Finance of America Reverse has entered right into a subservicing settlement with PHH Mortgage, a subsidiary of Ocwen Monetary. Phrases of the deal weren’t disclosed.
In March, Finance of America renewed its relationship with its main subservicer Celink. Its hybrid proprietary product was being subserviced by ServiceMac, in line with the 2022 10-Okay submitting.
The brand new deal offers FAR an possibility relating to subservicing.
The corporate had 62,879 reverse mortgages in its servicing portfolio with an energetic mortgage unpaid principal steadiness of $17.9 billion on the finish of 2022, in line with the submitting. It’s not clear whether or not these are simply conventional reverse mortgages or additionally contains the MSRs from the proprietary providing.
These numbers additionally don’t embody any mortgage servicing rights from American Advisor Group, which FAR agreed to amass in December.
AAG is the nation’s prime originator of House Fairness Conversion Mortgages, the Federal Housing Administration-insured mortgage that makes up an awesome share of reverse lending exercise.
The deal came about after Finance of America introduced it was exiting all ahead mortgage origination operations.
PHH presently subservices $23 billion of reverse mortgages. It didn’t have any prior relationship with Finance of America or AAG.
This settlement will enable PHH to meaningfully develop that enterprise line, it stated in a press launch. It didn’t disclose what number of MSRs it will likely be including from Finance of America Reverse.
“We’re very happy to enter into this new subservicing relationship with FAR,” Scott Anderson, government vp and chief servicing officer for PHH, stated within the launch. “This settlement is in step with one in every of our core enterprise methods of rising our subservicing portfolio and is a testomony to the power and high quality of our servicing platform as a premier subservicer for each ahead and reverse mortgages.”