The Blackstone Controlled mortgage servicer, Finance of America (FOA), is going Public and making its appearance on the NewYork Stock Exchange. This debut will take place before the IPO window shuts.
While selling its stocks, the company is estimated to be valued at $1.9 billion. Institutional investors have promised a $250 million private financing in the business to align with the IPO. Blackstone Group would own the lending institution to the tune of 70%.
In 2020, FOA, like almost all mortgage lenders, saw record income and issuances. The credit activities rose by 70% to $32.63 billion in 2020, up from $19.16 billion in 2019. Pre-tax revenue boomed 541 per cent to $500 million, in contrast to $78 million in 2019. Overall revenue increased 101 per cent to $1.80 billion, opposed to $894 million in 2019. However, the current atmosphere is challenging, leading to a dwindle of the lender's margin as mortgage prices increase into the 3% range and recapitalizations drop. The shares of Finance of America will start trading on Monday, with the subsequent completion of its integration with the blank-check corporation, Replay Acquisition Corp.
Originated in 2013, Finance of America Companies offers a wide range of credit products and services to satisfy the monetary needs of consumers at any stage of their lives. They vow to run their company with a personal touch, providing a greater consumer experience on everything from housing loans to reverse financing to industrial loans and creditor facilities. It has four segments, i.e., incentre, commercial organisations, reverse organisations, and the mortgage organisations.
To date, Finance of America has appointed 5500 employees with more than 300 offices worldwide. FOA was the 26th largest mortgage servicer by size in 2020, as per Inside Mortgage Finance. The business is based in Irving, Texas, and is a holding company of The Blackstone Group, a leading international investment company. It trades on New York Stock Exchange with a market capitalization of US$ 357.57 million under the symbol FOA.
CEO Patricia Cook expressed her delight in a statement on the next phase of the company's development as a publicly traded firm. She is looking forward to exploring many opportunities with her talented and passionate team members.
Since 2017, the firm claims that its group of companies has raised over $65 billion in loans. Property services, fixed-income savings, reverse mortgages, private equity loans, and traditional rentals are among its offerings.
Within some years, Blackstone Group added to the Finance of America corporation with Skyline Home Loans, Pinnacle Capital Mortgage, and Gateway Funding purchases. Moreover, the company unveiled a home renovation segment, two-weeks earlier, with the $45 million purchase of Renovate America's Benji sector of industry. Its reverse mortgage division also introduced a new programme for homeowners approaching retirement age. After broker-based United Wholesale Mortgage started trading in late January, it is the second successful credit union to go public with a SPAC in 2021.
While Finance of America took advantage of the historic mortgage IPO window until its closure, it's uncertain if others will. Both AmeriHome and Caliber Home Loans announced plans to go public in the winter, but they were postponed indefinitely.