STOCK TITAN
  1. Home
  2. Sec-filings
  3. FOA
  4. [8-K] Finance of America Companies Inc. Reports Material Event

Finance of America (NYSE: FOA) to acquire $5.1B HECM MSRs and staff

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Finance of America Companies Inc., through its indirect subsidiary Finance of America Reverse LLC (FAR), agreed to amend its deal with Onity Mortgage Corporation to buy mortgage servicing rights on about 20,000 home equity conversion mortgage (HECM) loans with an unpaid principal balance of $5.1 billion as of March 31, 2026.

FAR will also acquire Onity’s reverse mortgage loan pipeline and expects to assume certain U.S.-based reverse originations employees in May and July 2026. The price at closing will equal the estimated book value of the purchased assets, including the HECM MSRs, with adjustments, holdbacks and post-closing price changes.

Onity will subservice the transferred HECM MSRs for three years under a subservicing agreement that renews automatically for one year unless FAR gives 180 days’ notice. Onity plans to discontinue its reverse originations business at closing, and the transaction depends on customary conditions, including Government National Mortgage Association consent, with either party able to terminate if not completed by August 1, 2026.

Positive

  • None.

Negative

  • None.

Insights

FOA’s reverse unit is expanding HECM servicing, pending approvals, while outsourcing day-to-day servicing to the seller.

Finance of America Reverse LLC is set to acquire mortgage servicing rights on roughly 20,000 HECM loans with an unpaid principal balance of $5.1 billion. This significantly enlarges its reverse mortgage servicing footprint and brings over Onity’s reverse mortgage pipeline and selected originations staff.

The consideration will equal the estimated book value of the purchased assets at closing, with holdbacks and post-closing adjustments, which may temper immediate financial impact. Onity will continue as subservicer for three years, renewable, keeping operational servicing with a familiar platform while FOA holds the MSRs.

The deal depends on customary closing conditions, notably consent from the Government National Mortgage Association to transfer the HECM MSRs, and can be terminated if not closed by August 1, 2026. Execution will hinge on regulatory approvals and a smooth transfer of employees and the loan pipeline.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
HECM unpaid principal balance $5.1 billion Unpaid principal balance of HECM loans as of March 31, 2026
HECM loans count approximately 20,000 loans Number of HECM loans whose MSRs are being purchased
Subservicing initial term three years Term of Onity’s subservicing agreement for transferred HECM MSRs
Non-renewal notice period 180 days Notice period for FAR to prevent automatic one-year renewal
Outside termination date August 1, 2026 Either party may terminate if closing has not occurred by this date
Employee transfer timing May 2026 and July 2026 Expected months when certain reverse originations employees move to FAR
mortgage servicing rights financial
"OMC has agreed to sell and FAR has agreed to purchase mortgage servicing rights (“MSRs”)"
Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.
home equity conversion mortgage financial
"approximately 20,000 home equity conversion mortgage (“HECM”) loans with an unpaid principal balance"
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.
HECM-backed securities financial
"pooled into securities issued pursuant to the Government National Mortgage Association’s HECM-backed securities program"
subservicing agreement financial
"OMC will become the subservicer for the HECM 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.
customary closing conditions regulatory
"The transaction is subject to customary closing conditions, including, among others, the consent of the Government National Mortgage Association"
"Customary closing conditions" are standard rules or checks that must be met before a business deal can be finalized, like making sure all paperwork is in order or that certain approvals are obtained. They matter because they help protect both parties, ensuring everything is in place and reducing the risk of surprises or problems after the deal is closed.
post-closing price adjustments financial
"with certain mutually agreed upon adjustments, subject to certain customary holdbacks and post-closing price adjustments"

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

What transaction did Finance of America (FOA) announce in this 8-K?

Finance of America, through Finance of America Reverse LLC, agreed to buy mortgage servicing rights on about 20,000 home equity conversion mortgage loans. These loans have an unpaid principal balance of $5.1 billion, and FOA will also acquire Onity’s reverse mortgage loan pipeline.

What assets are being acquired by Finance of America Reverse LLC from Onity Mortgage?

