Onity Group Announces Closing of Transaction with Finance of America Reverse

Rhea-AI Summary

Onity Group (NYSE: ONIT) closed its previously announced transaction with Finance of America Reverse, effective June 30, 2026. The deal includes selling reverse mortgage servicing rights on about 20,000 Ginnie Mae HECM loans with $5.2 billion unpaid principal and a reverse mortgage loan pipeline.

Onity Mortgage will subservice the sold MSRs for FAR under a three-year agreement. Net proceeds are expected to be $70–$80 million, intended to support growth, reduce debt and for other corporate purposes. Onity has ceased originating reverse mortgages but will continue securitizations of reverse mortgage buyout loans.

Positive

• Expected net transaction proceeds of $70–$80 million
• Sale covers $5.2 billion UPB of reverse mortgage loans
• Three-year subservicing agreement with Finance of America Reverse
• Proceeds intended to support growth and reduce debt

Negative

• Company ceased originating reverse mortgage loans
• Reverse mortgage loan pipeline transferred to Finance of America Reverse

News Market Reaction – ONIT

-3.33%

-3.33% Session close to close

In the Jul 2 session, ONIT declined 3.33%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement finalizes the FAR transaction, unlocking $70–$80 million in proceeds and a three-y...

Analysis

This announcement finalizes the FAR transaction, unlocking $70–$80 million in proceeds and a three-year subservicing stream on $5.2 billion UPB. Earlier approval news drove about 8% upside; investors may now focus on growth deployment and any future shelf usage.

Key Figures

Net transaction proceeds: $70–$80 million Reverse mortgage UPB: $5.2 billion Reverse loans count: Approximately 20,000 loans +2 more

5 metrics

Net transaction proceeds $70–$80 million Expected net proceeds from sale of reverse mortgage assets

Reverse mortgage UPB $5.2 billion Unpaid principal balance of Ginnie Mae HECM loans as of May 31, 2026

Reverse loans count Approximately 20,000 loans Number of Ginnie Mae home equity conversion mortgage loans in MSR sale

Subservicing term Three-year agreement Onity to subservice reverse MSRs sold to FAR

Transaction effective date June 30, 2026 Effective date of completed transaction with FAR

Historical Context

5 past events · Latest: Jun 10 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 10	Investor conference	Neutral	+0.1%	Announcement of CFO presentation at Sidoti virtual small-cap investor conference.
Jun 02	Strategic update & buyback	Positive	+8.0%	Regulatory approval for reverse sale plus new $20M share repurchase authorization.
May 05	Quarterly earnings	Negative	-18.1%	Q1 results with adjusted pre-tax loss and reduced adjusted ROE guidance range.
Apr 30	Investor conference	Neutral	+3.8%	Management attendance at BTIG Housing and Real Estate investor conference.
Apr 23	Earnings call scheduling	Neutral	-0.8%	Scheduling of Q1 2026 results conference call and webcast details.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news events have generally produced price moves that align with the underlying news tone, with only one notably sharp negative reaction on earnings.

Key Terms

reverse mortgage servicing rights, ginnie mae, home equity conversion mortgage, subservicing agreement, +1 more

5 terms

reverse mortgage servicing rights financial

"The Company sold reverse mortgage servicing rights (“MSRs”) comprised of approximately 20,000"

Reverse mortgage servicing rights are the contractual rights to manage reverse mortgage loans on behalf of lenders or investors, including collecting fees, handling borrower accounts, and overseeing loan payoff events. Think of it like owning the right to operate a toll booth that earns fees as borrowers age in place or sell their homes; the income stream matters to investors because it provides predictable cash flow but carries risks tied to borrowers’ lifespans, home values, and interest-rate changes.

ginnie mae regulatory

"20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance"

Ginnie Mae is a U.S. government corporation that guarantees timely payment of principal and interest on mortgage-backed securities composed of federally insured or guaranteed home loans (for example, FHA, VA and USDA loans). For investors it acts like an official co-signer that reduces the chance of loss and makes these securities easier to buy and sell, which generally means lower yield but greater perceived safety and liquidity.

home equity conversion mortgage financial

"Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion"

A home equity conversion mortgage is a government-insured reverse mortgage that lets homeowners aged 62 or older turn part of their home’s value into cash while still living in the house. Think of it as tapping a built-up savings account tied to your home: the loan doesn’t require monthly payments and is typically repaid when the home is sold or the borrower moves out or dies. Investors watch these loans because they affect the flow of funds into mortgage-backed securities, influence housing market activity among older homeowners, and carry repayment and interest-rate risks that can change returns on related financial products.

