FOA reports $80M profit, buys out Blackstone’s equity stake

Finance of America (FOA) continued its recent streak of growth in the second quarter of 2025, funding $602 million in mortgages and producing $80 million in net income.

FOA, one of the nation’s leading reverse mortgage lenders, exceeded the top end of its stated quarterly guidance for investors as the $602 million in volume from April through June was up 7% from the prior quarter and 35% higher than the same period last year.

The company’s $80 million profit was flat compared to the first quarter but marked a significant turnaround from the $5 million loss it sustained in Q2 2024.

“Our second-quarter results reflect consistent execution, rising profitability, and the growing relevance of home equity solutions for retirement,” CEO Graham Fleming said in a statement prior to FOA’s earnings call on Tuesday.

“We continue to see encouraging signals from our new brand campaign and digital initiatives, which are helping to expand our reach and deepen engagement with the next generation of borrowers. As demand builds among a rapidly growing demographic, we believe Finance of America will continue to lead this market and deliver long-term value.”

Farewell to Selleck

In April, FOA announced the launch of its new marketing campaign, “A Better Way with FOA.” The move came shortly after the lender enlisted the services of David&Goliath as its creative partner.

On the heels of the new advertising push, FOA chief marketing officer Chris Moschner told HousingWire’s Reverse Mortgage Daily (RMD) that the campaign was designed to complement but not replace its long-running and well-known campaign with actor Tom Selleck.

Although Selleck once accounted for all of the company’s marketing presence, Moschner said earlier this year that had shifted to about 50% and would be maintained for at least the next few months.

“As usual, we’re a data-led company,” Moschner said. “We’ll let the market tell us where to go from there. If it looks like that’s working, potentially that goes longer. If it looks like we need to make any adjustments, we will adjust. We’re not going to be ignorant of what the data is telling us.”

But the partnership with Selleck has officially ended, according to FOA President Kristen Sieffert. She told analysts during Tuesday’s earnings call that the company had shifted entirely to the “Better Way” campaign as of June 30.

“Early indicators are promising,” Sieffert said. “In just 90 days, TV leads signal growing appeal among younger demographics and in markets with higher home values. At the same time, our digital acquisition strategy is gaining traction with a 10% increase in leads from digital channels.”

Tech initiatives to meet demand

Sieffert went on to discuss FOA’s strategic shifts in technology. In June, it launched what Sieffert termed “the industry’s first digital prequalification experience” that’s designed to improve borrower engagement and satisfaction.

In Q3 2025, the company is set to introduce an artificial intelligence-powered virtual call agent. The tool aims to offer “speed and simplicity” to customers by offering 24/7 support, Sieffert said.

“AI is playing a pivotal role here, accelerating development, boosting operational efficiency, and improving analytics and document management,” she told analysts.

FOA plans to expand its digital platform to a wider audience in the third quarter, Sieffert added. She cited Home Mortgage Disclosure Act (HMDA) data showing that the volume of subordinate-lien loans for senior borrowers rose to $49 billion in 2024 — up 20% year over year.

“Finance of America is meeting this demand through our HomeSafe Second product, while a significant opportunity remains ahead as we continue to expand its reach through digital integration,” she said. “Overall, Q2 marked continued progress toward our long-term vision to become the most trusted brand for homeowners entering the next chapter of life.”

Buyout of Blackstone

FOA also reported this week that it has entered into a definitive agreement to repurchase the equity stake of Blackstone. It repaid the entirety of Blackstone’s working capital facility and it announced a new convertible debt facility with several of its “long-term supporters,” according to a press release.

Under Blackstone’s majority ownership, FOA became a publicly traded company in 2021 with an initial valuation of $1.9 billion. The repurchase is expected to close in the fourth quarter of 2025, with more information set to be issued through filings with the Securities and Exchange Commission.  

“We appreciate the strong partnership with Finance of America and their management team, which has spanned over ten years,” Christopher James, global head of Blackstone’s tactical opportunities group, said in a statement. “With this transaction, we will conclude our ownership role, but we look forward to continuing to work together in new and impactful ways in the future.”

During Tuesday’s earnings call, Fleming offered more details on the transaction in response to a question from UBS analyst Douglas Harter.

Fleming said that FOA retired $85 million in working capital with an interest rate of 15%, replacing it with $40 million of exchangeable notes at 0% interest and $20 million in working capital at 10% interest.

“So we’re going to see about a $10 million annualized reduction in our interest expense just from that transaction,” he said.