American Advisors Group to sunset Finance of America

Finance of America Cos. reported a narrowed loss in the first quarter as it completed the integration of American Advisors Group into its reverse-mortgage business. The Plano, Texas-based company saw a net loss of $20.3 million, with changes in fair value gains impacting the bottom line.

After focusing on home-equity conversion mortgages and other reverse products, Finance of America funded $423 million in production between January and March. The retirement solutions lending unit posted a $4 million pre-tax loss, an improvement from previous quarters.

The company’s president, Kristen Sieffert, highlighted the completion of the integration process as a key milestone, paving the way for a modernized go-to-market strategy. As part of this strategy, Finance of America announced a rebranding effort, consolidating American Advisors Group and Finance of America Reverse under the single brand name ‘Finance of America.’

While American Advisors Group previously led the HECM market, Finance of America Reverse surpassed it in wholesale. The company expects streamlined operations to drive a 10% increase in originations in the second quarter, with proprietary products playing a significant role.

Despite facing challenges such as high-yield debt and the threat of delisting from the NYSE, Finance of America remains optimistic about its future prospects. The company is actively exploring options to address its debt maturity and is engaged in discussions to comply with NYSE listing requirements.