In a move poised to reshape the reverse mortgage landscape heading into 2026, Finance of America Reverse (FAR) announced that it has reached an agreement to acquire PHH Mortgage Corporation’s Home Equity Conversion Mortgage (HECM) servicing portfolio along with other select reverse mortgage assets. PHH is a subsidiary of Onity Group.
The all-cash deal marks one of the most significant portfolio transfers the industry has seen in recent years, and it signals FAR’s intent to further solidify its standing as the leading player in home-equity-based retirement lending.
What the Acquisition Includes
According to the companies, the transaction will bring FAR control of PHH’s HECM servicing portfolio and its pipeline of active reverse mortgage loans. FAR will also welcome select members of PHH’s reverse origination team onto its platform.
In a notable twist, FAR and PHH will enter into a subservicing agreement, enabling PHH to maintain operational involvement while diversifying FAR’s servicing footprint. Executives say this structure allows continuity for borrowers while giving FAR greater long-term servicing scale.
A Long-Term Strategic Partnership with Onity
While the servicing assets are the headline, FAR leaders emphasized that the partnership with Onity may ultimately be the most transformational element of the deal.
The collaboration sets the stage for PHH’s large forward-mortgage servicing customer base to gain access to FAR’s proprietary HomeSafe® Second product — the company’s second-lien reverse mortgage designed for homeowners 55 and older. PHH services tens of thousands of borrowers who could now represent a new, turnkey distribution channel.
“This announcement represents a major step forward in our growth strategy,” said Graham Fleming, CEO of Finance of America. Fleming noted that expanding access to HomeSafe Second through PHH could dramatically widen FAR’s origination reach and help more older homeowners leverage home equity as part of retirement planning.
Financial Impact and Timeline
FAR expects the acquisition to be immediately accretive to earnings, Adjusted EPS and cash flow. The transaction will be financed through a mix of warehouse and asset-level funding along with available liquidity at closing.
Boards at both FOA and Onity have approved the transaction, which remains subject to customary regulatory review. The companies anticipate closing in the first quarter of 2026.
A Play for Scale in a Consolidating Market
The reverse mortgage industry has seen continued consolidation as lenders seek scale, servicing efficiency and new distribution channels. FAR’s acquisition of AAG’s assets in 2023 significantly expanded its market share, and this latest move underscores the company’s appetite for continued growth.
By adding PHH’s servicing portfolio and gaining access to its forward customers, FAR is positioning itself not just as the largest reverse originator—but as the industry’s most diversified platform for home-equity-based retirement solutions.
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