Sells reverse mortgage assets and enters into subservicing agreement
Net proceeds from the transaction of $70 to $80 million
Onity Group Inc., announced that its subsidiary, Onity Mortgage Corporation (“Onity Mortgage”), has completed the previously announced transaction with Finance of America Reverse LLC (“FAR”), effective June 30, 2026.
The Company sold reverse mortgage servicing rights (“MSRs”) comprised of approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion as of May 31, 2026. Onity Mortgage will subservice the reverse MSRs sold to FAR under a three-year subservicing agreement.
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Additionally, FAR acquired Onity Mortgage’s pipeline of reverse mortgage loans as of the closing date and the Company has ceased originating reverse mortgages. Onity Mortgage will continue securitizations of reverse mortgage buyout loans.
Net proceeds from the transaction are expected to be $70 to $80 million. The Company intends to use the net proceeds to support growth, reduce debt and for other corporate purposes.
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.”
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