Onity Group closes reverse mortgage asset sale to Finance of America

Onity Group Inc. (NYSE: ONIT) announced the completion of a transaction with Finance of America Reverse LLC, effective June 30, 2026, in which it sold reverse mortgage servicing rights to the company.

According to a press release, Onity's subsidiary, Onity Mortgage Corporation, sold reverse mortgage servicing rights comprising approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.2 billion as of May 31, 2026.

As part of the deal, Onity Mortgage will subservice the reverse mortgage servicing rights sold to Finance of America Reverse under a three-year subservicing agreement. Finance of America Reverse also acquired Onity Mortgage's pipeline of reverse mortgage loans as of the closing date.

Onity has ceased originating reverse mortgages but said it will continue securitizations of reverse mortgage buyout loans.

Net proceeds from the transaction are expected to be between $70 million and $80 million. The company said it intends to use the proceeds to support growth, reduce debt, and for other corporate purposes.

Glen A. Messina, Onity Group Chair, President and CEO, said the transaction "repositions our role in the reverse mortgage market" and "simplifies our business."

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