DivestmentJul 1, 2026, 04:18 PM
Onity Sells Reverse Mortgage Portfolio for $70-80M; Exits Origination
AI Summary
Onity Group Inc. completed the sale of its reverse mortgage servicing portfolio and certain origination assets to Finance of America Reverse LLC on June 30, 2026. The transaction involved approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion and Onity's reverse mortgage loan pipeline. Onity expects net proceeds of $70 million to $80 million, which will be used for growth, debt reduction, and corporate purposes. The company also entered into a three-year subservicing agreement with FAR and has ceased originating reverse mortgages, aiming to simplify its business and focus on other growth opportunities.
Key Highlights
- Onity Group Inc. completed the sale of its reverse mortgage servicing portfolio and certain origination assets.
- The portfolio included approximately 20,000 Ginnie Mae HECM loans.
- The unpaid principal balance of the sold loans was $5.2 billion as of May 31, 2026.
- Net proceeds from the transaction are expected to be $70 million to $80 million.
- Onity entered into a three-year subservicing agreement with Finance of America Reverse LLC.
- Onity Group Inc. has ceased originating reverse mortgages.
Price Impact
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