Starwood-Backed Reverse Mortgage Funding Files for Bankruptcy

Nov. 30, 2022, 5:28 PM UTC

Starwood Capital-backed home lender Reverse Mortgage Funding LLC filed for Chapter 11 bankruptcy, the latest company to succumb amid a rapid run-up in mortgage rates.

The company, which makes reverse mortgages, listed assets and liabilities of at least $10 billion each in its bankruptcy petition. Chapter 11 bankruptcy allows companies to keep operating while they work on a plan to repay creditors.

Reverse mortgages, a type of home loan geared toward seniors, allow borrowers to convert equity in their homes into cash without needing to sell or pay more monthly bills.

Read More: Mortgage Lenders Are Starting to Go ...





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