Finance of America Reverse ranking confirmed by Morningstar DBRS

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Finance of America Reverse ranking

Highlights

Morningstar DBRS confirmed Finance of America Reverse LLC's MOR RVO2 reverse mortgage originator ranking with a Stable trend, citing operational depth and compliance.
FAR's all-cash acquisition from Onity Mortgage Corporation closes June 30, 2026, adding servicing rights for about 20,000 HECMs with a $5.2 billion unpaid principal balance.
In 2025, FAR originated approximately 9,600 reverse mortgages totaling over $2.4 billion and, as of March 31, 2026, managed loans with $29.4 billion unpaid principal balance.

Ranking confirmation and business profile

As reported by Morningstar DBRS, DBRS, Inc. confirms its MOR RVO2 residential reverse mortgage originator ranking for Finance of America Reverse LLC, with the trend remaining Stable.

The agency says the ranking reflects the company's origination capabilities, experienced leadership and operational depth. It also points to FAR's organizational framework, compliance culture, underwriting procedures, servicing oversight, portfolio management practices and technology capabilities as key factors supporting the Stable trend.

Finance of America Reverse focuses on home equity-based financing for senior homeowners, primarily through the U.S. Department of Housing and Urban Development-insured home equity conversion mortgage product and its proprietary HomeSafe reverse mortgage. The company, founded in 2003 as Urban Financial Group, is an indirect subsidiary of Finance of America Equity Capital LLC, which is controlled by Finance of America Companies Inc.

Finance of America restructures its broader business during 2022 and 2023 by exiting traditional mortgage lending, commercial mortgage lending, home improvement lending and lender services. The group says it is building a more streamlined retirement solutions platform aimed at homeowners aged 55 and over.

Portfolio growth and industry footprint

FAR deepens its market reach through acquisitions completed over the past several years. After entering an asset purchase agreement with American Advisors Group in December 2022, the company completes that transaction on March 31, 2023, and in 2024 finishes integrating the acquired operational assets while unifying the FAR and AAG brands under the Finance of America name.

Its latest expansion comes through an agreement signed on November 17, 2025, to acquire a HECM servicing portfolio and other reverse mortgage origination assets from Onity Mortgage Corporation, a subsidiary of Onity Group Inc. The all-cash deal closes on June 30, 2026, adding mortgage servicing rights tied to about 20,000 HECMs with an unpaid principal balance of $5.2 billion, along with a reverse mortgage loan pipeline, selected origination staff and a subservicing agreement intended to preserve operational continuity.

Based in Tulsa, Oklahoma, FAR is licensed across all 50 states, Washington, D.C., and Puerto Rico, and originates and acquires loans through retail and wholesale channels. In 2025 it originates about 9,600 reverse mortgages worth more than $2.4 billion, and as of March 31, 2026, it manages roughly 88,365 HECMs, HomeSafe loans and other mortgage loans with an unpaid principal balance of about $29.4 billion.

As of March 31, 2026, the company has 451 employees, while its senior management team averages more than 23 years of industry experience. Morningstar DBRS says the underwriting team manually reviews each loan file and averages more than 10 years of industry experience, a factor that supports the company's standing in a specialized segment of the residential mortgage market.

In our earlier article on the Tower Bridge Funding 2026-2 PLC transaction, we covered Morningstar DBRS’s provisional (P) AAA (sf) rating on the deal’s UK RMBS Class A notes backed by Vida Bank’s residential mortgages. We also outlined how the structure relies on credit enhancement and an amortising liquidity reserve fund to support senior expenses and potential interest shortfalls under stress scenarios.

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