Financial Performance - Net income attributable to common stockholders was $21 million, with diluted EPS of $2.50 and ROE of 19%[6] - Adjusted pre-tax income was $25 million, resulting in an annualized adjusted ROE of 22%[6] - Net income attributable to common stockholders for Q1'25 was $21 million, a recovery from a loss of $29 million in Q4'24, but down from $30 million in Q1'24[20] - Adjusted pre-tax income for Q1'25 was $25 million, compared to $11 million in Q4'24 and $15 million in Q1'24[20] - Total revenue for Q1'25 increased to $249.8 million, up from $224.8 million in Q4'24 and $239.1 million in Q1'24[23] - GAAP return on equity (ROE) for Q1'25 was 19%, recovering from a negative 25% in Q4'24, but down from 29% in Q1'24[21] - Basic earnings per share (EPS) for Q1'25 was $2.68, compared to a loss of $3.63 in Q4'24 and earnings of $3.91 in Q1'24[23] Asset and Liability Management - Total assets decreased to $16,259.3 million in Q1'25 from $16,435.4 million in Q4'24, while total liabilities also decreased to $15,749.2 million[22] - The company’s cash and cash equivalents decreased to $178 million in Q1'25 from $184.8 million in Q4'24[22] Mortgage Servicing Rights and Originations - Total servicing additions reached $17 billion, with average servicing UPB of $305 billion, up $13 billion year-over-year[6] - Funded recapture volume increased 2.7 times year-over-year, with a refinance recapture rate of 1.6 times the industry average[7] - Originations volume was $7 billion, up 53% year-over-year, exceeding the industry growth rate of 8%[7] - MSR additions (bulk purchases and originations) totaled $12 billion, more than doubling year-over-year[7] - Mortgage servicing rights (MSRs) at fair value rose to $2,547.4 million in Q1'25 from $2,466.3 million in Q4'24 and $2,374.7 million in Q1'24[22] Guidance and Future Plans - The company confirmed previous guidance for 2025 adjusted ROE in the range of 16% - 18%[6] - The company plans to release some or all of the $180 million deferred tax valuation allowance by year-end 2025[6] Legal and Regulatory Matters - The company reported a significant legal and regulatory settlement expense of $14 million in Q1'25, compared to $2 million in Q4'24 and $2 million in Q1'24[20]

WEST PALM BEACH, Fla., April 30, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced its first quarter 2025 results and provided a business update. First Quarter 2025: Net income attributable to common stockholders of $21 million; diluted EPS of $2.50; ROE of 19%Adjusted pre-tax income* of $25 million, resulting in annualized adjusted ROE* of 22%Book value per share improved to $58 as of March 31, 2025, up $2.15 year-over-year$17 billion in total servicing addit ...

WEST PALM BEACH, Fla., April 23, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that it will hold a conference call on Wednesday, April 30, 2025 at 8:30 a.m. (ET) to review the Company’s first quarter 2025 operating results and provide a business update. All interested parties are welcome to participate. You can access the conference call by dialing (800) 579-2543 or (785) 424-1789 approximately 10 minutes prior to the call; please reference the conference ...

WEST PALM BEACH, Fla., April 22, 2025 (GLOBE NEWSWIRE) -- PHH Mortgage (“PHH” or the “Company”), a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, today announced that the Company has launched a proprietary reverse mortgage product known as EquityIQ®. The product will be available through the Company’s wholesale network and marketed under PHH’s reverse mortgage product brand, Liberty Reverse Mortgage. “For more than two decades, we've leveraged our revers ...

Group 1 - Onity Group (NYSE: ONIT) is currently trading at a 50% discount to its book value, which is significant in the context of its financial health [1] - The discount is attributed to several factors, including a historically bloated balance sheet, near-term debt maturities, unimpressive bottom-line performance, and high capital-distractive acquisitions [1]

Onity Group (ONIT) shares soared 6.5% in the last trading session to close at $28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks.Onity Group witnessed a strong price increase following the news that the company is reportedly considering options to sell its mortgage servicing rights division –  a capital restructuring effort to accelerate capital allocation. Also, the company is expected to wi ...

Company Overview - Onity Group (ONIT) shares increased by 12.2% to close at $34.49, following a preliminary update on financial performance for Q1 2025, contrasting with a 7.4% loss over the past four weeks [1] - The company reported a significant rise in originations volume in Q1 2025 compared to the previous year, attributed to improved channels and a new closed-end second originations product launched in February 2025 [2] Financial Performance - Onity Group is expected to report quarterly earnings of $1.90 per share, reflecting a year-over-year increase of 9.2%, with revenues projected at $259.96 million, up 8.7% from the same quarter last year [3] - The consensus EPS estimate for Onity has been revised down by 20.3% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Onity operates within the Zacks Financial - Mortgage & Related Services industry, where another company, Essent Group (ESNT), has seen a 0.8% increase in its stock price, closing at $55.85, but has returned -0.8% over the past month [4] - Essent Group's consensus EPS estimate has decreased by 5.3% over the past month to $1.66, representing a decline of 2.4% from the previous year [5]

Core Viewpoint - Onity Group Inc. will present at the Sidoti March Virtual Investor Conference on March 19-20, 2025, with key executives participating in the event [1][2]. Company Overview - Onity Group Inc. is a leading non-bank financial services company specializing in mortgage servicing and originations through its primary brands, PHH Mortgage and Liberty Reverse Mortgage [4]. - PHH Mortgage is one of the largest servicers in the United States, offering a variety of servicing and lending programs [4]. - Liberty Reverse Mortgage is among the nation's largest reverse mortgage lenders, focusing on loans that assist customers with personal and financial needs [4]. - The company is headquartered in West Palm Beach, Florida, and has operations in the U.S., U.S. Virgin Islands, India, and the Philippines, serving customers since 1988 [4]. Event Details - The presentation at the conference will start at 3:15 p.m. Eastern Time on March 20, 2025, and will be accessible live [2]. - Onity will also conduct virtual one-on-one meetings with investors on the same day, with free registration available [2][3]. - An investor presentation will be made available on the company's shareholder relations page prior to the event [3].

