Onity to sell $5B reverse mortgage business to Finance of America

What’s happening

West Palm Beach-based Onity Group is selling its $5 billion reverse mortgage book to Finance of America, the largest player in the space. Onity expects $70–80 million in net profit from the sale; Finance of America further entrenches its lead in the U.S. reverse mortgage market.

Why this matters if you’re a Florida buyer or owner

Florida has one of the country’s highest concentrations of homeowners 62 and older — the age at which a Home Equity Conversion Mortgage (HECM, the federally insured reverse mortgage) becomes available. Two takeaways for that audience:

If you already have a reverse mortgage

Servicing transfers are routine in this industry. Your loan terms — interest rate, line-of-credit growth, payment structure — do not change when servicing moves. What changes is the company that sends statements and handles requests. Watch for written notice before any transfer, and verify any new payment instructions before sending money.

If you’re considering one

Reverse mortgages are a legitimate planning tool for the right situation, and a costly mistake in others. The basics:

• You must be 62+ and live in the home as your primary residence.
• You still owe property taxes, insurance, and HOA dues. If you fall behind, the loan can be called.
• Closing costs are higher than a traditional mortgage — often several thousand dollars in mortgage insurance premiums alone.
• The balance grows. Interest accrues, so the amount owed when you (or your heirs) sell can be substantially more than what was originally drawn.

What to ask a lender

• What’s the total cost over a 10-year holding period — interest, mortgage insurance, servicing fees?
• How does the line of credit option compare to a lump sum or monthly draw for my situation?
• What happens to my spouse / heirs if I pass away?

Related FAQs

• Pre-qualified vs pre-approved
• Closing costs in Florida