DBRS Morningstar Publishes Residential Reverse Mortgage Originator Ranking Report on Finance of America Reverse LLC

DBRS, Inc. (DBRS Morningstar) published its residential reverse mortgage originator ranking report on Finance of America Reverse LLC (FAR or the Company).

DBRS Morningstar previously assigned an MOR RVO2 residential reverse mortgage originator ranking to FAR. The trend is on the ranking is Stable.

FAR is a residential mortgage originator primarily focused on providing senior homeowners reverse mortgages through the U.S. Department of Housing and Urban Development (HUD)-insured home equity conversion mortgages (HECMs) and a proprietary jumbo reverse mortgage product branded as HomeSafe. FAR, founded in 2003 as Urban Financial Group, Inc., is a leader in the niche market of reverse mortgage lending and is a wholly owned indirect subsidiary of Finance of America Equity Capital LLC (FOAEC). Finance of America Companies Inc. (Finance of America or FOA) directly and indirectly owns a portion of the ownership interests in FOAEC and controls FOAEC. In 2021, as of September 30, 2021, FAR originated approximately 9,504 reverse mortgages totaling more than $2.9 billion and had a servicing portfolio of approximately 58,000 reverse mortgage loans totaling approximately $14.3 billion that is subserviced by a third-party servicer, which performs all of the day-to-day servicing functions.

All rankings are subject to surveillance, which could result in rankings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar mortgage originator rankings are not credit ratings. Instead, they are designed to evaluate the quality of the parties that originate residential mortgage loans. Although the originator’s financial condition contributes to the applicable ranking, its relative importance is such that a originator’s ranking should never be considered as a proxy of its creditworthiness.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is U.S. Residential Mortgage Originator Rankings (August 28, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

For more information on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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