Onity to Sell Reverse Mortgage Portfolio for $105-115M
Onity Group Inc. announced an amendment to its agreement with Finance of America Reverse LLC (FAR) to sell its reverse mortgage servicing portfolio and certain origination assets. The transaction involves approximately 20,000 Ginnie Mae HECM loans with a UPB of $5.1 billion, expected to generate $105-115 million in cash proceeds before costs, and $70-80 million net. Onity Mortgage Corporation (OMC) will become the subservicer for three years and will discontinue its reverse originations business. Additionally, Onity reported Q1 2026 results, including $7 million net income, $0.74 diluted EPS, and $294 million in total revenue, up 18% year-over-year. The company updated its adjusted ROE guidance to 10-15% from 13-15% due to ongoing rate volatility.
Key Highlights
- Onity to sell reverse mortgage servicing portfolio for estimated $105-115 million cash.
- Net proceeds from the reverse mortgage sale are expected to be $70-80 million.
- Portfolio includes approximately 20,000 HECM loans with $5.1 billion UPB.
- Q1 2026 net income attributable to common stockholders was $7 million.
- Q1 2026 diluted EPS was $0.74.
- Q1 2026 total revenue was $294 million, up 18% year-over-year.
- Ending servicing UPB reached $338 billion, up 11% year-over-year.
- Updated 2026 adjusted ROE guidance to 10-15% from 13-15%.