The sale is subject to state and federal approvals.

Officials of both firms said they expect it to close during the fourth quarter.

“Genworth has a big retirement focus and a commitment to the senior market,” said Liberty founder Hanson. “This gives them additional products to offer to their customer base.”

Hanson said the Liberty name will remain, as well as the Rancho Cordova office and management team. The firm has about 150 employees.

Reverse mortgages, now a tiny slice of the mortgage business, are expected to become widespread in coming years as the baby boom generation retires. Reverse mortgages allow people over 62 to borrow from their home equity and receive monthly payments until they sell the house, move or die.

Genworth, a financial services company, has 7,200 employees.

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