v3.26.1
Asset Acquisition
 6 Months Ended
Jun. 30, 2026
Asset Acquisition [Abstract]  
Asset Acquisition
3. Asset Acquisition
On June 30, 2026, FAR completed the acquisition of certain assets and assumed certain liabilities of Onity Mortgage Corporation (formerly known as PHH Mortgage Corporation) (“OMC”) related to OMC’s reverse mortgage loan origination and servicing business (the “OMC Transaction”). The acquired assets included a portfolio of mortgage servicing rights (“MSR”) associated with HECM loans and certain reverse mortgage loan origination assets, including OMC’s reverse mortgage loan pipeline. Participation interests in such HECM loans had previously been pooled into HMBS, and the Company assumed the HMBS related obligations as part of the OMC Transaction. The OMC Transaction was completed pursuant to an Asset Purchase Agreement, a Reverse Mortgage Servicing Rights Purchase and Sale Agreement, and a Mortgage Loan Sale Agreement, each originally entered into on November 17, 2025 (collectively, the “OMC Purchase Agreements”), with the Asset Purchase Agreement and Reverse Mortgage Servicing Rights Purchase and Sale Agreement subsequently amended on April 30, 2026.
The Company concluded that the OMC Transaction should be accounted for as an asset acquisition because substantially all of the fair value of the assets acquired was concentrated in a single group of similar assets. Accordingly, the transaction was accounted for using a cost accumulation and allocation model, whereby the total
cost of the acquisition was allocated to the assets acquired and liabilities assumed based on their relative fair values. As a result, no goodwill was recognized in connection with the transaction.
The following table presents the allocation of the total estimated cost of the acquisition to the assets acquired and liabilities assumed in the OMC Transaction (in thousands):
Consideration transferred:
Cash consideration(1)
$123,858 
Assets acquired:
Loans held for investment, subject to HMBS related obligations$5,574,852 
Loans held for investment54,587 
Other assets42 
Total assets acquired$5,629,481 
Liabilities assumed:
HMBS related obligations$5,503,464 
Payables and other liabilities2,159 
Total liabilities assumed5,505,623 
Net identifiable assets acquired$123,858 
(1) In accordance with the OMC Purchase Agreements, the Company paid cash of $91.8 million on June 30, 2026. An additional $24.9 million is expected to be paid during the third quarter of 2026. The remaining $7.2 million represents a contractual holdback that is expected to be paid through fiscal year 2027. These liabilities are included in Payables and other liabilities in the Condensed Consolidated Statements of Financial Condition.