FOA maps next steps after PHH reverse asset acquisition

"Onity said it wants to focus on other business channels, including conventional forward mortgages, non-QM loans, commercial loans and its servicing portfolios rather than reverse mortgage originations. FOA is doing quite the opposite it wants to grow in the reverse mortgage space and sees value in adding PHH's portfolio and team. As a result, FOA will take over PHH's pipeline of reverse mortgages and said it will hire some of PHH's employees working in that line of business."

"The exact number of impacted employees is not available yet, a spokesperson for Onity Group told HousingWires Reverse Mortgage Daily (RMD). CEO Graham Fleming said in an interview with RMD that Finance of America is working on a plan to integrate those employees, and that its current plan is to onboard the employees into our current technology stack and current workflow processes."

"Onity's spokesperson said that the decision on their end stemmed in part from the company's third-quarter 2025 earnings performance. Our origination platform is growing faster than the total originations market, and our recapture platform is delivering top-tier performance, the spokesperson said. Historically, reverse has been a profitable niche business that served as an effective hedge to our forward MSRs, which was critical as we were building our forward originations and recapture capabilities."

Onity will refocus on conventional forward mortgages, non-QM loans, commercial loans and servicing portfolios rather than originating reverse mortgages. Finance of America (FOA) will grow in the reverse mortgage space and will take over PHH's pipeline of reverse mortgages while hiring some employees from PHH's reverse line of business. The exact number of impacted employees is not available yet, and FOA plans to integrate and onboard those employees into its current technology stack and workflow processes. FOA undertook strategic initiatives over recent months to deliver the balance sheet and then sought a partnership to increase portfolio size with PHH. Onity's decision reflected third-quarter 2025 earnings, faster origination growth and strong recapture performance, and Onity plans to reposition reverse participation toward subservicing and asset management.

Read at www.housingwire.com