Walter Investment Management Corp. Responds to FHA's Actions in Reverse Mortgage Program

Walter Investment Management Corp.(NYSE: WAC) ("Walter Investment" or the "Company") today responded to theFHA's announced moratorium on its Full-draw HECM Reverse Mortgage product.The Company indicated that while approximately 90% of 2012 originations at itsReverse Mortgage Solutions subsidiary were in the Full-draw HECM ReverseMortgage product, it expects to be able to redirect most of the expecteddemand for that product into other reverse mortgage products after theFull-draw product is discontinued. While the Company expects the transition ofborrowers to the HECM Variable Rate Standard and HECM Fixed Rate and VariableSaver products will likely result in a reduction to the average size of theinitial draws for these borrowers, it anticipates that the impact to ReverseMortgage Solutions' overall origination volume will not be significant, asdemand for the reverse mortgage product is largely needs-based and less drivenby the product's interest features.The Company also strongly supports other changes being considered by FHA forthe program, including establishing formal guidelines for conducting financialassessments of borrowers and the creation of set-asides for the payment oftaxes and insurance, which the Company believes will enhance the long-termattractiveness and viability of the reverse mortgage product.