Finance of America Reverse LLC will acquire mortgage servicing rights on roughly 20,000 HECM loans with an unpaid principal balance of $5.1 billion, plus Onity’s pipeline of reverse mortgage loans as of closing, alongside the expected transfer of certain U.S.-based reverse originations employees.

How will the purchase price for the HECM mortgage servicing rights be determined?

The consideration at closing will equal the estimated book value of the purchased assets, including the HECM mortgage servicing rights. This amount will be adjusted by mutually agreed mechanisms, including customary holdbacks and post-closing price adjustments between Finance of America Reverse LLC and Onity Mortgage.

What subservicing role will Onity Mortgage have after transferring HECM MSRs to FOA?

Onity Mortgage will act as subservicer for the transferred HECM mortgage servicing rights under a three-year subservicing agreement. The term renews automatically for one year unless FOA gives 180 days’ non-renewal notice, with further renewals requiring mutual agreement.

What happens to Onity Mortgage’s reverse originations business after this transaction?

Onity Mortgage has agreed to discontinue its reverse originations business upon closing. It will only continue activities related to recapturing existing HECM borrowers for any HECM mortgage servicing rights that are not transferred to Finance of America Reverse LLC.

What key conditions and termination rights apply to the FOA–Onity HECM MSR transaction?

The deal is subject to customary closing conditions, including consent from the Government National Mortgage Association to transfer the HECM MSRs without adverse changes. Either party may terminate if the transaction has not been completed by August 1, 2026.

0001828937false8-K00018289372026-04-302026-04-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2026

FINANCE OF AMERICA COMPANIES INC.
(Exact name of registrant as specified in its charter)
Delaware
001-40308
85-3474065
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
5830 Granite Parkway, Suite 400
Plano, Texas 75024
(Address of principal executive offices, including Zip Code)
(877) 202-2666
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareFOANew York Stock Exchange
NYSE Texas, Inc.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 1.01 Entry into a Material Definitive Agreement.

On April 30, 2026, Finance of America Reverse LLC (“FAR”), an indirect subsidiary of Finance of America Companies Inc., and Onity Mortgage Corporation (formerly known as PHH Mortgage Corporation) (“OMC”) entered into an amendment (the “Amendment”) to the parties’ agreements for the sale of OMC’s reverse mortgage servicing portfolio and certain reverse originations assets. Pursuant to the Amendment, which modifies the terms of the Asset Purchase Agreement and the Reverse Mortgage Servicing Rights Purchase and Sale Agreement, each between FAR and OMC and dated as of November 17, 2025, OMC has agreed to sell and FAR has agreed to purchase mortgage servicing rights (“MSRs”) with respect to approximately 20,000 home equity conversion mortgage (“HECM”) loans with an unpaid principal balance of $5.1 billion as of March 31, 2026. Participation interests in such HECM loans have been pooled into securities issued pursuant to the Government National Mortgage Association’s HECM-backed securities program. FAR will also acquire OMC’s pipeline of reverse mortgage loans as of the transaction closing date. In addition, FAR expects to assume certain of OMC’s US-based reverse originations employees in May 2026 and additional employees in July 2026. In exchange therefor, among other things, FAR will pay to OMC an amount at the closing equal to the estimated book value of the purchased assets (including the HECM MSRs) with certain mutually agreed upon adjustments, subject to certain customary holdbacks and post-closing price adjustments.

OMC will become the subservicer for the HECM MSRs sold to FAR under a three-year subservicing agreement subject to automatic one-year renewal unless FAR provides notice of non-renewal 180 days prior to the expiration of the original term, and subject thereafter to renewal upon mutual agreement of the parties. OMC has agreed to discontinue its reverse originations business upon closing with the exception of activities relating to the recapture of existing HECM borrowers for any HECM MSRs not transferred to FAR.

The transaction is subject to customary closing conditions, including, among others, the consent of the Government National Mortgage Association to the transfer of the HECM MSRs from OMC to FAR, without adverse modifications to the rights or obligations of the servicer with respect thereto. The transaction is subject to certain termination rights, including the right of either party to terminate if the transaction is not consummated by August 1, 2026.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Finance of America Companies Inc.
Date:May 5, 2026By:
/s/ Matthew A. Engel
Name: Matthew A. Engel
     
Title: Chief Financial Officer



Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Other Documents