Brand launch marks another step in the Company’s multi-year transformationWEST PALM BEACH, Fla., March 23, 2026 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that its mortgage subsidiary has officially started operating under a new name, Onity Mortgage Corporation (“Onity Mortgage”), replacing its former name, PHH Mortgage Corporation (“PHH Mortgage”). Glen A. Messina, Chair, President and CEO of Onity Group, said, “Today marks another important milestone in ou ...

Core Insights - PHH Mortgage has been recognized as a STAR Performer by Fannie Mae for the fifth consecutive year, highlighting its excellence in mortgage servicing and operational performance [1][2]. Company Performance - As of December 31, 2025, PHH serviced or subserviced approximately 1.4 million loans with a total unpaid principal balance (UPB) of $328 billion, serving over 3,000 investors and more than 100 subservicing clients [3]. - In 2025, the company expanded its total servicing UPB by 9% year-over-year and achieved a 15% increase in owned mortgage servicing rights (MSR) UPB [3]. Recognition and Metrics - The STAR Performer recognition is awarded based on metrics such as General Servicing, Solution Delivery, and Timeline Management, comparing each servicer's performance against similar Fannie Mae loans [2]. - The company emphasizes a customer-first mindset and the integration of innovative technologies to maintain top-tier performance in the mortgage servicing industry [2]. Company Overview - Onity Group Inc. is a leading non-bank financial services company, with PHH Mortgage being one of the largest servicers in the country, providing a variety of servicing and lending programs [4]. - The company is headquartered in West Palm Beach, Florida, and has been operational since 1988, with a presence in the U.S., U.S. Virgin Islands, India, and the Philippines [4]. Upcoming Changes - Onity Group plans to rebrand its subsidiary, PHH Mortgage Corporation, to Onity Mortgage Corporation effective March 23, 2026 [5].

Core Viewpoint - Onity Group Inc. is set to rebrand its subsidiary PHH Mortgage Corporation to Onity Mortgage Corporation, effective March 23, 2026, as part of a multi-year transformation to strengthen its brand in the mortgage industry [1][2]. Group 1: Rebranding Details - The rebranding aims to expand and strengthen the Onity brand across the mortgage industry, reflecting the company's growth and transformation efforts [2]. - The new brand will utilize the existing Onity logo and visual identity, ensuring a consistent brand presence [3]. - Alongside the rebranding, Onity Mortgage will launch redesigned websites and enhanced communication programs for clients and consumers [3]. Group 2: Company Performance and Strategy - Onity is currently a top 10 non-bank mortgage servicer, servicing loans for 1.4 million consumers on behalf of over 3,000 investors and more than 100 subservicing clients [2]. - The company has reported record originations volume and strong recapture performance in 2025, alongside an increase in its total servicing portfolio [6]. - Onity has expanded its use of AI-enabled technologies to enhance productivity and service excellence, and has launched new products and services to create growth opportunities [6].

Core Viewpoint - Onity Group Inc. has appointed Aulene Wessel as Senior Vice President and Chief Accounting Officer, effective February 23, 2026, succeeding Francois Grunenwald [1][3]. Group 1: Leadership Changes - Aulene Wessel will oversee the controllership function, core accounting operations, internal controls, technical accounting, audits, and compliance with GAAP and other regulations [2]. - Sean O'Neil, the Chief Financial Officer, expressed confidence in Wessel's expertise in technical accounting and operational controllership, highlighting her collaborative leadership approach [3]. Group 2: Background of Aulene Wessel - Aulene Wessel previously served as Executive Vice President and Deputy Controller at Truist Bank and has held significant roles at SoFi Technologies and Silicon Valley Bank [4]. - Her career includes leadership positions at American Express and experience at Barclays in London and BDO in Cape Town [4]. - Wessel holds a Bachelor of Accounting degree from the University of Stellenbosch and a postgraduate degree in Accounting from the University of Natal, and she is a Chartered Global Management Accountant [4]. Group 3: Company Overview - Onity Group Inc. is a leading non-bank financial services company specializing in mortgage servicing and originations through its brands, PHH Mortgage and Liberty Reverse Mortgage [5]. - PHH Mortgage is one of the largest servicers in the U.S., while Liberty is a major reverse mortgage lender [5]. - The company is headquartered in West Palm Beach, Florida, and has been operational since 1988, with a presence in the U.S., U.S. Virgin Islands, India, and the Philippines [5].

