Finance of America Cements its Position as Leader in Reverse Mortgage Market
Strong Volume Growth, Improved Efficiency, and Robust Cash Generation Mark Q3 2026 for Finance of America.
The company's third quarter 2026 earnings call highlighted several key takeaways that solidified its position as a leader in the reverse mortgage market. With a volume growth of 24% year-over-year, Finance of America expects continued expansion in 2027 and beyond, driven by demographic trends and product development.
"Our retail platform is becoming more efficient and productive," stated Graham Fleming, Chief Executive Officer. Productivity per loan officer has increased by 40% compared to the third quarter of 2025, demonstrating the company's ability to adapt and improve its operations in response to changing market conditions.
However, margins compressed as a result of the Federal Reserve's shift from cutting to raising interest rates. Finance of America has implemented necessary product pricing adjustments, and it expects margins to return to historical levels in the first half of 2027. The company generated $145 million of cash from originations and capital markets activities year-to-date, including $33 million this quarter, which was used to complete several capital actions.
Looking ahead, Finance of America expects adjusted EPS of between $4.00-$5.00 on an annual run rate basis during the second half of 2027, driven by higher volume and normalized margins, partially offset by lower Portfolio Management earnings resulting from higher discount rates.
"Third quarter funded volume was $748 million, compared with $730 million in Q2 2026 and $603 million in Q3 2025," noted Graham Fleming. This growth demonstrates the company's ability to expand its market share and capitalize on emerging trends.
The company's performance is part of a longer story, dating back to 2023 when it began investing in a more focused reverse mortgage platform, a broader proprietary product offering, and the technology and distribution capabilities needed to reach more homeowners. Finance of America has grown volumes on average by 20% each year since 2023.
"Since 2023, we have been investing in a more focused reverse mortgage platform, a broader proprietary product offering, and the technology and distribution capabilities needed to reach more homeowners," said Graham Fleming. This strategic approach has enabled Finance of America to maintain its position as a leader in the industry, with volumes increasing by 17% year-over-year through September.
