Key facts
- Finance of America (FOA) acquired Onity Mortgage Corp.'s reverse mortgage servicing rights and loan pipeline.
- The deal adds approximately 20,000 Home Equity Conversion Mortgages (HECMs) with a $5.2 billion unpaid principal balance to FOA's portfolio.
- FOA will serve as a subservicer for Onity under a three-year agreement.
- Onity expects to receive $70 million to $80 million in proceeds from the transaction.
- FOA maintained its position as the top HECM lender in June 2026 with a 23.3% market share year-to-date.
Finance of America (FOA) has finalized an all-cash acquisition of reverse mortgage servicing rights from Onity Mortgage Corp., significantly expanding its portfolio with approximately 20,000 Home Equity Conversion Mortgages (HECMs) valued at $5.2 billion in unpaid principal balance (UPB). This strategic move, approved by Ginnie Mae, also includes Onity's reverse mortgage loan pipeline, while Onity exits the origination business. Onity expects to receive between $70 million and $80 million from the transaction, which it plans to use for growth, debt reduction, and other corporate purposes. As part of the deal, Finance of America has entered into a three-year subservicing agreement with Onity to ensure borrower continuity during the integration process. FOA CEO Graham Fleming stated the acquisition is a key milestone in their growth strategy, enhancing their market leadership and ability to serve older homeowners. Onity's CEO Glen A. Messina noted the transaction repositions their role in the market and simplifies their business for future growth opportunities. The acquisition occurs amid a growing demand for reverse mortgages driven by an aging demographic, high home equity levels, and persistent high interest rates impacting traditional purchase and refinance markets. This deal is expected to further solidify FOA's position as a leader in reverse mortgage solutions. Data from HECMWorld.com and Reverse Market Insight shows FOA widened its lead in HECM retail originations for the first half of 2026, holding a 23.3% market share with nearly 2,500 loans endorsed.