Servicing and Subservicing Portfolio - As of December 31, 2025, the servicing and subservicing portfolio consisted of approximately 1.4 million loans with an unpaid principal balance (UPB) of $328.3 billion[30]. - Non-bank mortgage companies account for nearly 60% of loan servicing, 80% of subservicing, and 80% of loan originations as of the first nine months of 2025[50]. - As of December 31, 2025, Rithm accounted for $32.2 billion, or 10% of the UPB and 19% of the loan count in PHH's servicing portfolio, with servicing fees from Rithm amounting to $78.5 million, or 12% of total fees[60]. - Rithm is the largest subservicing client, accounting for $32.2 billion of UPB, representing 10% of total UPB and 19% of loan count as of December 31, 2025[115]. - The five largest concentrations of properties serviced are in California, Texas, Florida, New Jersey, and New York, comprising 38% of the loans serviced, with California alone accounting for 14%[117]. Financial Performance and Recognition - In 2025, the Originations business generated total volume additions of $84.8 billion in UPB[39]. - The company received Fannie Mae's Servicer Total Achievement and Rewards (STAR) performer recognition for the fifth consecutive year for the 2025 program year[54]. - The company achieved HUD's Tier 1 servicer ranking for the fifth consecutive year for the 2025 program year[54]. - S&P affirmed the Above Average ratings and Stable outlook for the company, citing experienced management and good servicing performance metrics[55]. - Fitch upgraded PHH's residential servicer ratings and affirmed a stable outlook for all products, reflecting the company's growth strategy and effective risk management[56]. - Moody's upgraded PHH's second lien servicer quality assessment from SQ3+ to SQ2-, driven by improvements in second lien roll rates, cure rates, and recidivism rates[58]. Risk Management - The company’s risk management framework aims to balance risk and return, with established policies to manage strategic, market, credit, liquidity, and operational risks[86]. - The company is exposed to liquidity risk through various activities, including originating and financing mortgage loans, and must maintain adequate levels of excess liquidity[91]. - The operational risk management framework includes a "Three Lines of Defense" model to ensure effective risk management and control[97]. - The company is subject to compliance risk, which is managed through an enterprise-wide compliance risk management program[103]. - The company regularly evaluates the financial position and creditworthiness of counterparties to manage counterparty credit risk[110]. Liquidity Management - Liquidity management includes maintaining excess liquidity to fund operations during normal and stressed market conditions[91]. - The company actively manages liquidity risk through various funding sources, including cash on hand and asset-based lending facilities[95]. - The company has established internal processes to anticipate future cash needs and evaluate stress scenarios for liquidity management[92]. - The company actively manages its sources and uses of funds to address liquidity risk, including maintaining contingency funding capacities[95]. - Early payment defaults are monitored, with limited exposure anticipated from this risk due to the quick sale of originated loans in the secondary market[106]. Community Engagement - The company hosted 41 borrower outreach events across 21 states in 2025, partnering with various HUD certified housing counseling agencies[79]. - Since 2012, PHH has contributed over $28 million to local and national nonprofit organizations to support distressed communities and homeowners[80]. Subservicing Agreements - PHH subserviced a total of $38.3 billion UPB on behalf of Oaktree's MAV under the Subservicing Agreement as of December 31, 2025[64]. - In 2025, Oaktree exercised its warrants, resulting in a cash payment of $3.5 million and the issuance of 462,762 shares of common stock, representing 5.4% of PHH's then outstanding common stock[66]. - The servicing transfer from Rithm is expected to begin in the first half of 2026, resulting in a reduction of servicing fees and associated liabilities[61]. - The transfer of $8.3 billion of UPB to Rithm's servicing platform is expected to begin in the first half of 2026, subject to necessary consents[115]. - Rithm exercised its right to terminate subservicing agreements effective January 31, 2026, with a transfer of $8.3 billion of UPB subject to necessary consents[115].

