Finance of America (FOA) has closed an all-cash acquisition of reverse mortgage servicing rights from Onity Mortgage Corp., adding roughly 20,000 Home Equity Conversion Mortgages (HECMs) with a combined $5.2 billion in unpaid principal balance (UPB) to its portfolio, the companies announced Wednesday.

The deal, disclosed by FOA in an 8-K filing with the Securities and Exchange Commission (SEC), transfers Ginnie Mae servicing rights from Onity. Finance of America said in a press release that the acquisition materially expands its servicing footprint and its customer base of homeowners ages 55 and older who use home equity as part of their retirement strategy.

The companies gained approval for the deal from Ginnie Mae in early June. The initial proposal included roughly 40,000 loans with $9.6 billion in UPB, but Ginnie Mae did not grant approval to those terms.

FOA will also acquire Onity’s pipeline of reverse mortgage loans, and Onity will exit the reverse mortgage originations business. Onity expects total proceeds of $70 million to $80 million from the transaction, based on the book value of the assets as of April 30. It expects to use the funds to support growth, reduce debt and for other corporate purposes.

Subservicing agreement solidified

As part of the transaction, Finance of America has retained Onity Mortgage as a subservicer under a three-year agreement. That structure is designed to maintain continuity for borrowers while FOA integrates the portfolio and diversifies its servicing operations with an external partner.

“Completing this transaction represents an important milestone in our growth strategy,” Graham Fleming, CEO of Finance of America, said in a statement. “We are pleased to welcome these customers to our platform while establishing a meaningful servicing relationship with Onity. This acquisition strengthens our market leadership and enhances our ability to deliver innovative reverse mortgage solutions to more American homeowners.”

“We are pleased to complete this transaction with (FOA), which repositions our role in the reverse mortgage market,” said Glen A. Messina, chair, president and CEO of Onity Group. “This strategic transaction establishes a significant subservicing relationship with (FOA), simplifies our business, and enables increased focus on more substantial growth and earnings opportunities. We look forward to our continued partnership with (FOA) and to future opportunities.”

The acquisition comes as more lenders look to scale in reverse mortgages and home equity-based products amid an aging homeowner demographic, high home equity levels, and a purchase and refinance market still constrained by elevated interest rates.

FOA strengthens grasp as Onity pivots

The deal is likely to further strengthen FOA’s position as a leader in reverse mortgage and senior-based lending solutions.

Data published Wednesday by HECMWorld.com and Reverse Market Insight showed the company widened its lead in HECM retail originations leaderboard in the first half of 2026. FOA endorsed nearly 2,500 HECM loans from January through June and currently holds a 23.3% market share.

Last week, the company announced three new hires who will target brand and product alignment. The appointments come roughly six months after FOA hired Angela Tribelli, a former executive at Bloomberg Media, as its chief marketing officer.

For Onity, the sale builds on a recently completed, multistage rebranding effort. The company officially discontinued the PHH Mortgage Corp. and Liberty Reverse Mortgage brands in late March. Last year, Liberty was the fifth-largest HECM originator in the country with 1,166 endorsements, up slightly from 1,125 in 2024.

This article was written by Neil Pierson and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.

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