Multichannel lender Finance of America (FoA) plans to sell its retail mortgage division and shut down its forward wholesale channel, HousingWire reported.

Citing multiple sources including former top executives and business partners, the article said FoA signed a letter of intent to sell its forward mortgage retail business to Guaranteed Rate, a competitor, but negotiations “are still in progress and remain fluid.”  

FoA originated $6 billion through the retail mortgage channel from January to June, down 50.7% year-over-year, according to Inside Mortgage Finance. 

The wholesale channel is expected to shut down by the end of the year, the article said. Sources told HousingWire that broker partners haven’t yet been told.

Documents filed with the Securities and Exchange Commission indicated that from January to June the company originated $3 billion through the wholesale division, according to the article.

If the deal goes through, FoA would focus on other lines of business like reverse mortgages, commercial lending and home improvement. 

Incenter Mortgage Advisors, which provides advisory services for MSR and whole loan trading, would also remain part of FoA, HousingWire reported. 

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