DivestmentJul 1, 2026, 04:16 PM
Onity Sells Reverse Mortgage Assets for $70-80M; Enters Subservicing Deal
AI Summary
Onity Group Inc. announced that its subsidiary, Onity Mortgage Corporation, completed the sale of reverse mortgage servicing rights (MSRs) to Finance of America Reverse LLC (FAR). The transaction, effective June 30, 2026, involved approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion. Onity Mortgage will continue to subservice these MSRs under a three-year agreement and has ceased originating reverse mortgages. The company expects net proceeds of $70 million to $80 million, which will be used to support growth, reduce debt, and for other corporate purposes.
Key Highlights
- Onity Mortgage sold reverse mortgage servicing rights (MSRs) to Finance of America Reverse LLC (FAR).
- The MSRs comprised approximately 20,000 Ginnie Mae HECM loans.
- The loans had an unpaid principal balance of $5.2 billion as of May 31, 2026.
- Onity Mortgage entered a three-year subservicing agreement with FAR for the sold MSRs.
- FAR acquired Onity Mortgage’s pipeline of reverse mortgage loans.
- Onity has ceased originating reverse mortgages.
- Net proceeds from the transaction are expected to be $70 million to $80 million.
- Proceeds will be used to support growth, reduce debt, and for other corporate purposes.
Price Impact
More from ONIT