Finance of America (FOA) continues to solidify its position as a dominant force within the reverse mortgage sector, navigating a complex economic environment defined by fluctuating interest rates and evolving consumer needs. As the company prepares to release its second-quarter earnings report on August 4, it does so from a position of renewed market leadership. In the first half of 2026, the Texas-based lender ascended to the top of the Home Equity Conversion Mortgage (HECM) leaderboard, securing nearly 2,500 endorsements. This performance follows a strategic pivot initiated under the leadership of CEO Graham Fleming, who assumed the role in 2023 during the critical integration of American Advisors Group (AAG). Fleming, a veteran of the firm for over 13 years, recently detailed the company’s trajectory, emphasizing a shift toward product diversification, technological integration, and a broader educational mission aimed at mainstreaming home equity solutions for the aging American population.
The Strategic Shift Toward Consumer Choice and Proprietary Innovation
While the broader reverse mortgage industry has grappled with a slowdown in HECM production—a trend influenced by the high-interest-rate environment of recent years—Finance of America has focused on a strategy of "consumer choice." The company’s approach is predicated on the belief that the traditional FHA-insured HECM is no longer the sole solution for every senior. Fleming notes that the industry’s primary challenge is not a lack of demand, but rather the need for products that align with the specific financial realities of modern retirees.
Since 2019, FOA has aggressively developed its proprietary suite of products, which are not subject to the same federal limit constraints as HECMs. These "prop loans" allow the company to offer higher proceeds to borrowers with higher-value homes, often referred to as jumbo reverse mortgages. However, the most significant innovation in recent years has been the reintroduction and expansion of the second-lien reverse mortgage, branded as HomeSafe Second.
The HomeSafe Second product addresses a specific demographic: seniors who locked in historically low interest rates on their primary mortgages during the 2020-2021 period. For these individuals, a traditional HECM—which requires the payoff of the existing first lien—would be financially counterproductive, as it would force them to trade a 3% interest rate for a much higher current market rate. By offering a second-lien option, FOA allows seniors to access their home equity without disturbing their low-rate first mortgage and without adding a monthly principal and interest payment. This product has recently expanded into four additional state markets, signaling FOA’s commitment to geographic growth and niche financial problem-solving.
Institutional Backing and Secondary Market Stability
A critical component of FOA’s ability to innovate is its robust relationship with institutional investors and the secondary market. In 2023, the company secured a $2.5 billion commitment from Blue Owl Capital, a move that provided both capital and a significant vote of confidence in the reverse mortgage asset class. This arrangement included a $50 million equity contribution and a facility for Blue Owl to acquire up to $2.5 billion in whole loans from FOA.
This institutional support is vital for the liquidity of proprietary products. Unlike HECMs, which are securitized through the Ginnie Mae HMBS (HECM Backed Securities) program, proprietary loans rely on private securitization. FOA has been a pioneer in this space, executing quarterly proprietary securitizations for over six years. Fleming emphasizes that while the secondary market for reverse mortgages requires constant investor education, the company has cultivated a stable pool of bond buyers who understand the long-term value and risk profile of these assets. This stability allows FOA to remain aggressive in its lending even when government-backed programs face headwinds.
The Onity Asset Acquisition and Operational Expansion
The recent acquisition of assets from Onity Mortgage (formerly Ocwen) represents another milestone in FOA’s growth strategy. The transaction, which closed on June 30, was not without regulatory hurdles. Initially, the deal faced scrutiny from Ginnie Mae, leading to a modification of the original terms. Under the revised agreement, FOA acquired the newer portions of Onity’s Mortgage Servicing Rights (MSR) portfolio, while Onity retained its legacy book.
This acquisition serves multiple strategic purposes. First, it expanded FOA’s servicing portfolio, which is already the largest in the HECM space. Second, it brought approximately 13 experienced originators and operations staff into the FOA fold, bolstering the company’s human capital. Third, FOA established a subservicing partnership with Onity, diversifying its platform alongside its existing relationship with Celink.
Perhaps most importantly, the deal included a cross-marketing partnership. FOA will now offer its second-lien proprietary products to Onity’s extensive forward mortgage servicing portfolio. This creates a direct pipeline to seniors who are already engaged with Onity for their traditional mortgages but may have untapped equity needs that a reverse mortgage could satisfy.
