Onity Group Inc. and Finance of America Reverse LLC (FAR) have completed the previously announced agreement and the Onity Group Finance of America Reverse Transaction is now officially closed. The Onity Group Finance of America Reverse Transaction was effective June 30, 2026. Moreover, the Onity Group Finance of America Reverse Transaction is another strategic step in the company’s ongoing efforts to streamline its operations and bolster its long-term business strategy.
As part of the executed agreement, Onity Mortgage Corporation, a subsidiary of Onity Group, sold reverse mortgage servicing rights (MSRs) to Finance of America Reverse. The portfolio includes about 20,000 Ginnie Mae home equity conversion mortgage loans. In addition, as of May 31, 2026, the unpaid principal balance of such loans was approximately $5.2 billion.
The servicing rights have changed hands, but Onity Mortgage will stay on to service the portfolio. The company signed a three-year subservicing contract with FAR. Finance of America Reverse has Onity Mortgage continue to service the transferred reverse mortgage assets on its behalf.
The completed transaction also includes the transfer of Onity Mortgage’s reverse mortgage loan pipeline. FAR thus purchased the reverse mortgage loans that remained in the pipeline of the company on the closing date of the transaction.
Transaction Strategically Focuses Business
The closing of the agreement marks the official end of Onity Group’s reverse mortgage origination business. The company will continue to service securitizations associated with reverse mortgage buyout loans. Consequently, Onity has been active in certain segments of the reverse mortgage servicing market.
The company expects net proceeds from the transaction to be between $70 million and $80 million. Onity also plans to use the proceeds to accelerate future business growth, reduce outstanding debt and support other corporate initiatives.
The acquisition is part of Onity’s broader strategy to streamline its business and focus on areas that have more attractive long-term growth prospects. The partnership with Finance of America Reverse also establishes a significant servicing relationship that both companies expect to continue for the next several years.
Glen A. Messina, Onity Group Chair, President and CEO, said “We are pleased to complete this transaction with FAR which repositions our role in the reverse mortgage market. This strategic transaction establishes a significant subservicing relationship with FAR, simplifies our business, and enables increased focus on more substantial growth and earnings opportunities. We look forward to our continued partnership with FAR and to future opportunities.”
Onity Positions Business for Future Growth
The completion of this transaction allows Onity Group to sharpen its operational priorities while maintaining an important presence in mortgage servicing. Additionally, the three-year subservicing agreement ensures continued collaboration with Finance of America Reverse.
The company believes this strategic move creates greater financial flexibility. Furthermore, the expected proceeds will strengthen its balance sheet and provide resources for future investments.
As the mortgage servicing industry continues to evolve, Onity remains focused on operational efficiency, disciplined capital management, and expanding opportunities that deliver sustainable earnings. The partnership with Finance of America Reverse supports that objective while allowing both organizations to leverage their respective strengths in the reverse mortgage market.
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News Source: GlobeNewswire.com