Core Insights - The company reported record earnings and significant growth in origination volume, with a 44% year-over-year increase in 2025, outperforming the industry average of 18% [2][6][4] - A partial release of a $120 million deferred tax valuation allowance positively impacted equity, increasing book value per share by more than $11 quarter-over-quarter [4][13] - Management anticipates stabilization of delinquencies by Q2 2026, following a rise due to FHA loan modification rule changes and a government shutdown [3][11] Financial Performance - Onity's fourth-quarter revenue increased by 25% year-over-year and 6% sequentially, with adjusted return on equity (ROE) at 7% for the quarter and 17% when adjusted for governmental actions [12][21] - The company experienced a $14 million incremental MSR runoff in Q4, attributed to higher delinquencies from FHA changes and a government shutdown [3][9] - Liquidity at year-end 2025 stood at $205 million, including $181 million in unrestricted cash [15] Strategic Initiatives - The company plans to focus on organic growth, technology investments, and simplification actions in 2026, including transitioning from the legacy Rithm subservicing relationship [17] - Management is evaluating opportunistic bulk acquisitions and M&A when favorable economic conditions arise [17] - The introduction of new products and expansion in both B2B and Consumer Direct channels contributed to record origination volume [6][7] Market Conditions - The FHA loan modification program changes and a six-week government shutdown led to an increase in the overall delinquency rate for FHA borrowers by approximately 80 basis points in Q4 [10][9] - Management expects the effective tax rate for 2026 to be between 28% and 30% due to certain permanent expense disallowances [21] - The anticipated restructuring and indemnification costs related to Rithm and Finance of America are expected to be between $19 million and $20 million [21]

Core Insights - Onity Group Inc. has demonstrated strong financial performance with an EPS of $14.24, significantly exceeding the estimated $2.60, and revenue of $290 million, slightly above the estimated $288.8 million [1][6] Financial Performance - The company reported a record net income and EPS for the full year and fourth quarter of 2025, reflecting profitable growth through a multi-year transformation, with a book value per share of $74 [2] - Onity has a P/E ratio of approximately 10.55, indicating investors are willing to pay $10.55 for every dollar of earnings, and a price-to-sales ratio of about 0.32, suggesting the market values the company's sales at 32% of its stock price [3] - The enterprise value to sales ratio is around 0.17, showing a relatively low valuation compared to its sales [3] Challenges - The enterprise value to operating cash flow ratio is negative at approximately -0.26, indicating potential concerns in cash flow generation relative to its enterprise value [4] - Despite this, the company's earnings yield is approximately 9.48%, reflecting the earnings generated per dollar invested in its stock [4] Shareholder Value Initiatives - Onity announced a $10 million share repurchase program, indicating its strong financial position and commitment to enhancing shareholder value by potentially increasing the value of remaining shares [5][6]

