Finance of America Reverse LLC, the operating subsidiary of Finance of America Companies Inc. (NYSE: FOA), announced an agreement to acquire the home equity conversion mortgage servicing portfolio from PHH Mortgage Corporation, a subsidiary of Onity Group Inc. (NYSE: ONIT).
The acquisition includes certain other reverse mortgage assets and a subservicing agreement with PHH to enhance operational continuity and servicing footprint.
The strategic acquisition is expected to strengthen Finance of America's market leadership and establish a long-term relationship with Onity, accelerating their mission to provide responsible home equity access to more homeowners.
Strategic Acquisition
Finance of America to acquire HECM servicing portfolio and reverse mortgage assets from PHH Mortgage Corporation, expected to be immediately accretive to earnings and cash flow.
New Distribution Channel
Expanded relationship with PHH to offer Finance of America's proprietary second-lien reverse mortgage product to PHH's forward mortgage customers, opening a new distribution channel for the product suite.
Growth Strategy
Anticipated multiplication of origination reach and profitable growth through the acquisition, approved by both FOA and Onity boards.
- The acquisition is set to grow Finance of America's high-quality servicing platform and broaden its reach through an expanded relationship with Onity.
- It will pave the way for making the unique HomeSafe Second loan available to thousands of eligible borrowers in PHH's servicing portfolio, enhancing profit potential and origination opportunities.
The agreement between Finance of America and PHH Mortgage Corporation marks a significant milestone in strengthening Finance of America's position in the home equity-based retirement solutions market and expanding their reach through strategic acquisitions and partnerships.