Business Context and Reporting Period
Company: Finance of America Companies Inc. (FOA)
Filing Type: Form 8-K (Current Report)
Date of Report: November 17, 2025
Event: Entry into a Material Definitive Agreement to acquire assets from PHH Mortgage Corporation.
Key Financial Metrics
This filing is a current report regarding a material agreement and does not contain periodic financial statements. Consequently, specific values for revenue, profit, cash flow, margins, debt, and liquidity are not provided in this document.
Material Changes and Transaction Details
On November 17, 2025, Finance of America Reverse LLC (FAR), an indirect subsidiary of FOA, entered into three agreements with PHH Mortgage Corporation (PHH) collectively known as the "PHH Purchase Agreements":
- Asset Purchase Agreement: FAR will purchase PHH's residential reverse mortgage loan origination and servicing business assets and liabilities.
- Reverse Mortgage Servicing Rights Purchase and Sale Agreement: Acquisition of a portfolio of reverse mortgage servicing rights.
- Mortgage Loan Sale Agreement: Acquisition of a portfolio of residential reverse mortgage loans.
Consideration: FAR will pay an amount at closing equal to the estimated book value of the purchased assets, subject to customary holdbacks and post-closing price adjustments.
Subservicing Arrangement: PHH will act as FAR's subservicer for a period of three years following the transaction, with options to extend.
Conditions, Risks, and Outlook
Conditions Precedent: The transaction is subject to the consent of the Government National Mortgage Association (Ginnie Mae) to transfer servicing rights without adverse modifications.
Termination Rights: Either party may terminate the agreement if the transaction is not consummated by May 1, 2026. This date may be extended by FAR under certain circumstances.
Management Commentary: The Company issued a press release on November 18, 2025, announcing the transaction (Exhibit 99.1), which is furnished but not deemed "filed" for liability purposes under Section 18 of the Exchange Act.
Investor Verification Checklist
- Verify the final purchase price and any post-closing adjustments once the transaction closes.
- Confirm receipt of Ginnie Mae consent for the transfer of servicing rights.
- Monitor the May 1, 2026, deadline for transaction consummation or potential extensions.
- Review the terms of the three-year subservicing agreement with PHH for operational risks.
- Assess the impact of the acquired loan and servicing portfolios on future earnings and capital requirements in subsequent periodic filings (10-Q/10-K).