Finance of America Reverse LLC has entered into an agreement to acquire the home equity conversion mortgage (HECM) servicing portfolio, and certain other reverse mortgage assets, from PHH Mortgage Corporation, a subsidiary of Onity Group Inc.
In an all-cash transaction, Finance of America will also acquire PHH’s pipeline of reverse mortgage loans, bring select members of PHH’s origination team into its platform and enter into a subservicing agreement with PHH, allowing for operational continuity, while also diversifying Finance of America’s servicing footprint.
Following the transaction, Finance of America and PHH will engage to make Finance of America’s second-lien reverse mortgage product — HomeSafe Second — available to PHH’s tens of thousands of eligible forward mortgage customers.
“Today’s announcement represents a major step forward in our growth strategy,” said Graham Fleming, chief executive officer of Finance of America. “Beyond the value of acquiring high-quality assets, we anticipate that our expanded relationship with Onity will meaningfully multiply our origination reach. Making our one-of-a-kind HomeSafe Second loan available to eligible borrowers in PHH’s forward mortgage servicing portfolio will position us to serve thousands more older homeowners seeking flexible ways to access their home equity. It’s a powerful catalyst for long-term, profitable growth.”
The net proceeds from the transaction and related adjustments are estimated to be $100 to $110 million, subject to change based on the closing date asset balances. The transaction, approved by the boards of each of FOA and Onity, is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
“We are pleased to announce our partnership with Finance of America Reverse, a strategic step that we believe will simplify our business and enable us to concentrate our resources on maximizing the growth and earnings of forward originations and recapture, as well as our commercial and reverse subservicing activities,” said Glen A. Messina, chair, president and CEO of Onity. “We look forward to working with FAR to successfully close this transaction and expand our partnership. We are committed to creating a smooth transition for our employees and believe that FAR will benefit from our team's passion and expertise in the reverse originations business.”
