Key facts
- Finance of America acquired reverse mortgage servicing rights from Onity Mortgage Corp.
- The acquisition was an all-cash transaction.
- The deal is valued at $5.2 billion.
- Approximately 20,000 HECMs were acquired.
- The acquired HECMs have an unpaid principal balance of $5.2 billion.
- The acquisition is expected to strengthen Finance of America's market leadership in reverse mortgages.
Finance of America (FOA) has finalized an all-cash acquisition of reverse mortgage servicing rights from Onity Mortgage Corp. The transaction involves the addition of approximately 20,000 Home Equity Conversion Mortgages (HECMs) to FOA's existing portfolio. These acquired loans carry an unpaid principal balance totaling $5.2 billion. This strategic move is designed to bolster FOA's standing in the reverse mortgage market. By integrating Onity's assets, Finance of America aims to enhance its market leadership and expand its operational capacity within this specialized segment of the mortgage industry. The company anticipates that this acquisition will contribute to its continued growth and influence in the reverse mortgage sector.