Finance Of America Reverse, the reverse mortgage subsidiary of Finance Of America Companies, has entered into a definitive agreement to acquire the home equity conversion mortgage servicing portfolio and additional reverse mortgage assets from PHH Mortgage, a subsidiary of Onity Group. The all-cash transaction aims to expand Finance of America’s servicing capabilities and reinforce its long-term relationship with Onity.
As part of the acquisition, Finance Of America will obtain PHH’s pipeline of reverse mortgage loans, integrate select members of PHH’s experienced origination team into its platform, and establish a subservicing arrangement with PHH. This partnership is designed to maintain operational continuity while also expanding Finance of America’s servicing infrastructure.
The company expects the transaction to be immediately accretive to earnings, adjusted earnings per share, and cash flow. The purchase will be financed using a combination of warehouse and asset-level facilities, along with available liquidity at the time of closing. According to Finance of America, the acquisition advances its mission of expanding responsible home equity access for homeowners aged fifty-five and older and strengthens its nationwide retirement solutions platform.
Following the closing, Finance Of America and PHH will collaborate to offer Finance Of America’s proprietary second lien reverse mortgage product, HomeSafe Second, to PHH’s substantial forward mortgage customer base. This enhancement to the distribution network is anticipated to significantly broaden exposure to HomeSafe Second and provide new opportunities to serve older homeowners seeking flexible and innovative ways to access home equity.
The boards of both Finance of America and Onity have approved the transaction, which is expected to close in the first quarter of 2026 pending regulatory approval and standard closing conditions. Further details are available in Finance of America’s Form 8 K filing with the Securities and Exchange Commission.
KEY QUOTE:
“Today’s announcement represents a major step forward in our growth strategy. Beyond the value of acquiring high quality assets, we anticipate that our expanded relationship with Onity will meaningfully multiply our origination reach. Making our one of a kind HomeSafe Second loan available to eligible borrowers in PHH’s forward mortgage servicing portfolio will position us to serve thousands more older homeowners seeking flexible ways to access their home equity. It’s a powerful catalyst for long term, profitable growth.”
Graham Fleming, Chief Executive Officer, Finance Of America
