Waterfall AM extends partnership with mortgage servicer Onity Group
Waterfall Asset Management has extended its partnership with mortgage servicer Onity Group, whereby Onity will buy reverse mortgage assets from its subsidiary.
Waterfall, which is an alternative asset manager with $12.6bn (£9.8bn) under management, announced that it has entered into a letter of intent with Onity. It has long since partnered with the NYSE-listed firm on reverse mortgage servicing.
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Under the new agreement, Onity will acquire reverse mortgage assets from Mortgage Assets Management, a subsidiary of investment funds managed by Waterfall.
A reverse mortgage is a loan that allows older homeowners to borrow money against the equity in their home and receive the proceeds as a lump sum or fixed monthly payment. Unlike a regular mortgage, a reverse mortgage doesn’t require the homeowner to make any loan payments during their lifetime.
“This transaction is an exciting development for Waterfall, showcasing our commitment to growing our reverse mortgage initiatives through partnerships with top firms like Onity,” said Leo Wong, partner at Waterfall. “This strategic partnership combines our capital and expertise with Onity’s operational capabilities, enabling us to seek exceptional investment opportunities. We look forward to expanding this collaboration to leverage our complementary strengths.”
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The assets expected to be transferred are already subserviced by PHH Mortgage Corporation, which is a subsidiary of Onity, and include Home Equity Conversion Mortgages (HECM) and HECM-backed securities.
“We are excited about today’s announcement and what it means for our ability to continue growing our HECM activities,” said Wong. “We see HECMs as a valuable tool for homeowners in today’s environment, many of whom have accumulated substantial equity but also benefit from low mortgage rates so want to access that equity without selling their home, and are pleased to be able to support the growth of this dynamic sector of real estate finance.”
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