Finance of America is sharpening focus on specialty finance and services businesses and planning to stop issuing forward mortgages

PLANO, Texas–(BUSINESS WIRE). wholesale channels by the end of the year.

The Finance of America strategy

FOA was created to provide consumers with opportunities to achieve greater financial freedom by leveraging the equity in their home. FOA has built many businesses that have become leaders in their fields including reverse, commercial and lender services. Together with Portfolio Management and Home Improvement, they form FOA’s Specialty Finance and Services (SF&S) solution platform.

Graham Fleming, interim executive director of FOA, said: “The discontinuation of the Forward Mortgage Origination segment will allow FOA to optimize its resources and prioritize deals that have a clear market opportunity and greater growth potential. In addition, the move will accelerate the company’s ability to partner with major mortgage lenders and other financial services firms to offer FOA’s SF&S solutions on their platforms. Our decision has been carefully considered and we recognize the impact this action will have on many of our employees and their families. We provide support and resources to help our departing employees find employment opportunities and are actively working to facilitate the transition of many of these employees to positions with other mortgage lenders. The employees affected have long been valued members of our team and we recognize the many contributions they have made to the company.”

Referring to the strength of FOA’s SF&S business, Fleming noted that the Reverse segment recently debuted its collaboration with Morningstar to educate 150,000 participating financial advisors about reverse mortgages and other home ownership options available to customers 55 and older . FOA has the leading reverse mortgage platform in an industry with strong structural tailwinds and has been the backbone of the FOA model since the company’s inception.

FOA’s commercial business, which provides fix-and-flip loans, rental portfolio loans and other financing for residential investment property, also has a dominant market share in its industry. FOA’s home improvement business continues to grow and serve as an efficient channel for customer acquisition. FOA’s portfolio management and capital markets capabilities support innovation of proprietary products and connect FOA’s originating loans to an expanding universe of large institutional investors. Additionally, the credit services business continues to rapidly increase the number of third-party lenders it serves by introducing new technology-enabled products, including augmented reality solutions for virtual assessments and a new tax solutions product to help homeowners lower their property tax bills.

About Finance of America Companies

Finance of America (NYSE: FOA) is a specialty consumer lending financing platform that provides pathways to greater financial freedom through home equity. Through FOA’s subsidiaries, clients have access to a wide range of flexible end-to-end home equity financing and home equity financing solutions, including home improvement loans and reverse mortgages and loans to residential real estate investors, distributed across the retail and third-party network. and digital channels. In addition, FOA’s businesses offer ancillary lending services to enhance client experiences, as well as capital markets and portfolio management capabilities to streamline distribution to investors. FOA is headquartered in Plano, TX. For more information, visit www.financeofamerica.com.

source

Leave a Reply

Your email address will not be published. Required fields are marked *