Finance of America Companies Expected To Close On The Acquisition Of AAG In The First Half of 2023

Finance of America CompaniesFinance of America Companies expected to wrap up acquiring the assets of HECM competitor, AAG in the first half of 2023.

FOA officials said the transaction underscores its commitment to strong growth and demographic tailwinds.

AAG officials declined to comment, referring all questions to FOA.

AAG also sold a servicing portfolio of more than 75,000 loans in January totaling $12.1 billion in unpaid principal balance to the bankrupt RMF.

In October, AAG paused new loan submissions and suspended existing applications. In addition, the company later laid off 204 employees including 43 loan officers.

Finance of America said the deal is expected to improve tangible book value. As well as, earnings per share. FOA’s subsidiary, Finance of America Reverse LLC, will operate a separate direct-to-consumer retail channel under the brand name AAG. AAG ads currently reach over 10 million consumers annually in various ways including the use of celebrity spokesperson Tom Selleck. 

FOA expects the transaction to close in the first half of 2023.

Officials said that the existing stockholders and CEO Brian L. Libman have committed to invest an additional $30 million in capital into the company. However, potential investors say the investment is conditional. It is based upon regulatory approval of the deal.

Kristen Sieffert, president of Finance of America Reverse, said it was an exciting day for both companies and the clients they serve. 

“By complementing FAR’s thought leadership and innovation with AAG’s unmatched investments in consumer awareness, we are strengthening a movement to change society’s retirement trajectory for the better and bringing FOA closer to its goal of helping more Americans thrive,” Sieffert said.

FOA filed a Form 8-K with the SEC. The filing also includes all the details of the transaction.

This Article Originally Appeared On Lender Meltdown.

Read More About Mortgage Lending On MFI-Miami.

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