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Get filing alertsOnity exits reverse mortgage business, sells $5.2B servicing portfolio for $70-80M
Filed July 1, 2026 · Period ending June 30, 2026 · ~1 min read
Key Changes
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Sold entire reverse mortgage servicing portfolio to Finance of America Reverse: ~20,000 Ginnie Mae HECM loans with $5.2B unpaid principal balance of $5.2 billion as of May 31, 2026, plus existing origination pipeline
Item 8.01 verify on EDGAR → -
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Ceased all reverse mortgage originations, marking complete exit from the product line; will continue securitizations of reverse mortgage buyout loans only
Exhibit 99.1 view on EDGAR → -
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Expected net proceeds of $70-80M to be used for growth initiatives, debt reduction, and general corporate purposes
Exhibit 99.1 view on EDGAR → -
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Entered three-year subservicing agreement with buyer, maintaining operational role and generating fee income while transferring ownership of servicing rights
Item 8.01 verify on EDGAR →
Summary
Onity Group completed a strategic exit from the reverse mortgage business on June 30, 2026, selling its entire servicing portfolio and origination platform to Finance of America Reverse. The transaction encompassed approximately 20,000 Ginnie Mae home equity conversion mortgage loans with $5.2 billion in unpaid principal balance, plus the company's reverse mortgage pipeline. Onity has ceased all new reverse mortgage originations, though it will continue securitizing reverse mortgage buyout loans.
The sale is expected to generate $70-80 million in net proceeds, which management plans to deploy toward growth initiatives, debt reduction, and general corporate purposes. Under a three-year subservicing agreement, Onity will continue performing operational servicing functions for the sold portfolio, providing transition continuity and ongoing fee income while the buyer assumes ownership of the servicing rights. This represents a significant business model shift for Onity, concentrating resources away from reverse mortgages while maintaining near-term operational involvement and strengthening the balance sheet with the transaction proceeds.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
In addition, the parties entered into a three-year subservicing arrangement.
As part of the transaction, Onity and Finance of America Reverse entered into a three-year subservicing agreement. This suggests Onity will continue to perform operational servicing functions for the sold portfolio under contract to the buyer, providing transition continuity and likely generating fee income during the three-year period.
Event · Exhibit 99.1
Onity sold $5.2B reverse mortgage servicing rights to Finance of America Reverse, exited originations, retained subservicing for 3 years, expects $70-80M net proceeds.
Added in current filing · view on EDGAR →
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.
Onity has exited the reverse mortgage origination business entirely, selling its existing pipeline to FAR. The company will continue securitizations of reverse mortgage buyout loans but will no longer originate new reverse mortgages, representing a strategic shift away from this product line.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 6, 2026 · How we verify