Finance of America (FOA) to Focus on Finance and Specialty Services Business and Cease Term Mortgage Originations
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Finance of America Companies Inc. (NYSE: AOF) today announced its decision to cease operations of its term mortgage origination segment across retail and wholesale channels by the end of the year.
The Finance of America Strategy
FOA was created to provide consumers with ways to achieve greater financial freedom through the use of the equity in their home. FOA has built many businesses that have become leaders in their fields, including reverse, trading, and lending services. Together with the portfolio management and home improvement business, they form FOA’s financing solutions and specialist services (SF&S) platform.
FOA’s Acting Managing Director, Graham Fleming, said: “Discontinuing the term mortgage segment will allow FOA to optimize its resources and prioritize businesses that have a distinct market opportunity and a plus. great potential for growth. Additionally, this move will accelerate the company’s ability to partner with major mortgage lenders and other financial services companies to offer FOA’s SF&S solutions on their platforms. Our decision was made after careful consideration and we understand the impact this action will have on many of our employees and their families. We provide support and resources to help our departing employees in their search for employment opportunities and we are actively working to facilitate the transition of many of these employees to roles with other mortgage lenders. The affected employees have long been valued members of our team and we recognize the many contributions they have made to the company.
Speaking about the strength of FOA’s SF&S business, Fleming noted that the reverse segment recently launched its collaboration with Morningstar educate 150,000 participating financial advisors on reverse mortgages and other home equity options available to clients age 55 or older. FOA has the leading reverse mortgage platform in an industry with strong structural tailwinds and has been the backbone of FOA’s model since the company’s inception.
FOA’s business activity, which provides fixed and reversible loans, rental portfolio loans and other financing for residential investment properties, also holds a dominant market share in its vertical. FOA’s home improvement business continues to grow and is an effective customer acquisition channel. FOA’s portfolio management and capital markets capabilities support proprietary product innovation and connect FOA-issued loans to a growing universe of leading institutional investors. Additionally, the Lender Services business continues to rapidly increase the number of third-party lenders it serves by introducing new technology products, including augmented reality solutions for virtual appraisals and a new tax solutions product to help homeowners to reduce their property tax bills.
About Finance of America Companies
Finance of America (NYSE: AOF) is a finance-focused consumer lending platform that provides pathways to achieve greater financial freedom through home equity. Through FOA’s affiliates, customers have access to a diverse range of flexible and comprehensive home financing and home equity solutions, including home improvement loans and reverse mortgages, as well as lending to residential real estate investors across retail, third-party, and digital channels. In addition, FOA firms offer complementary lending services to enhance the client experience, as well as capital markets and portfolio management capabilities to optimize distribution to investors. FOA is headquartered in Plano, TX. For more information, please visit www.financeofamerica.com.
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Source: Finance of America Companies Inc.