Waterfall Asset Management Expands Partnership with Onity Through Transfer of Reverse Mortgage Assets

Rhea-AI Summary

Waterfall Asset Management has announced a strategic partnership expansion with Onity Group Inc. (NYSE: ONIT), involving the transfer of reverse mortgage assets from Waterfall's subsidiary, Mortgage Assets Management, (MAM), to Onity. The assets include Home Equity Conversion Mortgages (HECMs) and related securities, which are already subserviced by Onity's subsidiary, PHH Mortgage

Leo Wong, Partner at Waterfall, emphasized the transaction's importance in growing their reverse mortgage initiatives and leveraging complementary strengths with Onity. Wong also highlighted the value of HECMs for homeowners seeking to access equity without selling their homes, especially in the current low mortgage rate environment.

This move demonstrates Waterfall's commitment to expanding its presence in the reverse mortgage sector while capitalizing on Onity's operational capabilities.

Positive

• Strategic partnership expansion with Onity Group Inc. (NYSE: ONIT)
• Transfer of valuable reverse mortgage assets to Onity
• Potential for growth in the Home Equity Conversion Mortgage (HECM) sector
• Leveraging complementary strengths between Waterfall and Onity

Negative

• None.

NEW YORK, Aug. 13, 2024 /PRNewswire/ -- Waterfall Asset Management, LLC ("Waterfall" or the "Firm"), a global alternative investment adviser with a focus on specialized asset oriented markets, announced today that it has entered into a letter of intent with Onity Group Inc. (NYSE: ONIT)("Onity"), a leading non-bank mortgage servicer and originator that Waterfall has long partnered with on reverse mortgage servicing, under which Onity will acquire reverse mortgage assets from Mortgage Assets Management, LLC ("MAM"), a subsidiary of investment funds managed by Waterfall.

"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."

"We are excited about today's announcement and what it means for our ability to continue growing our Home Equity Conversion Mortgage 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."

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") together with Home Equity Conversion Mortgage-Backed Security related borrowings and certain related reverse mortgage assets.

About Waterfall Asset Management
Waterfall Asset Management is a global alternative investment manager focused on specialty finance opportunities within asset-backed credit, whole loans, real assets, and related strategies. Founded in 2005, the firm utilizes a relative value approach for sourcing and investing in the private and public markets, across 60+ sectors of the asset-based finance arena. Through this multi-sector specialization, Waterfall seeks to provide its clients a compelling risk/return profile which is generally uncorrelated to most traditional investment opportunities. Waterfall is also the external manager to Ready Capital Corporation (NYSE: RC), a multi-strategy real estate finance company and small business lender. Waterfall is headquartered in New York City, with additional offices in London and Dublin. As of January 1, 2024, Waterfall manages approximately $12.6 billion in assets under management. To learn more, please visit www.waterfallam.com.

Media Contact
Prosek Partners
Josh Clarkson / Devin Shorey
pro-waterfallpr@prosek.com 

 

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SOURCE Waterfall Asset Management

FAQ

What assets is Waterfall Asset Management transferring to Onity Group Inc. (NYSE: ONIT)?

Waterfall Asset Management is transferring Home Equity Conversion Mortgages (HECMs), HECM-Backed Security related borrowings, and certain related reverse mortgage assets to Onity Group Inc.

How does the asset transfer affect the current servicing of the mortgages?

The assets being transferred are already subserviced by PHH Mortgage , a subsidiary of Onity Group Inc., so there should be minimal disruption to the current servicing arrangements.

What is the strategic importance of this partnership for Waterfall Asset Management?

This partnership allows Waterfall to grow its reverse mortgage initiatives, combine its capital and expertise with Onity's operational capabilities, and seek exceptional investment opportunities in the HECM sector.

When was the letter of intent for this asset transfer announced?

The letter of intent for the asset transfer between Waterfall Asset Management and Onity Group Inc. (NYSE: ONIT) was announced on August 13, 2024.