Reverse mortgage lenders log Q2 profit in the midst of home, AI Push
Housing‘s Reverse MortGage Daily has assessed the income results of Q2 2025 of Financing of America (FOA); Ellington FinancialThe parent company of Longbridge Financial; And Unity groupThe parent of PHH MortGage Corp. And Liberty Reverse Mortgage.
FOA reported a profit of $ 80 million in the second quarter – flat compared to the first quarter, but a sharp turning of the loss of $ 5 million in the same period last year. CEO Graham Fleming attributed the performance to “consistent implementation, rising profitability and the growing relevance of Equity solutions for retirement.”
FOA’s origin volume was at the top of the high -end of its quarterly guidance and achieved $ 602 million from April to June – an increase of 7% compared to the previous quarter and 35% higher year after year.
Home Equity in the spotlight
Longbridge achieved a profit of $ 10.7 million in Q2 2025, which reversed a loss of $ 1 million in the previous quarter. The origination volume rose to $ 427 million, an increase of $ 338.4 million, with its wholesaler and correspondent channels accounting for 72% of production versus 28% from the retail trade.
“Longbridge generated a robust $ 0.13 per ADE share in the second quarter (adapted distributable profit), and the ADE contributions must be further supported by the recent launch of his Heloc for Seniors program,” said Laurence Penn, CEO and President of Ellington, in a statement.
FOA President Kristen Sieffert called Home MortGage Disclosure Act (HMDA) data showing that the volume of subordinate-Lien loans for senior borrows rose to $ 49 billion in 2024-one increase of 20% after year.
“Finance of America meets this question through our second product from Homesafe, while there is a considerable chance while we continue to expand the reach through digital integration,” she said.
With unit, profitability was slimmer. The company maintained “marginal profitability” in its inverted mortgage unit, from $ 166 million from April to June – against $ 176 million in the first quarter and $ 184 million in Q2 2024.
“Higher rates for a longer period have limited the amount of the benefit that a reverse borrower can realize on a new loan,” said Sean O’Neil, Chief Financial Officer of Onity, during the company’s profit call in the second quarter. “Reverse experienced lower volumes on lower margins, but was still able to deliver a profitable quarter.”
Tech plays a greater role
Reverse mortgage lenders also lean heavily on technology to stimulate efficiency and scale.
FOA, who rolled out the first digital pre-qualifying tool of the industry in June, is planning to launch an AI-driven virtual call-agent in Q3 2025.
“AI plays a crucial role here, speeds up the development, stimulating operational efficiency and improving analyzes and document management,” Sieffert told analysts.
Onity pursues a similar path. CEO Glen Messina said that the company has used AI-driven data extraction in more than 190 processes, which carries out the work of around 400 employees and saves around 57,000 hours of manual labor every month.
