Firm announces strategic sale of title insurance business to boost offerings
Finance of America Companies (FOA) has agreed to sell the title insurance businesses of Incenter, its indirect subsidiary, to mortgage insurer Essent Group.
According to an 8-K filing, Essent Group will buy issued and outstanding shares of Agents National Title Holding Company (ANTIC) and the issued and outstanding membership interest of Boston National Holding (BNT) for $100 million.
FOA interim CEO Graham Fleming issued a statement regarding the move, emphasizing FOA’s long-term growth initiatives that are in line with the company’s vision to expand its reach and impact.
“FOA’s strategic direction and long-term growth initiatives are centered on providing an innovative suite of solutions to help Americans achieve their retirement goals through the use of their home equity,” Fleming said. “This transformation has included the decision to discontinue the operations of our forward mortgage originations segment and expand on this vision through our announcement to acquire the assets of AAG. Today’s transaction is part of our continued execution of this strategy which is supported by some of the industry’s most powerful macro themes.”
FOA exited the retail and wholesale channels in 2022, closing its financially troubled mortgage origination unit, Finance of America Mortgage. In a statement released in October, Fleming said the discontinuation would enable FOA to focus on its specialty finance and service business. Two months after the announcement, the firm struck a deal to acquire FHA reverse lender American Advisors Group (AAG) for $10 million in cash and certain FOA shares.
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