Plane motor failure failsafe

Will PX4 point the plane at the home position in the event of a motor failure and attempt the pitch down accordingly?

It depends what mode you’re in. If you’re in altitude/position control or an AUTO mode TECS will detect underspeed which switches FW_T_SPDWEIGHT to 2.0 and then the plane will pitch down to maintain airspeed ignoring altitude errors. There’s also engine failure detection, but I haven’t personally tried it.
CBRK_ENGINEFAIL here - https://pixhawk.org/firmware/parameters#circuit_breaker

That’s awesome. I assume it will pitch down in the direction your flying in so the operators has to navigate it to home position.