Companies

Finance of America Completes Onity HECM Servicing Purchase

The Tip Desk · August 4, 2026 · 3 min read

Funded volume reached $730 million as the company closed the Onity HECM servicing deal and posted a $29 million GAAP loss.

Finance of America Companies Inc. (FOA), a provider of home equity-based financing for older homeowners, completed the acquisition of Onity’s HECM servicing portfolio in June and lifted funded volume to $730 million, a 21% increase from a year earlier after a 6% year-over-year rise in the first quarter.

The sequential step-up in originations was the quarter’s defining operating turn. Retirement Solutions, which generates fees at origination and from initial estimates of net origination gains, accounted for that volume. Total revenue in the segment rose 19% year over year to $74 million, with revenue margins relatively stable at 10.1%. Pre-tax income in Retirement Solutions held at $10 million, matching both the prior quarter and the year-ago quarter. Adjusted net income in the segment was $15 million.

GAAP results moved the other way. Total revenues fell 48% sequentially to $62 million from $120 million, and 65% from $177 million a year earlier. Net income from continuing operations swung to a $29 million loss from $35 million of profit in the first quarter and $80 million a year earlier. Diluted earnings per share turned to a $1.28 loss from $0.88 of profit in the prior quarter. Basic earnings attributable to holders of Class A common stock were $0.10, or $1 million.

Portfolio Management absorbed the fair-value hit. Total revenue in the segment collapsed 98% sequentially to $1 million from $66 million, and 99% from $130 million a year earlier. Pre-tax income swung to a $26 million loss from $36 million of profit in the first quarter and $108 million a year earlier, which the company said reflected negative non-cash fair value adjustments on retained interests in securitizations, partially offset by higher accreted yield on residual interests. Adjusted net income in Portfolio Management was $18 million. Assets under management rose 19% sequentially to $37.04 billion.

On a company-wide adjusted basis, net income declined 27% sequentially to $19 million from $26 million, while still rising 36% from $14 million a year earlier. Adjusted earnings per share fell 24% sequentially to $0.84 from $1.10, and rose 53% from $0.55 a year earlier. Adjusted EBITDA declined 20% sequentially to $35 million from $44 million, and rose 17% from $30 million a year earlier.

The Onity close reshaped the balance sheet. Securitized loans held for investment rose to $35.97 billion from $30.09 billion at March 31, 2026. Total assets and total liabilities each increased 19%. Cash and cash equivalents fell 21% sequentially to $85 million from $108 million; the company said cash generation from originations and capital markets provided the majority of the funding for the Onity purchase. Total equity declined 7% sequentially to $407 million from $438 million. Tangible equity was $246 million, or $13.31 a share.

Chief Executive Officer Graham A. Fleming said operational improvements and investments were translating into a stronger, more scalable business, that demand was strengthening, and that conversion and sales productivity were improving.

For the first half of 2026, the company recognized $1.99 in basic earnings per share, or $17 million of net income attributable to holders of Class A common stock, and $0.41 in diluted earnings per share, or $6 million of net income. Adjusted earnings for the six months were $1.94 a share, or $45 million of adjusted net income. Retirement Solutions pre-tax income for the half was $20 million, up 43% from $14 million in the first half of 2025. Portfolio Management year-to-date adjusted net income was $46 million.

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