Representatives from Altisource Portfolio Solutions S.A. call a recent deal involving reverse mortgage servicer and subservicer Celink as a “win” for its third quarter. The company expects the deal to generate nearly $13 million in annual revenue, according to a recent earnings call.
Celink retained Altisource as its REO asset manager for a portion of its Home Equity Conversion Mortgage (HECM) portfolio, according to an announcement from Altisource in September.
While Celink has yet to comment on the deal publicly, Altisource has lauded the development for its own business in its Q3 earnings disclosures.
“One of the more notable third quarter wins was the signing of a master services agreement and a statement of work to provide REO asset management, brokerage, auction, valuation and field services on a portion of our reverse mortgage servicer’s REO portfolio,” said Altisource Chairman and CEO Bill Shepro on the earnings call.
This business represents $12.8 million in annual revenue for Altisource, Shepro explained, as well as a range of $3 million to $5 million per year in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
“We began receiving referrals in September and anticipate that we will reach revenue and earnings stabilization by the middle of 2024, if not sooner,” he said.
Altisource noted that it sees a lot of potential in further expansion into the reverse space.
“Since 2009, Altisource has helped manage and sell over 260,000 homes,” said Travis Britsch, SVP and general manager of marketplace at Altisource, in September. “This collaboration with Celink marks an exciting expansion for Altisource into the reverse mortgage REO space, further solidifying Altisource’s position as an end-to-end real estate and mortgage services provider.”
Shepro explained he is pleased with the company’s Q3 2023 performance.
“We generated $874,000 of adjusted EBITDA, a $4.4 million improvement over the second quarter of 2023, and a $7.3 million improvement over the same quarter in 2022,” he said in an announcement of the company’s earnings results.
In addition to the Altisource deal in September, Celink later in the month renewed a subservicing agreement with Mutual of Omaha Mortgage’s reverse division.
