Interim CEO Graham Fleming said the discontinuation “will allow FOA to optimize its resources and prioritize businesses that have a distinct market opportunity and greater growth potential,” including reverse mortgage, home improvement, commercial, and lender service segments.
“Our decision was made with careful consideration, and we understand the impact this action will have on many of our employees and their families,” he noted.
While he did not disclose how many jobs would be affected by the closure, Fleming said they are providing support and resources to assist the departing employees and are actively working to facilitate the transition of many of these employees to roles at other mortgage lenders.
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“In addition, the move will accelerate the company’s ability to partner with large mortgage lenders and other financial services companies to offer FOA’s SF&S (specialty finance and services) solutions on their platforms,” Fleming said.