Finance of America’s Graham Fleming on HECM demand, second liens and Onity deal

Why this matters

The prominence of Finance of America (FOA) in the reverse mortgage space, particularly as a leading originator of Home Equity Conversion Mortgages (HECMs), underscores a nuanced shift in capital flows within US residential real estate finance. For institutional investors and lenders, FOA’s scale signals sustained demand for alternative credit products that tap into aging homeowners’ equity, a demographic trend unlikely to abate. The mention of second liens alongside HECM activity suggests a layering of capital structures that could complicate risk profiles but also create yield opportunities in a low-rate environment. FOA’s public status adds transparency to a sector often opaque, offering allocators clearer insight into performance and underwriting standards. The reference to the Onity deal, while unspecified, hints at strategic asset repositioning or capital recycling, reflecting broader market dynamics where firms recalibrate portfolios amid tightening lending conditions and evolving regulatory scrutiny. Collectively, these developments point to a maturing reverse mortgage market that institutional capital is increasingly willing to engage, balancing demographic-driven demand against credit risk and regulatory complexity. This evolution merits close attention from allocators seeking differentiated exposure within residential credit and from lenders navigating layered capital stacks.

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On the RET wire

• Disclosed capital deal value tracked in July 2026: $22.3B across 56 reported transactions.

Computed from Real Estate Trail’s own tracked coverage

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