Financial Data and Key Metrics Changes - Revenue increased by 25% year-over-year in Q4 and 6% sequentially, despite typically being a weaker quarter for originations [19] - Adjusted return on equity (ROE) was 7% for the quarter and 17% when adjusted for governmental impacts [19] - Book value per share increased by more than $11 quarter-over-quarter and $17 year-over-year due to ongoing profitable operations and a $120 million release of the valuation allowance [19][27] Business Line Data and Key Metrics Changes - The origination segment saw significant year-over-year and sequential growth in adjusted pre-tax income, driven by record levels of origination volume in both Consumer Direct and B2B channels [20] - Consumer Direct volume increased sharply, reflecting strong recapture performance and improved revenue per loan [21] - Servicing was profitable but impacted by higher than expected MSR runoff expenses, primarily due to government actions and higher delinquencies [22] Market Data and Key Metrics Changes - The owned MSR portfolio increased by 15% year-over-year, while total industry servicing growth was only 2% [12] - The servicing UPB at the end of 2025 was up 9% over the prior year, with $49 billion in servicing additions net of runoff [12] - The subservicing additions in the second half of 2025 were $33 billion, over 2.5 times the first half level, indicating strong market interest [10] Company Strategy and Development Direction - The company executed a strategic partnership with Finance of America Reverse to simplify its participation in the reverse mortgage market, aiming for future earnings growth [5] - The focus for 2026 includes executing a proven strategy, simplifying operations, and investing in technology to drive profitable growth [17] - The company is targeting an adjusted ROE range of 13%-15% for 2026, reflecting a commitment to maximizing shareholder value [21] Management's Comments on Operating Environment and Future Outlook - The macro environment is viewed as largely favorable for housing and housing finance, with projected 15% year-over-year growth in total industry origination volume [15] - Potential headwinds include the impact of FHA modification rule changes and increased competition in subservicing [16] - Management remains optimistic about the business potential, emphasizing a balanced business model that can perform well in varying interest rate environments [32] Other Important Information - The company has a liquidity position of $205 million at year-end 2025, with plans for a $10 million share buyback program [28][29] - The release of the valuation allowance is seen as a significant indicator of recent profitability improvements and strategic execution [27] Q&A Session Summary Question: Impact of FHA on MSR - Management noted a $14 million impact in Q4 due to FHA changes and expects stabilization by Q2 2026, but quantifying future impacts is challenging [36][38] Question: Government Shutdown Impact on Originations - Management indicated that the government shutdown did not materially impact refinance performance, with a record-setting quarter for refinances [39] Question: Subservicing Business and Interest Rates - Management stated that subservicing opportunities are not solely dependent on interest rates, with recent market disruptions creating growth potential [46][48] Question: Capital Availability from Rithm Portfolio Transfer - The transfer of the Rithm portfolio will not free up capital, but the sale of the reverse mortgage business is expected to release approximately $100 million [50]

Financial Data and Key Metrics Changes - Revenue increased by 25% year-over-year in Q4 and 6% sequentially, continuing a strong growth trend [21] - Adjusted return on equity (ROE) was 7% for the quarter and 17% when adjusted for governmental impacts [21] - Book value per share increased by more than $11 quarter-over-quarter and $17 year-over-year due to ongoing profitable operations and a $120 million release of the valuation allowance [21][29] Business Line Data and Key Metrics Changes - The origination segment saw significant year-over-year and sequential growth in adjusted pre-tax income, driven by record levels of origination volume in both Consumer Direct and B2B channels [22] - Consumer Direct volume increased sharply, reflecting strong recapture performance and improved revenue per loan [23] - Servicing was profitable but impacted by higher than expected MSR runoff expenses, primarily due to government actions and higher delinquencies [24] Market Data and Key Metrics Changes - The owned MSR portfolio increased by 15% year-over-year, while total industry servicing growth was only 2% [14] - The servicing UPB at the end of 2025 was up 9% over the prior year, with $49 billion in servicing additions net of runoff [14] - The subservicing additions in the second half of 2025 were $33 billion, over 2.5 times the first half level, indicating strong market interest [11] Company Strategy and Development Direction - The company executed a strategic partnership with Finance of America Reverse to simplify its participation in the reverse mortgage market, aiming for future earnings growth [5] - The focus for 2026 includes executing a proven strategy, investing in technology, and driving profitable growth while transitioning out of the Rithm subservicing [19] - The company is targeting an adjusted ROE range of 13%-15% for 2026, reflecting a commitment to maximizing shareholder value [21] Management's Comments on Operating Environment and Future Outlook - The macro environment is viewed as largely favorable for housing and housing finance, with projected 15% year-over-year growth in total industry origination volume [16] - Potential headwinds include the impact of FHA modification rule changes and increased competition in forward residential subservicing [18] - The company remains optimistic about its balanced business model and its ability to perform through market cycles [34] Other Important Information - The company has a liquidity position of $205 million at year-end 2025, with $181 million in unrestricted cash [30] - A $10 million share buyback program has been approved, which can be funded with existing liquidity [31] - The release of the valuation allowance is seen as a strong indicator of recent improvements in profitability [29] Q&A Session Summary Question: Impact of FHA on MSR - Management noted a $14 million impact in Q4 and indicated that stabilization is expected by Q2 2026, but quantifying future impacts is challenging [38][40] Question: Government Shutdown Impact on Originations - Management stated that there was no material impact on refinance performance during the government shutdown, with a record-setting quarter for refinances [41] Question: Guidance Clarification - The 13%-15% guidance for ROE is pre-tax, and management is focused on generating competitive returns [42][44] Question: Ideal Interest Rate Environment for Subservicing - Management indicated that subservicing opportunities are not solely dependent on interest rates, with recent market disruptions creating growth potential [49][52] Question: Capital Availability from Rithm Portfolio Transfer - The transfer of the Rithm portfolio will not free up capital, but the sale of the reverse mortgage business is expected to release approximately $100 million [53]

