Finance of America Completes $5.2B Reverse Mortgage Servicing Acquisition
FOA sits 77% above its 52-week low of $15.77.
Summary
Finance of America's subsidiary, FAR, has completed the acquisition of Onity Mortgage Corporation's reverse mortgage servicing portfolio, including $5.2 billion in HECM loans. This strategic move significantly expands the company's market leadership in home equity-based retirement solutions.
Key Events · M&A and Partnerships · FOA
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Acquisition Closed
Finance of America Reverse LLC (FAR), an indirect subsidiary, completed the previously announced purchase of Onity Mortgage Corporation's reverse mortgage servicing portfolio and certain reverse originations assets.
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Significant Portfolio Expansion
The acquisition includes mortgage servicing rights for approximately 20,000 Home Equity Conversion Mortgage (HECM) loans, representing an unpaid principal balance of $5.2 billion.
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Strategic Subservicing Agreement
In connection with the transaction, a three-year subservicing arrangement was entered into with Onity Mortgage Corporation.
Analysis · FOA · Finance
This 8-K announces the successful closing of a previously announced acquisition, which is a critical step in Finance of America's growth strategy. The purchase of $5.2 billion in Home Equity Conversion Mortgage (HECM) loans' servicing rights from Onity Mortgage Corporation substantially expands Finance of America Reverse's portfolio and customer base, reinforcing its position as a leading provider in the reverse mortgage market. The completion of this all-cash transaction demonstrates the company's ability to execute on its strategic initiatives and grow its core business.
At the time of this filing, FOA was trading at $27.90 on NYSE in the Finance sector, with a market capitalization of approximately $248.1M. The 52-week trading range was $15.77 to $29.79. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.