Onity mentioned it needs to deal with different enterprise channels, together with standard ahead mortgages, non-QM loans, industrial loans and its servicing portfolios relatively than reverse mortgage originations.
FOA is doing fairly the alternative — it needs to develop within the reverse mortgage area and sees worth in including PHH’s portfolio and crew.
Because of this, FOA will take over PHH’s pipeline of reverse mortgages and mentioned it’s going to rent a few of PHH’s staff working in that line of enterprise. The precise variety of impacted staff just isn’t accessible but, a spokesperson for Onity Group instructed HousingWire‘s Reverse Mortgage Each day (RMD).
CEO Graham Fleming mentioned in an interview with RMD that Finance of America is “engaged on a plan to combine these staff,” and that its “present plan is to onboard the staff into our present technology stack and present workflow processes.”
“During the last in all probability 4 to 6 months, we’ve undertaken a collection of strategic initiatives that contain delivering the stability sheet,” Fleming mentioned. “The following strategic step for us was to look out there, see how we might improve the dimensions of our portfolio and type a partnership, which is what we did with PHH.”
Onity’s spokesperson mentioned that the choice on their finish stemmed partly from the corporate’s third-quarter 2025 earnings efficiency.
“Our origination platform is rising quicker than the entire originations market, and our recapture platform is delivering top-tier efficiency,” the spokesperson mentioned. Traditionally, reverse has been a worthwhile area of interest enterprise that served as an efficient hedge to our ahead MSRs, which was important as we have been constructing our ahead originations and recapture capabilities.
“This transaction allows us to pay attention our sources on maximizing the expansion and earnings potential of ahead originations. … As such, our need [is] to reposition our participation in reverse from an end-to-end supplier to an industry-leading reverse subservicer and asset supervisor.”
Till the transaction closes, which is anticipated to occur in Q1 2026, Onity is working below “enterprise as common” and can proceed to originate reverse mortgages till the deal reaches the end line.
Fleming mentioned there will probably be no disruption for servicing, and that PHH’s present debtors will proceed to work together with them by way of the PHH expertise platform.
He described the transaction as a “threefold” alternative, saying that the corporate is diversifying its subservicing, rising the dimensions of its portfolio and onboarding new expertise.
“We additionally look ahead to PHH providing our HomeSafe Second (product), which we expect will acquire a number of traction headed into 2026,” Fleming mentioned.
Fleming shared an replace on FOA’s profitability standing, which will probably be boosted by the deal. Whereas FOA recorded a $29 million loss in Q3 2025, adjusted web revenue was $33 million throughout the identical interval, a 136% enchancment from the second quarter and up 120% 12 months over 12 months.
An FOA spokesperson confirmed that for the primary 9 months of 2025, it posted $131 million in web revenue and $60 million in adjusted web revenue — a fivefold improve from final 12 months.
