PLANO, Texas–(BUSINESS WIRE)–Finance of America Companies Inc. (NYSE: FOA) (the “Company” or “FOA”), a leading platform for specialized financing solutions, today announced its decision to discontinue operations of its mortgage termination segment in both the retail and wholesale channels in the end of the year.
The Finance of America strategy
FOA was created to provide avenues for consumers to achieve greater financial freedom by using equity in their homes. FOA has built many companies that have become leaders in their fields, including Reverse, Commercial and Lender Services. Together, with the Portfolio Management and Home Improvement businesses, they form FOA’s platform for Specialty Finance and Services (SF&S) solutions.
FOA acting chief executive Graham Fleming said: “The divestiture of the forward mortgage segment will enable FOA to optimize its resources and prioritize companies that have a clear market opportunity and greater growth potential. Additionally, the 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 with 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 assist our departing employees in their search for employment opportunities and are actively working to facilitate the transition of many of these employees into 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 of the strength of FOA’s SF&S business, Fleming noted that the reverse segment recently debuted its partnership with Morningstar to educate 150,000 participating financial advisors about reverse mortgages and other condominium options available to clients age 55 and 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 commercial business, which provides fix-and-flip loans, rental portfolio loans and other financing for residential investment properties, also has dominant market share in its vertical. FOA’s home improvement business continues to grow and serves as an effective customer acquisition channel. FOA’s portfolio management and capital markets capabilities support proprietary product innovation and connect FOA’s loans to a growing universe of large institutional investors. In addition, the lender services business continues to rapidly grow the number of third-party lenders it serves by introducing new technology-enabled products, including augmented reality solutions for virtual appraisals and a new tax solution product to help homeowners lower their property tax bills.
About Finance of America Companies
Finance of America (NYSE: FOA) is a specialty consumer loan financing platform that offers pathways to greater financial freedom through home equity. Through FOA’s subsidiaries, customers have access to a wide range of flexible, end-to-end home financing and condominium solutions including home improvement loans and reverse mortgages as well as loans to residential real estate investors distributed across retail, third-party networks, and digital channels. In addition, FOA’s businesses offer complementary lending services to enhance the customer experience, as well as capital markets and portfolio management capabilities to optimize distribution to investors. FOA is headquartered in Plano, TX. For more information, visit www.financeofamerica.com.