Onity wins approval for revised reverse MSR sale to FOA

Onity Group Inc. won regulatory approval for a FOA will also acquire Onity’s pipeline of reverse mortgage loans, and Onity will exit the reverse mortgage origination business. The company expects total proceeds of $70 million to $80 million from the transaction, based on the book value of the assets as of April 30.

HMBS concentration

Ginnie Mae did not approve the original terms of the transaction, the companies said, although no additional details were provided.

But Ginnie Mae data on Home Equity Conversion Mortgage-backed Securities (HMBS) compiled by New View Advisors show that FOA and Onity The transaction remains subject to customary closing conditions. Onity said it will provide an update on the anticipated closing date at a later time.

Onity’s board also authorized a share repurchase program of up to $20 million of the company’s common stock. The authorization “reflects our intent to deploy capital in a disciplined and strategic manner with the goal of delivering meaningful returns to our shareholders,” Messina said.