v3.26.1
Subsequent Events
3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
Subsequent Events
16. Subsequent Events
On April 30, 2026, FAR and Onity Mortgage Corporation (formerly known as PHH Mortgage Corporation) (“OMC”) entered into an amendment (the “Amendment”) to the parties’ agreements for the sale of OMC’s reverse mortgage servicing portfolio and certain reverse originations assets. Pursuant to the Amendment, which modifies the terms of the Asset Purchase Agreement and the Reverse Mortgage Servicing Rights Purchase and Sale Agreement, each between FAR and OMC and dated as of November 17, 2025, OMC has agreed to sell and FAR has agreed to purchase MSR with respect to approximately 20,000 HECM loans with an unpaid principal balance of $5.1 billion as of March 31, 2026. Participation interests in such HECM loans have been pooled into securities issued pursuant to Ginnie Mae’s HECM-backed securities program. FAR will also acquire OMC’s pipeline of reverse mortgage loans as of the transaction closing date. In addition, FAR expects to assume certain of OMC’s US-based reverse originations employees in May 2026 and additional employees in July 2026. In exchange therefor, among other things, FAR will pay to OMC an amount at the closing equal to the estimated book value of the purchased assets (including the HECM MSR) with certain mutually agreed upon adjustments, subject to certain customary holdbacks and post-closing price adjustments. The Company is evaluating the agreements to determine whether the transaction will be accounted for as a business combination or asset acquisition.
OMC will become the subservicer for the HECM MSR sold to FAR under a three-year subservicing agreement subject to automatic one-year renewal unless FAR provides notice of non-renewal 180 days prior to the expiration of the original term, and subject thereafter to renewal upon mutual agreement of the parties. OMC has agreed to discontinue its reverse originations business upon closing with the exception of activities relating to the recapture of existing HECM borrowers for any HECM MSR not transferred to FAR.
The transaction is subject to customary closing conditions, including, among others, the consent of Ginnie Mae to the transfer of the HECM MSR from OMC to FAR, without adverse modifications to the rights or obligations of the servicer with respect thereto. The transaction is subject to certain termination rights, including the right of either party to terminate if the transaction is not consummated by August 1, 2026.