Marketing Evolution: From Celebrity Endorsements to Brand Education
For decades, the reverse mortgage industry relied heavily on celebrity spokespeople to build trust and awareness—most notably Tom Selleck, who served as the face of AAG. However, under Fleming’s leadership, FOA has moved away from this model in favor of a brand-centric, educational approach. The company has overhauled its marketing team, hiring a new Chief Marketing Officer and several key personnel to focus on a multi-channel digital and print strategy.
The goal of this new marketing push is to dismantle the long-standing "myths" associated with reverse mortgages, such as the misconception that the bank takes ownership of the home. FOA is focusing its messaging on the "retirement shortfall"—the gap between many Americans’ savings and their actual needs in a longer-lifespan environment. By positioning home equity as a standard pillar of retirement planning—alongside 401(k)s and Social Security—FOA aims to capture the "Silver Tsunami" of 11,000 Americans turning 65 every day.
The company is also targeting the Business-to-Business (B2B) sector, specifically forward mortgage professionals. Fleming points out that many traditional loan officers do not automatically consider a reverse mortgage for clients over the age of 62. By educating these partners, FOA hopes to integrate reverse mortgages into the broader financial advisory ecosystem.
Technological Integration and the Better Partnership
To modernize the consumer experience, FOA has leaned into technological partnerships. A notable example is its collaboration with Better, a digital-first mortgage lender. By utilizing Better’s proprietary "Tinman" technology—a conversational credit decision engine—FOA has streamlined the process for seniors looking for Home Equity Lines of Credit (HELOCs).
This partnership allows FOA to act as a comprehensive "lender of choice." If a senior enters the FOA ecosystem but is better suited for a traditional HELOC rather than a reverse mortgage, the company can facilitate that through the Better platform. This high-tech, high-speed approach is designed to meet the expectations of a more tech-savvy generation of seniors who prefer digital interfaces and rapid decision-making.
Regulatory Outlook and the Wait for HMBS 2.0
Despite its internal successes, FOA remains subject to the regulatory environment governed by the Department of Housing and Urban Development (HUD) and Ginnie Mae. The industry is currently in a state of anticipation following HUD’s request for information (RFI) regarding potential reforms to the HECM and HMBS programs.
FOA, in conjunction with the National Reverse Mortgage Lenders Association (NRMLA), has submitted extensive recommendations to HUD. Central to these discussions is the concept of "HMBS 2.0," a proposed update to the securitization framework intended to provide more liquidity for HECM buyouts. Under current rules, lenders are required to buy back loans from Ginnie Mae pools when the loan balance reaches 98% of the Maximum Claim Amount (MCA). This requirement can create significant liquidity strain for lenders, especially in a high-interest-rate environment.
Fleming remains optimistic about the prospect of regulatory modernization, though he notes that the timeline for HUD’s response remains uncertain. The company is advocating for more efficient assignment processes and modernized servicing standards that reflect the current digital capabilities of the industry.
Analysis of Broader Industry Implications
The trajectory of Finance of America serves as a bellwether for the reverse mortgage industry at large. The shift from a HECM-centric model to a diversified proprietary model suggests that the private market is increasingly willing to step in where government programs may be limited by rigid mandates.
Furthermore, FOA’s focus on "second-lien" products highlights a structural change in the American housing market. With so many homeowners "locked in" to low-rate mortgages, the traditional "refinance-to-extract-equity" model is broken. FOA’s pivot to second liens is a pragmatic response to this macroeconomic reality, and its success may encourage other lenders to follow suit, potentially creating a more robust private market for senior home equity.
As FOA moves toward its Q2 earnings release, the market will be looking for signs that the AAG integration is fully optimized and that the Onity acquisition is yielding the expected synergies. With a commanding lead in HECM endorsements and a growing footprint in the proprietary space, Finance of America is positioned to remain the primary face of the industry as it navigates the challenges of the late 2020s. The company’s ability to balance regulatory compliance with aggressive product innovation will likely determine whether reverse mortgages can finally achieve the mainstream status that Fleming and his team are pursuing.
