Finance of America Sharpens Focus on Specialty Finance and Services Business, Plans to Discontinue Forward Mortgage Originations

PLANO, Texas–(COMMERCIAL WIRE)–Finance of America Companies Inc. (NYSE: FOA) (the “Company” or “FOA”), a leading specialized financial solutions platform, today announced its decision to discontinue operations of its term mortgage origination segment both in the retail sector and wholesale channels by the end of the year.

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FOA was created to provide avenues for consumers to achieve greater financial freedom through the use of equity in their home. FOA has built many businesses that have become leaders in their fields, including investment, trading and lending services. Together, along with the portfolio management and home improvement business, they make up FOA’s specialty finance and services (SF&S) solutions platform.

FOA Acting Executive Director Graham Fleming said: “The discontinuation of the term mortgage origination segment will allow FOA to optimize its resources and prioritize businesses that have a different market opportunity and higher growth potential. In addition, the move will accelerate the company’s ability to partner with large mortgage lenders and other financial services companies to offer FOA’s SF&S solutions on their platforms. Our decision was made with careful consideration and we understand the impact this action will have on many of our employees and their families. We provide support and resources to help our departing employees in their search for employment opportunities, and we are actively working to ease the transition of many of these employees to roles at other mortgage lenders. The affected employees have been valued members of our team for a long time and we recognize the many contributions they have made to the company.”

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Speaking about the strength of FOA’s SF&S business, Fleming noted that the reverse segment recently debuted in its collaboration with Morningstar to educate 150,000 participating financial advisors about reverse mortgages and other real estate equity options available to clients 55 and older. FOA has the leading reverse mortgage platform in an industry with strong structural tailwinds and has been the backbone of the FOA model since the company’s inception.

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FOA’s commercial business, which provides fixed loans, rental portfolio loans and other financing for residential investment properties, also commands a dominant market share in its vertical. FOA’s home improvement business continues to grow and serves as an efficient customer acquisition channel. FOA’s capital markets and portfolio management capabilities support proprietary product innovation and connect FOA-originated loans with an expanding universe of large institutional investors. In addition, the lender servicing business continues to rapidly increase the number of third-party lenders it serves by introducing new technology-enabled products, including augmented reality solutions for virtual appraisals and a new tax solutions product to help homeowners reduce their property tax bills.

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About Finance of America Companies

Finance of America (NYSE: FOA) is a specialty finance consumer lending platform that provides pathways to greater financial freedom through home equity. Through FOA’s subsidiaries, clients have access to a wide range of comprehensive and flexible home financing and home equity solutions, including home improvement and reverse mortgage loans, as well as residential real estate investor loans distributed to through retail and third-party networks and digital channels. In addition, FOA firms offer complementary lending services to enhance the client experience, as well as portfolio management and capital markets capabilities to optimize distribution to investors. FOA is headquartered in Plano, TX. For more information, visit www.financeofamerica.com.

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