FOA reported an $80 million profit in the second quarter flat compared to the first quarter but a sharp turnaround from the $5 million loss in the same period last year. CEO Graham Fleming attributed the performance to consistent execution, rising profitability, and the growing relevance of home equity solutions for retirement. FOA's origination volume topped the high end of its quarterly guidance, reaching $602 million from April through June a 7% increase from the prior quarter and 35% higher year over year.
The entire structure of the arrangement is designed to put Unison in the same position, and to have the same right to payment, as an unadorned nonrecourse obligation to pay Unison 70% of the home's equity, less $194,250.
A reverse mortgage, or lifetime mortgage, allows homeowners aged 55 and over to borrow against their home's equity, requiring no monthly repayments.
We're the first loan originators in the retail space for them, and we're hoping to make an impact in it. They've been very supportive, and I'm honored to be in this next chapter with them.
âMost of what weâre focused on now is riding the wave dailyâ¦weâre focused on execution, getting our sales force in front of customers.â â Jesse Allen, emphasizing the importance of execution and daily operations.