Finance of America Reverse LLC, a subsidiary of Finance of America Companies Inc., announced on November 18, 2025 that it will acquire the home equity conversion mortgage (HECM) servicing portfolio and related reverse mortgage assets from PHH Mortgage, a unit of Onity Group Inc. The all‑cash transaction is expected to generate net proceeds of $100 million to $110 million for PHH and will be funded primarily through warehouse and asset‑level financing.
The deal expands Finance of America’s servicing footprint by adding a substantial volume of HECM servicing contracts and a pipeline of reverse mortgage loans. Management said the transaction will be immediately accretive to earnings, adjusted earnings per share, and cash flow, driven by higher‑margin servicing and the ability to leverage existing infrastructure.
A three‑year sub‑servicing agreement will allow PHH to continue servicing the loans during the transition, ensuring operational continuity and protecting borrower experience. The agreement also provides Finance of America with access to PHH’s experienced origination team, though the exact number of employees moving to Finance of America has not been disclosed.
Strategically, the acquisition deepens Finance of America’s relationship with Onity Group and accelerates the rollout of its proprietary second‑lien reverse mortgage product, HomeSafe® Second. By making HomeSafe Second available to PHH’s forward‑mortgage customers, Finance of America expects to broaden its reach to thousands of older homeowners and strengthen its market leadership in the reverse‑mortgage space.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. The deal reflects Finance of America’s broader strategy to grow its reverse‑mortgage platform and capitalize on demographic trends that increase demand for home‑equity solutions among homeowners aged 55 and older.
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