Onity (ONIT) received regulatory approval for the sale of its reverse mortgage servicing portfolio and certain reverse originations assets to Finance of America Reverse, the company said Tuesday.

The net proceeds from the transaction are expected to be $70 million to $80 million, the company said.

The approval came after it revised the transaction based on discussions with Ginnie Mae, with Onity agreeing to sell reverse mortgage servicing rights made up of around 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.1 billion as of March 31, the company said.

Onity will become the subservicer for the reverse mortgage servicing rights sold to FAR under a three-year subservicing agreement, the company said.

At closing, FAR will also acquire Onity's pipeline of reverse mortgage loans, and Onity will discontinue originating reverse mortgage loans, the company said.

The company also authorized a share repurchase program for up to $20 million through June 2027, the company said.