Finance of America to Acquire Assets of Reverse Mortgage Lender AAG
December 07 2022 - 7:00AM
Business Wire
Strategic acquisition marks expansion into
direct-to-consumer retail channel, underscores commitment to
expanding access to home equity solutions for America’s
retirees
Finance of America Companies Inc. (NYSE: FOA) (“FOA” or the
“Company”), a leading specialty finance and solutions platform,
today announced it will acquire assets of American Advisors Group
(“AAG”), a leading direct-to-consumer reverse mortgage lender, in
exchange for a combination of cash and equity. The transaction
underscores FOA’s commitment to invest in businesses that have
strong growth potential with structural and demographic
tailwinds.
Commenting on bringing AAG’s direct-to-consumer retail channel
under the FOA umbrella, Graham A. Fleming, FOA President and
Interim Chief Executive Officer, said, “We believe home equity will
be an increasingly important asset for Americans to consider in
order to supplement their incomes, especially in retirement. We are
confident that our expansion into this direct-to-consumer retail
channel will position us to further educate, grow and service this
market while driving enhanced value and opportunities for our
customers, employees, partners and investors.”
Upon completion of the deal, which is expected to be accretive
to both Tangible Book Value and Earnings Per Share, FOA’s
subsidiary, Finance of America Reverse LLC, will operate a separate
direct-to-consumer retail channel under the brand name AAG, whose
ads currently reach over 10 million consumers annually in various
ways, including the use of celebrity spokesperson Tom Selleck. The
transaction is expected to close in the first half of 2023, subject
to customary closing conditions and regulatory approvals.
In support of this transaction, existing stockholders of the
Company, including entities affiliated with Brian L. Libman, the
Company’s chairman and founder, have committed to invest an
additional $30 million of capital into the Company through a
private placement of FOA’s common stock. The investment is
conditioned upon customary closing conditions, including the
closing of the AAG transaction.
Kristen Sieffert, President of Finance of America Reverse, said,
“This is an incredibly exciting day for our organizations and
ultimately those we serve. By complementing FAR’s thought
leadership and innovation with AAG’s unmatched investments in
consumer awareness, we are strengthening a movement to change
society’s retirement trajectory for the better and bringing FOA
closer to its goal of helping more Americans thrive.”
Additional details of the transaction can be found in the
Current Report on Form 8-K that has been concurrently filed by FOA
with the SEC.
About Finance of America
Finance of America (NYSE: FOA) is a specialty finance consumer
lending platform that provides pathways to achieve greater
financial freedom through home equity. Through FOA’s subsidiaries,
customers have access to a diverse range of flexible, end-to-end
home financing and home equity solutions including home improvement
loans and reverse mortgages as well as loans to residential real
estate investors distributed across retail, third-party network,
and digital channels. In addition, FOA’s companies offer
complementary lending services to enhance the customer experience,
as well as capital markets and portfolio management capabilities to
optimize distribution to investors. FOA is headquartered in Plano,
TX. For more information, please visit
www.financeofamerica.com.
Forward Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not historical facts or
statements of current conditions, but instead represent only
management’s beliefs regarding future events, many of which, by
their nature, are inherently uncertain and outside of the Company’s
control. These statements are subject to risks, uncertainties,
assumptions and other important factors, including those set forth
in the section entitled “Risk Factors” included in our Annual
Report on Form 10-K for the year ended December 31, 2021, filed
with the Securities and Exchange Commission (the “SEC”) on March
15, 2022, as such factors may be amended and updated from time to
time in the Company’s subsequent periodic filings with the SEC,
which are accessible on the SEC’s website at www.sec.gov. Readers
are cautioned not to put undue reliance on such forward-looking
statements because actual results may vary materially from those
expressed or implied. The Company assumes no obligation to, and
expressly disclaims any obligation to, update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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Finance of America Investor Relations: ir@financeofamerica.com
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