Cornerstone Financing provides $285 million for equity product
Cornerstone Financingthrough global investment firms, a venture founded by former (RMF) CEO Craig Corn Aquiline Capital Partners LP and Nomura.
The funding will go to support the company's specialty home equity product known as Cornerstone Home Equity Insurance/Investment Financing Solutions (CHEIFS). The product works the same way. It allows homeowners to sell a portion of their home equity for cash to specifically fund “insurance, annuities, long-term care and other financial and life planning options,” the company said.
“Partnering with these prestigious institutions reaffirms our commitment to providing advisors with innovative home equity solutions,” said Daniel Anderson, who co-founded Cornerstone Financing with Corn.
CHEIFS is currently available in four states: , , and . Backed by the new funding round, the company has national expansion ambitions and is looking for new distribution partnerships.
The company describes the purpose of the product as “using previously untapped home equity to provide superior estate, insurance and investment planning through trusted advisors.”
Timothy Gravely, partner and head of credit at Aquiline, added that the firm got involved because of the unrealized potential for using home equity to bridge the gap.
“We are proud to support Cornerstone in the expansion of CHEIFS,” said Gravely. “This product addresses a critical gap we've seen with our presence in the insurance market, and we're excited to support the solution.”
Corn is a long-time reverse mortgage industry professional and has held leadership positions Financial Freedom and EverBank Reverse Mortgageand as vice president of the reverse mortgage division. In 2013, Corn and his partners became a leading reverse mortgage lender.
As of early November 2022 (RMI) Home Equity Conversion Mortgage (HECM) approval data – before and after only – RMF was the fifth largest HECM lender in the country with 4,804 approvals during the 12-month period. ended on October 31 of that year.
After the collapse of RMF and by, Corn and Anderson went on to launch Cornerstone Financing in May 2023.
