"FOA will acquire PHHs existing pipeline of reverse mortgages and expects to assume some of PHH's US-based reverse originations employees. And while PHH will stop originating reverse loans, it will continue to securitize reverse mortgage buyout loans. PHH agreed to sell reverse MSRs comprised of some 40,000 Ginnie Mae-backed HECMs. The loans had a total unpaid principal balance of $9.6 billion at the end of September."
"PHH will become the subservicer for these loans under a three-year agreement with FOA, which said it has committed to a minimum volume of new subservicing over the term of the subservicing agreement. The transaction is expected to give PHH net proceeds of $100 million to $110 million, based on the asset balances at closing, which is expected in the first quarter of 2026."
"We are pleased to announce our partnership with Finance of America Reverse, a strategic step that we believe will simplify our business and enable us to concentrate our resources on maximizing the growth and earnings of forward originations and recapture, as well as our commercial and reverse subservicing activities, Onity Group CEO Glen Messina said in a statement. We look forward to working with FAR to successfully close this transaction and expand our partnership."
FOA will acquire PHH's existing pipeline of reverse mortgages and is expected to assume some U.S.-based reverse originations employees. PHH will cease originating reverse loans but will continue to securitize reverse mortgage buyout loans. PHH agreed to sell reverse mortgage servicing rights comprising about 40,000 Ginnie Mae-backed HECMs with an unpaid principal balance of $9.6 billion as of the end of September. PHH will serve as subservicer under a three-year agreement while FOA commits to a minimum volume of new subservicing. The transaction is expected to provide PHH net proceeds of $100–$110 million at closing in Q1 2026. Eligible forward mortgage customers at PHH will gain access to FOA's HomeSafe Second product. PHH intends to use proceeds to support growth, reduce debt, and explore a share repurchase program.
Read at www.housingwire.com
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