Core Insights - PHH Mortgage has achieved Fannie Mae's 2024 Servicer Total Achievement and Rewards™ (STAR™) Performer recognition in the General Servicing category for the fourth consecutive year [1][2] Company Performance - PHH serviced or subserviced approximately 1.4 million loans with a total unpaid principal balance exceeding $300 billion as of December 31, 2024 [3] - The company manages loans on behalf of around 4,000 investors and 125 subservicing clients [3] Industry Position - PHH Mortgage is recognized as one of the largest non-bank mortgage servicers in the United States, providing a variety of servicing and lending programs [4] - The company has built a servicing platform that emphasizes operational performance, customer focus, and innovative technology solutions [2]

Servicing and Subservicing Portfolio - As of December 31, 2024, the servicing and subservicing portfolio consisted of approximately 1.4 million loans with an unpaid principal balance (UPB) of $301.7 billion[24]. - As of December 31, 2024, Rithm accounted for $41.2 billion of UPB, representing 14% of PHH's total servicing and subservicing portfolio, and approximately 63% of all delinquent loans serviced by Onity[55]. - The servicing business includes the collection of principal and interest payments, management of delinquent loans, and the administration of escrow accounts[25]. - The five largest concentrations of properties serviced are in California, Texas, Florida, New Jersey, and New York, comprising 39% of the loans serviced, with California alone accounting for 15%[118]. - The five largest concentrations of properties securing residential loans are located in California, Texas, Florida, New Jersey, and New York, comprising 39% of the total loans serviced as of December 31, 2024[118]. Originations Business - In 2024, the Originations business generated total volume additions of $85.6 billion in UPB[33]. - The Originations segment primarily generates revenue from gains on loan sales, including conventional and government-insured loans[31]. Competition and Market Conditions - The company faces intense competition in the financial services market, particularly from larger banks with lower costs of capital[47]. - The company competes based on price, operating performance, service quality, and customer satisfaction in the servicing business[48]. - Market conditions, including interest rates, may impact investor demand for MSRs, potentially leading to a loss of subservicing relationships[117]. Employee Engagement and Culture - The company had approximately 4,300 employees as of December 31, 2024, with around 1,000 in the U.S. and USVI, and 3,300 in India and the Philippines[64]. - Employee engagement levels were reported at 85% favorable, indicating strong workforce morale and commitment[70]. - The company emphasizes a non-discriminatory culture and equal opportunity, with over half of its workforce participating in employee-led resource groups[75]. Risk Management and Compliance - Onity's risk management framework includes policies to identify, assess, monitor, and manage strategic, market, credit, liquidity, and operational risks[88]. - The Chief Risk and Compliance Officer oversees global risk management and compliance programs, reporting to the Board of Directors[89]. - Onity's operational risk management includes a "Three Lines of Defense" model to manage risks and controls effectively[99]. - The company regularly evaluates capital structure options to support investment objectives and manage liquidity risk[96]. - Liquidity risk is critical for operations, necessitating adequate levels of excess liquidity to fund business activities during normal and stressed economic conditions[93]. - The company actively manages its sources and uses of funds to address liquidity risk and maintain contingency funding capacities[97]. - The company has established internal processes to anticipate future cash needs and continuously monitor the availability of funds[94]. - The company monitors Rithm's payment performance, liquidity, and capital regularly due to its concentration in the portfolio[113]. - Counterparty credit risk exists with third-party originators, and the company mitigates this risk through monitoring and quality control reviews[114]. Community Engagement and Charitable Contributions - Onity hosted 42 borrower outreach events across 32 states in partnership with nine HUD certified housing counseling agencies in 2024[81]. - Since 2012, Onity has contributed more than $28 million to local and national nonprofit organizations to support distressed communities and homeowners[82]. - In 2024, Onity's charitable events included raising funds for autism and cancer research and supporting local food banks through food drives[83]. - The company has contributed nearly $7 million to nonprofit organizations since the COVID pandemic[82]. Servicing Excellence and Recognition - The company has received multiple recognitions for servicing excellence, including Fannie Mae's STAR performer recognition for the fourth consecutive year[48]. - PHH's servicer ratings were upgraded by Moody's on August 10, 2023, with residential prime, subprime, special servicer, and second lien servicer quality assessments moving from SQ3 to SQ3+[50]. - Fitch affirmed PHH's residential servicer ratings and revised the outlook from Positive to Stable for Prime and Subprime products on February 13, 2024[52]. Financial Transactions and Agreements - Onity sold its 15% equity interest in MAV Canopy to Oaktree in November 2024, and amended the Subservicing Agreement to make PHH the exclusive subservicer for an initial term of five years[61]. - As of December 31, 2024, PHH subserviced a total of $41.2 billion UPB on behalf of MAV under the Subservicing Agreement, with $21.5 billion of MSRs previously sold by PHH to MAV[61]. - Onity issued $285.0 million of senior secured notes due 2027 to Oaktree in 2021, which were prepaid in November 2024 as part of corporate debt refinancing[62].