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Finance of America Mortgage, a nonbank lender that went public last year, is shutting down its wholesale and correspondent lending channels after laying off more than 1,000 people this year amid mounting losses.
The Irving, Texas-based lender is also reportedly in negotiations to sell its retail mortgage division, which employs about 1,000 loan originators who work out of more than 200 branch offices nationwide.
Finance of America Mortgage TPO — the division of the company that works with mortgage brokers and correspondent lenders — sent out an email notice Friday informing partners it would no longer fund brokered or purchased loans after Dec. 16.
“We realize this decision will impact your relationships,” the notice said. “The FAM team will continue to ensure that your borrowers and you receive the same exceptional service that you have received from us over the years to ensure that your existing pipeline with us closes smoothly and on time.”
Friday was the last day for mortgage brokers and correspondent lenders to submit a new floating loan or complete a new forward lock to Finance of America, and Oct. 28 will be the last day to lock loans currently in the pipeline or submit credit packages on previously locked loans, the company said.
Finance of America’s commercial and reverse mortgage lending operations “will continue accepting new applications and operate business as usual,” the company said.
Valued at nearly $2 billion when it went public last year in a SPAC merger, Finance of America Mortgage does most of its business through its retail and consumer direct channels.
Finance of America’s loan origination channels
Loan originations by channel, in billions of dollars Source: Finance of America quarterly…
