Finance of America Companies Inc. 8-K

What Happened
Finance of America Companies Inc. (through indirect subsidiary Finance of America Reverse LLC, “FAR”) announced an amendment dated April 30, 2026 to its November 17, 2025 agreements with Onity Mortgage Corporation (formerly PHH Mortgage). Under the Amendment, FAR will purchase mortgage servicing rights (MSRs) for approximately 20,000 home equity conversion mortgage (HECM) loans with an unpaid principal balance of $5.1 billion as of March 31, 2026, and will acquire Onity’s reverse mortgage pipeline as of the closing date. Onity will become the subservicer for those HECM MSRs under a three-year subservicing agreement (auto-renews one year unless 180-day nonrenewal notice), and Onity agreed to discontinue its reverse originations business upon closing except for limited recapture activities.

Key Details

• MSRs for ~20,000 HECM loans with aggregate UPB of $5.1 billion (as of 3/31/2026).
• Purchase price at closing equals the estimated book value of the purchased assets (including the HECM MSRs), with customary holdbacks and post-closing adjustments.
• FAR expects to assume certain U.S.-based reverse originations employees in May 2026 and additional employees in July 2026.
• Transaction subject to customary closing conditions, including GNMA consent to the MSR transfer; either party may terminate if not consummated by August 1, 2026.

Why It Matters
This is a meaningful acquisition of scale in the reverse mortgage servicing business: adding MSRs on ~20,000 HECM loans (UPB $5.1B) and the originations pipeline can increase Finance of America’s servicing revenue and forward origination capacity. The subservicing deal preserves operational continuity but means FAR initially relies on Onity to service loans. The purchase price tied to book value with holdbacks and post-closing adjustments reduces immediate price uncertainty but leaves room for future adjustments. Completion depends on GNMA consent and other closing conditions, with an August 1, 2026 outside date noted in the filing.