V.E provides SPO on Finance of America Reverse’s Social Bond Framework
V.E provided a Second Party Opinion (SPO) on the sustainability credentials and management of Finance of America Reverse’s (FAR) so-called “Social Bond Framework”.
The USD $571.4 million Bond, closed on February 2021 will refinance its portfolio of Reverse Mortgage (RM) loans. The Eligible Loans are regulated by the US Home and Urban Development’s (HUD) Home Equity Conversion mortgage (HECM) programme. The RM allows homeowners to convert their home equity into cash. HECM programme is focused on elderly populations (over 62 years old).
We assigned a Second Party Opinion (SPO) on the sustainability credentials and management of the issuance intended by FAR. V.E is of the opinion that this Bond is partially aligned with the four core components of the Social Bond Principles (2020) and has a limited contribution to sustainability. In this context, V.E. values the additional measures implemented by FAR to limit the risks that can arise from Reverse Mortgage (RM) loans.
V.E has produced more than 300 second-party opinions on sustainable financing operations in Europe, Africa, Americas and Asia.VE is a leading SPO provider and a Climate Bonds Standard Approved Verifier.
Finance of America Reverse LLC is part of Finance of America Companies. FAR is a lender of reverse mortgages in the United States. The Company has headquarters in Tulsa, Oklahoma.
To consult our full opinion, please see the SPO below.
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