subservicing agreement financial

"will subservice the reverse MSRs sold to FAR under a three-year subservicing agreement"

A subservicing agreement is a contract where the owner of loans hires another firm to handle day‑to‑day tasks like collecting payments, sending statements, managing customer calls and default work, while the owner retains legal ownership and earns the loan income. It matters to investors because the subservicer’s performance affects cash flow reliability, borrower behavior, compliance risk and fees—similar to hiring a property manager to run rental units: good management preserves value, poor management creates losses.

securitizations financial

"Onity Mortgage will continue securitizations of reverse mortgage buyout loans."

Securitizations are transactions that bundle similar financial assets—like mortgages, car loans, or credit-card receivables—and convert them into tradable securities that investors can buy. Think of it as pooling many small loans into one package and selling slices of that package; this changes who bears the credit risk, creates different return and risk levels, and can improve liquidity. Investors care because securitizations determine potential income, the level of default risk tied to the underlying loans, and how easily those investments can be bought or sold.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Sells reverse mortgage assets and enters into subservicing agreement
Net proceeds from the transaction of $70 to $80 million

WEST PALM BEACH, Fla., July 01, 2026 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today 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.

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.”

About Onity Group

Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company delivering mortgage servicing and originations solutions through Onity Mortgage Corporation. As one of the largest mortgage servicers in the country, we help consumers and business clients achieve their homeownership and financial goals with a wide range of servicing and lending programs powered by a technology-enabled, customer-centric platform. Headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, we have been serving our customers since 1988. For additional information, please visit onitygroup.com or onitymortgage.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding the future of Onity’s relationship with FAR and participation in the reverse market, and the Company’s ability to increase focus on growth and earnings opportunities.

Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the financial impact of any post-closing adjustments or indemnification claims, changes in FAR’s business or financial condition, changes in market conditions, the industry in which we operate, and our business, the actions of governmental entities and regulators, developments in our litigation matters, and other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2025 and any current report or quarterly report filed with the SEC since such date. Anyone wishing to understand Onity’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.

For Further Information Contact:

Investors:
Valerie Haertel, VP, Investor Relations
(561) 570-2969
shareholderrelations@onitygroup.com

Media:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com

FAQ

What transaction did Onity Group (NYSE: ONIT) close with Finance of America Reverse on July 1, 2026?

Onity Group closed a transaction selling reverse mortgage servicing rights and a reverse mortgage loan pipeline to Finance of America Reverse. According to Onity, the MSRs cover about 20,000 Ginnie Mae HECM loans with an unpaid principal balance of $5.2 billion as of May 31, 2026.

How much cash will Onity Group (ONIT) receive from the Finance of America Reverse deal?

Onity Group expects net proceeds of $70 to $80 million from the transaction with Finance of America Reverse. According to Onity, these proceeds will be used to support growth initiatives, reduce debt obligations and for other general corporate purposes following the June 30, 2026 closing.

What happens to Onity Group’s reverse mortgage servicing after the sale to Finance of America Reverse?

Onity Mortgage will continue servicing through a subservicing arrangement rather than direct ownership of reverse MSRs. According to Onity, it entered a three-year subservicing agreement to handle the reverse mortgage servicing rights sold to Finance of America Reverse, maintaining operational involvement in these loans.

Did Onity Group (ONIT) stop originating reverse mortgages after the June 30, 2026 transaction?

Yes, Onity Group has ceased originating reverse mortgages in connection with the transaction. According to Onity, Finance of America Reverse acquired Onity Mortgage’s pipeline of reverse mortgage loans as of closing, while Onity Mortgage will continue securitizations of reverse mortgage buyout loans going forward.

How many loans and what unpaid principal balance were included in Onity Group’s MSR sale to Finance of America Reverse?

The sale included servicing rights on approximately 20,000 Ginnie Mae home equity conversion mortgage loans. According to Onity, these loans had an unpaid principal balance of $5.2 billion as of May 31, 2026, forming the core portfolio transferred to Finance of America Reverse.

How does the Finance of America Reverse transaction affect Onity Group’s future growth and earnings focus?

Onity Group views the deal as repositioning its role in the reverse mortgage market and simplifying its business. According to Onity, the transaction enables increased focus on more substantial growth and earnings opportunities while leveraging a significant new subservicing relationship with Finance of America Reverse.