Reverse Mortgager Backed by Starwood Wins $13M Bankruptcy Loan

Bankrupt Reverse Mortgage Funding LLC won court approval to borrow $13 million to fund payments to its senior citizen customers while the company winds down operations and finishes a deal to turn over its loan servicing business to Longbridge Financial.

• Reverse Mortgage, which is backed by Starwood Capital, is close to an agreement with Longbridge, Anthony Grossi, an attorney for Reverse Mortgage, said during a court hearing Monday morning
• The company loans money to older homeowners, then bundles those loans into bonds to be sold; the loans allow borrowers to convert equity into cash without making monthly payments. ...