Senior homeowners are losing another major source for reverse mortgages.  Onity Group, the parent company of PHH and Liberty Reverse Mortgage, recently announced that it will stop originating reverse mortgages and will sell its reverse mortgage servicing portfolio. Liberty has long been one of the largest lenders in the space, with 12 active branches and 138 sponsored loan officers based on NMLS, so this marks a significant shift in the industry.

Unfortunately, this isn’t new.  Large financial companies often change direction, especially when regulations or internal priorities shift.  Over the years, we’ve seen several major lenders build substantial reverse mortgage divisions only to later sell them off or close them entirely.  We wrote about a similar change years ago when Wells Fargo exited the business.  While Liberty wasn’t the single largest lender in the country, it remained firmly in the top five, and its exit follows a familiar pattern among the biggest players.

PHH will also sell servicing rights on roughly 40,000 existing reverse mortgages.  For borrowers, this simply means your loan may soon be transferred to a new servicer.

Current Liberty Reverse Mortgage Holder?  There’s no change to your FHA insurance, your loan terms, or any protections under HUD guidelines.  Based on the details released so far, PHH will continue servicing the loans for a transition period under agreement with the buyer, so most borrowers won’t notice anything immediately.  You’ll receive advance notice before any transfer, and the change should be smooth.

Onity has said it plans to redirect resources toward other loan types.  We’ve heard similar explanations from other large institutions.  Reverse mortgages are highly regulated and service-intensive, and many large lenders decide that the costs and compliance requirements don’t fit their long-term business model.  That’s why we’ve watched several big names grow to the top of the industry, only to eventually step away.

Where to Get a Reverse Mortgage in 2025?

There are many active lenders in the reverse mortgage space today — including both banks and non-bank lenders — as well as brokers who can help prospective borrowers navigate the different loan options and available interest rates.

At All Reverse Mortgage, we’ve always taken a different approach.  For nearly two decades, we’ve focused solely on reverse mortgages, delivering consistent service, competitive rates, and clear communication.  Our longstanding A+ rating with the Better Business Bureau and near-five-star customer history reflect that commitment.  These are ratings you earn, not ones you buy or manufacture like many “review sites” attempt to do.

Curious How Much Equity You Can Unlock?  Get a custom reverse mortgage quote from All Reverse Mortgage—America’s #1 with a 4.99/5-star rating!  Call (800) 565-1722 or click here for your free quote —simple, trusted, 100% secure!