Onity Group Inc. announces a strategic partnership with Finance of America Reverse (FAR)
PHH Mortgage Corporation, a subsidiary of Onity, will reposition in the reverse mortgage market through a subservicing agreement with FAR
Estimated net proceeds from the transaction are expected to be approximately $100 to $110 million
Strategic Relationship with FAR
PHH Mortgage to sell reverse mortgage servicing rights to FAR and become a subservicer for a three-year agreement
Net Proceeds Estimate
Anticipated net proceeds of $100 to $110 million from the transaction, subject to regulatory approval and closing conditions
Business Simplification
Onity aims to simplify its business by focusing on maximizing growth in forward originations and recapture, along with commercial and reverse subservicing activities
- Establishes a significant subservicing relationship with FAR, a leader in the reverse mortgage market
- Eliminates certain assets and liabilities to streamline balance sheet and business model
- Strengthens financial metrics such as liquidity and capital ratio
- Enables increased focus on high-growth markets and services
Onity Group's strategic partnership with Finance of America Reverse marks a pivotal step in simplifying and optimizing its business operations. The anticipated proceeds and benefits resulting from this transaction are expected to drive growth and enhance shareholder value in the coming years.