Finance of America adds Ocwen as a reverse mortgage subservicer

Finance of America Reverse has entered into a subservicing agreement with PHH Mortgage, a subsidiary of Ocwen Financial. Terms of the deal were not disclosed.

In March, Finance of America renewed its relationship with its primary subservicer Celink. Its hybrid proprietary product was being subserviced by ServiceMac, according to the 2022 10-K filing.

The new deal gives FAR an option for a secondary subservicer.

The company had 62,879 reverse mortgages in its servicing portfolio with an active loan unpaid principal balance of $17.9 billion at the end of 2022, according to the filing. It is not clear whether those are just traditional reverse mortgages or also includes the MSRs from the proprietary offering.

Those numbers also do not include any mortgage servicing rights from American Advisor Group, which FAR agreed to acquire in December.

AAG is the nation's top originator of Home Equity Conversion Mortgages, the Federal Housing Administration-insured loan that makes up an overwhelming share of reverse lending activity.

The deal took place after Finance of America announced it was exiting all forward mortgage origination operations.

PHH currently subservices $23 billion of reverse mortgages. It did not have any prior relationship with Finance of America or AAG.

This agreement will allow PHH to meaningfully grow that business line, it said in a press release. It did not disclose how many MSRs it will be adding from Finance of America Reverse.

"We are very pleased to enter into this new subservicing relationship with FAR," Scott Anderson, executive vice president and chief servicing officer for PHH, said in the release. "This agreement is consistent with one of our core business strategies of growing our subservicing portfolio and is a testament to the strength and quality of our servicing platform as a premier subservicer for both forward and reverse mortgages."