Finance of America (FOA) continues to solidify its position as a dominant force within the reverse mortgage sector, navigating a complex economic landscape defined by fluctuating interest rates and shifting demographic needs. As the industry moves through the mid-2020s, FOA has emerged not only as a volume leader but as a strategic innovator, balancing traditional Federal Housing Administration (FHA) products with a growing suite of proprietary solutions. In a recent comprehensive discussion, Finance of America CEO Graham Fleming outlined the company’s trajectory, emphasizing a transition from a product-centric approach to a consumer-choice model designed to unlock the trillions of dollars in home equity held by American seniors.
Fleming, who has been a fixture at the Texas-based lender for nearly 13 years, took the helm as CEO in 2023. His appointment coincided with one of the most significant consolidations in the history of the reverse mortgage market: FOA’s acquisition of American Advisors Group (AAG). This merger combined FOA’s wholesale prowess and proprietary product development with AAG’s massive retail footprint and brand recognition. By the first half of 2026, the synergy of these entities became evident as FOA surged to the top of the Home Equity Conversion Mortgage (HECM) leaderboard, recording nearly 2,500 endorsements and maintaining a commanding market share despite broader industry headwinds.
The Strategic Shift Toward Proprietary Solutions and Consumer Choice
The reverse mortgage industry has historically been synonymous with the HECM program, a government-insured product regulated by the Department of Housing and Urban Development (HUD). However, as interest rates rose in the early 2020s, traditional HECM production faced challenges. Fleming argues that focusing solely on HECM volume is a narrow view of the market’s potential. Instead, FOA has prioritized "choice," a strategy rooted in the development of proprietary, or "private-label," reverse mortgages.
FOA launched its proprietary suite in 2019, recognizing that the rigid limits of the HECM program did not suit every borrower, particularly those with high-value homes or specific liquidity needs. These proprietary products, often referred to as "jumbo" reverse mortgages, allow borrowers to access equity beyond the FHA’s maximum claim amount. More recently, the company has seen significant traction with its "HomeSafe Second" product—a second-lien reverse mortgage.
This innovation addresses a specific modern dilemma: many seniors are currently "locked in" to historically low interest rates on their primary forward mortgages. Under a traditional HECM, these borrowers would have to refinance their entire first mortgage at a higher current rate to access equity. The second-lien product allows them to keep their low-rate first mortgage intact while still tapping into their home’s value without adding a monthly principal and interest payment. This product has recently expanded into four new state markets, reflecting FOA’s commitment to geographical and product diversification.
Financial Foundations and Capital Commitments
The growth of Finance of America’s proprietary arm is supported by robust capital partnerships. In 2024, the company secured a significant commitment from Blue Owl Capital, which included a $50 million equity investment and a $2.5 billion whole-loan purchase agreement. This partnership provides FOA with a reliable outlet for its proprietary production, insulating the company from some of the volatility seen in the traditional securitization markets.
Fleming noted that while FOA has been a regular issuer of proprietary securitizations since 2020, having a partner like Blue Owl reinforces investor confidence in the reverse mortgage asset class. This institutional interest is critical at a time when the secondary market for reverse mortgages—specifically the HECM Backed Securities (HMBS) market—has faced liquidity concerns. By cultivating a diverse base of bond buyers and whole-loan investors, FOA ensures it has the liquidity necessary to continue funding loans even when government-backed channels face constraints.
Operational Expansion Through the Onity Asset Acquisition
Beyond product development, FOA has been active on the M&A front to bolster its servicing and operational capabilities. The recent acquisition of assets from Onity Mortgage (formerly known as Ocwen/Liberty Reverse Mortgage) represents a strategic move to scale FOA’s servicing portfolio. The transaction, which closed on June 30, 2026, was modified following discussions with Ginnie Mae to focus on newer portions of the Onity book.
