Cornerstone Financinga business established jointly by the former Reverse Mortgage Funding (RMF) CEO Craig Corn, has secured $285 million in funding from global investment firms. Company valuation Aquiline Capital Partners LP again Nomura.
The funding will go hand in hand with supporting the company’s unique home equity product known as Cornerstone Home Equity Insurance/Investment Funding Solutions (CHEIFS). The product works similarly to shared equity investments. It allows homeowners to sell a portion of their home equity for cash to directly fund “insurance, annuities, long-term care, and other financial and life planning options,” the company said.
“Partnering with these respected institutions reaffirms our commitment to providing advisors with innovative home equity solutions,” said Daniel Anderson, who co-founded Cornerstone Financing alongside Corn.
CHEIFS is currently available in four states: Arizona, California, Florida and Pennsylvania. Backed by a new round of funding, the company has ambitions to expand nationally and is looking for new distribution partnerships.
The company describes the product’s mission as aiming to “use unprecedented home equity to enable superior wealth, insurance, and investment planning through trusted advisors.”
Timothy Gravely, a partner and head of credit at Aquiline, added that the company is participating because of the potential potential of using home equity to address the retirement deficit.
“We are proud to support Cornerstone in expanding CHEIFS,” said Gravely. “This product addresses a critical gap we have identified in our participation in the insurance market, and we are excited to provide a solution.”
Corn is a long-time mortgage broker, who has served in leadership roles at Financial Freedom again EverBank Reverse Mortgageand as vice president of MetLife‘s reverse mortgage division. In 2013, Corn and his partners launched RMF, which became a leading mortgage lender.
According to Home Equity Conversion Mortgage (HECM) data compiled by Reverse Market Insight (RMI) in early November 2022 — shortly before its origination freeze and subsequent bankruptcy — RMF became the nation’s fifth-largest HECM lender, with 4,804 recommendations in the 12-month period ending Oct. 31 of that year.
Following the collapse of RMF and the consideration of its servicing portfolio by Ginny MaeCorn and Anderson went on to launch Cornerstone Financing in May 2023.
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