Onity Group sells $5.2B reverse mortgage assets to Finance of America
Onity Group Inc. completed the sale of $5.2 billion in reverse mortgage servicing rights to Finance of America Reverse LLC, generating net proceeds of $70 to $80 million. The company ceased reverse mortgage originations but will subservice the loans for three years while continuing securitizations.
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Onity Group Inc. (NYSE: ONIT) announced that its subsidiary, Onity Mortgage Corporation, has completed the sale of reverse mortgage servicing rights (MSRs) to Finance of America Reverse LLC (FAR) for net proceeds of $70 to $80 million. The transaction, effective June 30, 2026, included approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion as of May 31, 2026. Following the sale, Onity Group has ceased originating reverse mortgages and will focus on other growth opportunities.
Transaction Details
As part of the agreement, FAR acquired Onity Mortgage’s pipeline of reverse mortgage loans as of the closing date. To ensure operational continuity, Onity Mortgage will subservice the reverse MSRs sold to FAR under a three-year subservicing agreement. Onity Mortgage will continue securitizations of reverse mortgage buyout loans. The company intends to use the net proceeds to support growth, reduce debt, and for other corporate purposes.
| Transaction Component | Details |
|---|---|
| Seller | Onity Mortgage Corporation |
| Buyer | Finance of America Reverse LLC |
| Asset Type | Reverse Mortgage Servicing Rights (MSRs) |
| Loan Count | Approximately 20,000 |
| Unpaid Principal Balance | $5.2 billion |
| Loan Type | Ginnie Mae Home Equity Conversion Mortgage |
| Subservicing Agreement | 3 years |
| Net Proceeds | $70 to $80 million |
Strategic Impact
Glen A. Messina, Onity Group Chair, President and CEO, stated that the transaction repositions the company's role in the reverse mortgage market. He emphasized that the strategic move establishes a significant subservicing relationship with FAR, simplifies the business, and enables increased focus on more substantial growth and earnings opportunities. Onity Group is headquartered in West Palm Beach, Florida, and operates as a non-bank financial services company delivering mortgage servicing and originations solutions.
What specific growth opportunities will Onity Group target with the $70 to $80 million in net proceeds?
How will Onity Group's earnings be impacted once the three-year subservicing agreement with FAR expires?
Will the cessation of reverse mortgage origination lead to workforce reductions or restructuring within Onity Mortgage?
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