AcquisitionsMay 5, 2026, 04:09 PM
Finance of America to Acquire $5.1B HECM MSRs from Onity
AI Summary
Finance of America Reverse LLC (FAR), a subsidiary of Finance of America Companies Inc., has amended its agreement with Onity Mortgage Corporation to acquire mortgage servicing rights (MSRs) for approximately 20,000 home equity conversion mortgage (HECM) loans, totaling $5.1 billion in unpaid principal balance. The deal also includes Onity's reverse mortgage loan pipeline and the assumption of certain US-based reverse originations employees. Onity will continue as the subservicer for the acquired MSRs for three years and will discontinue its reverse originations business. The transaction is subject to customary closing conditions, including consent from the Government National Mortgage Association.
Key Highlights
- Finance of America Reverse to acquire MSRs for ~20,000 HECM loans.
- HECM loans have an unpaid principal balance of $5.1 billion as of March 31, 2026.
- FAR will also acquire Onity Mortgage Corporation's reverse mortgage loan pipeline.
- FAR expects to assume certain US-based reverse originations employees.
- Onity will become the subservicer for the HECM MSRs for a three-year term.
- Onity has agreed to discontinue its reverse originations business.
- Transaction is subject to Government National Mortgage Association consent.
- Either party can terminate if the transaction is not consummated by August 1, 2026.