Proposed acquisition expected to bolster Finance of America’s market leadership and deepen powerful relationship with PHH
Finance of America Reverse LLC (“Finance of America”), the operating subsidiary of Finance of America Companies Inc. (NYSE: FOA) (“FOA”) and the nation’s leading provider of home equity–based retirement solutions, today announced it has entered into an agreement to acquire the home equity conversion mortgage (HECM) servicing portfolio, and certain other reverse mortgage assets, from PHH Mortgage Corporation (“PHH”), a subsidiary of Onity Group Inc. (NYSE: ONIT) (“Onity”), in an all-cash transaction.
In connection with the transaction, Finance of America will also acquire PHH’s pipeline of reverse mortgage loans, bring select members of PHH’s experienced origination team into its platform and enter into a subservicing agreement with PHH, allowing for operational continuity while also diversifying Finance of America’s servicing footprint.
This strategic acquisition is expected to not only grow Finance of America’s high-quality servicing platform but, more importantly, pave the way for a long-term relationship with Onity that accelerates Finance of America’s mission to make responsible home equity access available to more homeowners age 55 and older.
The acquisition is expected to be immediately accretive to earnings, Adjusted Earnings per Share and cash flow. The purchase price will be funded primarily by warehouse and asset-level financing along with available liquidity at the time of closing.
A New Distribution Channel to Drive Growth
Following the transaction, Finance of America and PHH will engage to make Finance of America’s industry-leading proprietary second-lien reverse mortgage product — HomeSafe® Second — available to PHH’s tens of thousands of eligible forward mortgage customers. This expanded relationship is expected to significantly broaden the reach of HomeSafe Second and open a new distribution channel for Finance of America’s differentiated product suite.
“Today’s announcement represents a major step forward in our growth strategy,” said Graham Fleming, Chief Executive Officer of Finance of America. “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.”
The transaction, approved by the boards of each of FOA and Onity, is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. Additional information regarding today’s announcement can be found in Finance of America’s Current Report on Form 8-K concurrently filed with the Securities and Exchange Commission (“SEC”), which is available free of charge at the SEC’s website at www.sec.gov and on Finance of America’s website at https://ir.financeofamericacompanies.com.