As part of this deal, FOA integrated approximately 13 key personnel from Onity’s origination and operations teams. The acquisition also allowed FOA to diversify its subservicing platform. By utilizing both Celink and Onity for subservicing, FOA aims to create a "best-in-class" service environment for its borrowers. Furthermore, the partnership includes a reciprocal agreement where FOA offers its second-lien proprietary products to seniors within Onity’s existing forward mortgage servicing portfolio, creating a new pipeline for lead generation.
Marketing and the Modernization of the Reverse Mortgage Brand
For decades, the reverse mortgage industry relied heavily on celebrity spokespeople to build trust with a skeptical public. Most notably, AAG utilized actor Tom Selleck to normalize the product. Under Fleming’s leadership, FOA is pivoting away from this traditional celebrity-driven model toward a broader, brand-centric strategy. The company has invested in a new marketing leadership team, including a new Chief Marketing Officer, to modernize the "FOA" brand across all distribution channels, including digital, streaming, print, and television.
The goal of this rebranding is twofold: to increase general consumer awareness and to educate financial professionals. Fleming emphasizes that reverse mortgages should be viewed as a mainstream retirement planning tool rather than a "loan of last resort." This involves a concerted effort to reach forward mortgage professionals, financial advisors, and estate planners, ensuring they understand how home equity can mitigate the "retirement shortfall" facing millions of Americans.
Data indicates that U.S. seniors hold over $13 trillion in home equity, yet only a small fraction of this wealth is currently being utilized to support retirement. FOA’s strategy is built on the premise that as 10,000 "Baby Boomers" turn 65 every day, the demand for sophisticated equity-release products will inevitably rise, provided the industry can overcome historical stigmas through education and transparent digital experiences.
The Regulatory Landscape and Advocacy for HMBS 2.0
While FOA continues to innovate in the private sector, it remains deeply engaged with federal regulators regarding the future of the HECM program. The industry is currently awaiting a formal response from HUD following a Request for Information (RFI) regarding the HECM and HMBS programs. A primary concern for FOA and the National Reverse Mortgage Lenders Association (NRMLA) is the introduction of "HMBS 2.0."
The proposed HMBS 2.0 framework is designed to provide greater liquidity for HECM buyouts—the process where lenders must buy loans out of Ginnie Mae pools once they reach 98% of the maximum claim amount. Currently, these buyouts place a significant capital strain on lenders. A revised program would allow for the securitization of these buyout loans, potentially freeing up billions of dollars in capital that could be reinvested into new originations.
Fleming, while optimistic, has remained cautious regarding the timeline for these regulatory changes. He acknowledged that previous predictions for a HUD response have been delayed, but he reiterated that FOA remains a key participant in the dialogue, providing data and feedback to ensure the long-term sustainability of the FHA-insured program.
Implications and Future Outlook
The trajectory of Finance of America under Graham Fleming suggests a maturation of the reverse mortgage industry. By moving beyond a single-product focus and embracing a multi-channel, capital-diverse business model, FOA is positioning itself as a comprehensive "home equity solutions" provider. The integration of the AAG and Onity assets has given the company the scale necessary to lead the market, while partnerships with tech-forward entities like Better.com for HELOC solutions show a willingness to adapt to modern consumer preferences.
As the company prepares to release its second-quarter earnings, analysts will be looking for continued evidence that FOA’s proprietary products can offset any volatility in the HECM market. The broader implication for the mortgage industry is clear: as the population ages and traditional retirement accounts face inflationary pressure, the home will become an increasingly vital component of the American retirement safety net. Finance of America’s current strategy is a bet on that inevitability, focusing on the intersection of technology, regulatory advocacy, and product innovation to serve the next generation of retirees.
The evolution of FOA from a niche lender to a publicly traded industry leader reflects a broader shift in financial services where home equity is no longer viewed as a static asset, but as a dynamic tool for financial longevity. Through strategic acquisitions, a focus on "choice," and a commitment to operational excellence, Finance of America appears poised to remain the primary face of this evolving sector for the foreseeable future.