Financial Data and Key Metrics Changes - The company reported a 25% year-over-year increase in revenue for the fourth quarter and a 6% sequential increase [20] - Adjusted return on equity (ROE) was 7% for the quarter and 17% when adjusted for governmental impacts [21] - Book value per share increased by more than $11 quarter-over-quarter and $17 year-over-year due to ongoing profitable operations and the release of a $120 million valuation allowance [22][29] Business Line Data and Key Metrics Changes - The origination segment saw significant growth, with record levels of origination volume in both Consumer Direct and B2B channels [22] - B2B volume continued to exceed previous records, supported by a strong enterprise sales force and improved margins [23] - Consumer Direct volume increased sharply, reflecting strong recapture performance and improved revenue per loan [23] Market Data and Key Metrics Changes - The owned MSR portfolio increased by 15% year-over-year, while total industry servicing growth was only 2% [13] - The servicing UPB at the end of 2025 was up 9% over the prior year, with $49 billion in servicing additions net of runoff [13] - The company expects a 5%-15% increase in servicing book UPB growth for 2026, despite the non-renewal of the Rithm contract [32] Company Strategy and Development Direction - The company executed a strategic partnership with Finance of America Reverse to simplify its participation in the reverse mortgage market, aiming for future earnings growth [5] - The focus for 2026 includes executing a proven strategy, simplifying operations, and investing in technology to drive profitable growth [19] - The company plans to evaluate opportunistic bulk acquisitions if the economics are compelling [19] Management's Comments on Operating Environment and Future Outlook - The macro environment is viewed as largely favorable for housing and housing finance, with projected 15% year-over-year growth in total industry origination volume [16] - Potential headwinds include the impact of FHA modification rule changes and increased competition in forward residential subservicing [17] - The company remains optimistic about its balanced business model and its attractiveness to investors in the mortgage sector [18] Other Important Information - The company has a liquidity position of $205 million at year-end 2025, with $181 million in unrestricted cash [30] - A $10 million share buyback program has been approved, which can be funded with liquidity as of year-end 2025 [31] Q&A Session Summary Question: Impact of FHA changes on MSR - Management noted a $14 million impact in Q4 and indicated that quantifying future impacts is challenging but expects stabilization by Q2 2026 [38][40] Question: Government shutdown impact on origination - Management reported no material impact on refinance performance during the government shutdown, with a record-setting quarter for refinances [41] Question: Guidance on adjusted ROE - The guidance of 13%-15% for adjusted ROE is pre-tax and considers the $120 million increase in equity from earnings [42][44] Question: Ideal interest rate environment for subservicing - Management indicated that subservicing opportunities are not solely dependent on interest rates and highlighted recent market disruptions as catalysts for growth [49][50] Question: Capital availability from Rithm portfolio transfer - The transfer of the Rithm portfolio itself will not free up capital, but the closing of the reverse mortgage business sale is expected to free up approximately $100 million [53]