DivestmentJun 2, 2026, 06:46 AM
Onity Group Receives Approval for Reverse Mortgage Sale; $20M Buyback
AI Summary
Onity Group Inc. announced regulatory approval for the sale of its reverse mortgage servicing portfolio and certain origination assets to Finance of America Reverse LLC (FAR). The transaction involves approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.1 billion, with Onity becoming the subservicer for three years. Net proceeds are expected to be $70 to $80 million. Additionally, the company's Board of Directors authorized a share repurchase program for up to $20 million of its common stock, reflecting a disciplined capital allocation strategy.
Key Highlights
- Onity received regulatory approval for the sale of its reverse mortgage servicing portfolio to Finance of America Reverse (FAR).
- The transaction involves selling reverse mortgage servicing rights for approximately 20,000 Ginnie Mae loans.
- The unpaid principal balance of the loans is $5.1 billion as of March 31, 2026.
- Onity will become the subservicer for the sold MSRs under a three-year agreement.
- Net proceeds from the transaction are expected to be $70 to $80 million.
- Onity's Board authorized a share repurchase program for up to $20 million.
- The share repurchase program will continue through June 2027, unless completed earlier.
Price Impact
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