Finance of America was officially released Monday morning as the stock price rose in early trading alongside the broader market.
Since FOA went public through a merger with a special purpose vehicle, trading began with the opening of the market by listing its merger partner Replay Acquisition Corp. was acquired. All other mortgage lenders that went public since the middle of last year had to be reduced to the expected size and price.
The mortgage industry has increased this option of going public through a SPAC. Companies like United Wholesale Mortgage and Doma have used this method over the past few months.
"We are excited to move into our next chapter of growth as a publicly traded company and capitalize on the many opportunities ahead," said Patricia Cook, CEO of Finance of America, in an April 1 press release. "Our value proposition is truly unique given our proven ability to innovate and deliver the complementary financial solutions that consumers want and investors value."
Finance of America's pre-IPO owners – including company chairman Brian Libman and Blackstone Tactical Opportunities – collectively own roughly 80% of the now public corporation.
On the last day of trading on April 1st, Replay closed at $ 9.55 per share. Most of the weeks a SPAC spent falling from a closing price of $ 10.19 per share on March 18.
While FOA opened at $ 9.50 per share, investors pounced on the stock, hitting a high of $ 9.98 in its first half hour of trading. At 10:45 am, FOA was trading at $ 9.85 per share, up 3.99%, and trading in volume of over 70,000 shares.
On the last day of Replay, 241,200 shares were traded. The most traded day last year was March 3, when over 2.4 million shares changed hands.
All of the non-bank mortgage lenders that went public in recent months were also up in early trading on April 5, led by the 4.69% jump in credit. Guild Holdings was up 1.91%; Home Point Capital rose 1.34%; UWM Holdings rose 0.39%; and Rocket Cos., plus 0.05%.
But the other publicly traded non-banks were a mixed bag. While Impac was up 6.03%, Mr. Cooper were among the lower ones, down 0.11%; Ocwen, 0.42%; Redwood Trust Down 0.51%; New Residential Down 0.8%; and PennyMac Financial Services 3.3%.
Last year, Finance of America raised $ 32.6 billion (including forward and reverse mortgages), up from $ 19.2 billion in 2019. In the fourth quarter alone, the company produced $ 9.77 billion. After $ 9.17 billion in the third quarter and $ 6 billion in the fourth quarter of 2019.
The company posted net income of $ 498 million in 2020, up from $ 77 million in 2019.