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The world's oldest and largest custody bank is counting its recently launched Continuous Process Improvement strategy to drive its transformation and bolster its bottom line.
June 12 -
Bank of New York Mellon (BK) has named a president for its corporate trust business.
May 28 -
Bank of New York Mellon (BK) has agreed to take full ownership of HedgeMark International.
February 26 -
Ginnie Mae is declaring its reverse mortgage securitizations off-limits for a new type of product that would require the servicer to take interest rate risk.
April 3
The Bank of New York Mellon (BK) is planning to enter the reverse mortgage business.
Through its Home Equity Retirement Solutions program, which is expected to be implemented before the end of 2014, the bank will purchase, securitize and service reverse mortgages and offer seniors cash to supplement their retirement plans.
The program will also provide advisory services to brokers, financial advisors, and asset managers about how a reverse mortgage is a responsible lending approach for a retirement portfolio.
"Many retirees face a significant financial shortfall. We view the funds generated by suitable reverse mortgages as an additional fixed-income component of retirement portfolios, an important part of retirement planning that complements other aspects of the plan," Michael Gordon, managing director of non-traditional solutions and special situations for BNY Mellon Investment Management, said in an interview with American Banker.
Gordon believes there is a "substantial market need" for this type of program. He noted that many actions have taken place in the last couple of years to support the reverse mortgage business, such as the
BNY Mellon will offer reverse mortgages through a variety of distribution parties, including brokers and fee-based advisors. When originators close their loans, BNY Mellon will re-underwrite them to determine if they are suitable for securitization.
"We think this is a really positive, from a socially responsibility perspective, program to get people into more sustainable retirement plans with sustainable homeownership so they can age in place," Gordon said.