Financial Data and Key Metrics Changes - For the full year 2024, the company reported an adjusted ROE of 20% and the highest net income since 2013, despite incurring debt restructuring costs [9][13] - The fourth quarter adjusted pretax income was $11 million, marking the ninth consecutive profitable quarter, while the GAAP net loss was $29 million due to a $41 million charge for corporate debt restructuring [12][36] - The full year adjusted pretax income reached $90 million, an 84% increase compared to the previous year, with GAAP net income attributable to common stockholders at $33 million [13][38] Business Line Data and Key Metrics Changes - The servicing segment remained the earnings engine, with adjusted pretax income for originations and servicing in the fourth quarter at $40 million, contributing to a total of $200 million for the full year [14][37] - Total servicing additions increased by 70% over 2023, with a record level of 16 new subservicing clients added in 2024 [16][17] - The origination volume was up 33% in 2024 compared to 2023, outperforming the total industry origination volume growth of 17% [16] Market Data and Key Metrics Changes - The company serviced or subserviced 1.4 million loans with a total UPB of over $300 billion, servicing for more than 4,000 investors and 125 subservicing clients [23] - The reverse mortgage segment experienced a quarter-over-quarter drop of $9 million, influenced by prior gains and lower revenue due to a decline in UPB [46] Company Strategy and Development Direction - The company aims to maintain a 50-50 mix of owned servicing and subservicing to optimize earnings growth and returns, targeting over $135 billion of owned MSRs [30][104] - The focus for 2025 includes accelerating organic growth, differentiating operating performance, and enhancing customer experience through technology and AI applications [29][33] - The implementation of the new HMBS 2.0% structure is expected to create more liquidity and opportunities in the reverse mortgage market, enhancing risk management [82] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position to navigate the market environment and deliver long-term value for shareholders, highlighting a robust increase in profitability and returns in 2024 [57] - The company anticipates continued growth in servicing and MSR volume, with a strong adjusted ROE expected in the range of 16% to 18% for 2025 [53][54] Other Important Information - The company completed a debt issuance that reduced its debt load by about 22% from year-end 2023, improving its balance sheet and liquidity [40][42] - Investments in technology and AI have led to significant operational efficiencies, with over 50,000 hours of manual effort saved monthly through automation [26][27] Q&A Session Summary Question: Impact of restructuring on ROE - Management confirmed that the $14 million benefit from restructuring will positively impact ROE going forward [61] Question: Gain on sale margin clarification - Management indicated that the gain on sale margin may be influenced by direct purchases of MSRs, which do not reflect loan gain on sale [66] Question: Technology spending guidance - Management stated that technology investments are evaluated based on their return on investment and business case [75][77] Question: Operating leverage in subservicing - Management noted that subservicing generally delivers an incremental contribution margin of about two basis points on average [80] Question: HMBS 2.0% structure implications - Management explained that the new structure enhances liquidity and provides more options for risk management in the reverse mortgage space [82] Question: Features of new home equity and proprietary reverse products - Management highlighted improvements in product offerings based on customer feedback, aiming to better meet consumer needs in a higher interest rate environment [90][92]

Onity Group (ONIT) came out with quarterly earnings of $1.39 per share, missing the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40.60%. A quarter ago, it was expected that this mortgage servicer would post earnings of $1.60 per share when it actually produced earnings of $4.33, delivering a surprise of 170.63%.Over the last four quarters, the ...

Financial Performance - Full-year 2024 net income attributable to common stockholders reached $33 million, the highest since 2013, with diluted EPS of $4.13 and ROE of 8%[5] - Reported net income for FY'24 was $34 million, a significant improvement from a net loss of $64 million in FY'23[19] - Adjusted pre-tax income for FY'24 increased to $90 million, compared to $49 million in FY'23[21] - Total revenue for FY'24 was $976 million, down from $1,066.7 million in FY'23, primarily due to a decrease in servicing and subservicing fees[23] - Adjusted return on equity (ROE) for FY'24 was 20%, compared to 10% in FY'23[21] Servicing and Originations - Total servicing additions for 2024 amounted to $86 billion, including $47 billion in subservicing additions[5] - Funded recapture volume for full-year 2024 increased 2.5 times compared to 2023, with fourth quarter 2024 up 4.2 times over fourth quarter 2023[9] - Originations volume for 2024 was $30 billion, a 33% increase compared to 2023, with fourth quarter volume at $10 billion, up 72% year-over-year[9] - Total servicing UPB reached $302 billion at December 31, 2024, an increase of $13 billion from the previous year[9] Balance Sheet and Assets - Book value per share improved by $4 year-over-year to $56 as of December 31, 2024[5] - Corporate debt was reduced by $145 million, resulting in a debt-to-equity ratio of 2.96 to 1[5] - Total assets increased to $16,435.4 million in FY'24, up from $12,513.7 million in FY'23[22] - Mortgage servicing rights (MSRs) at fair value rose to $2,466.3 million in FY'24 from $2,272.2 million in FY'23[22] Operating Expenses and Cash Flow - Operating expenses for FY'24 totaled $436.5 million, an increase from $412.1 million in FY'23[23] - Cash and cash equivalents decreased to $184.8 million in FY'24 from $201.6 million in FY'23[22] - The company recognized significant legal and regulatory settlement expenses of $8 million in FY'24, compared to $21 million in FY'23[19] Future Guidance and Recognition - The adjusted ROE guidance for 2025 has been increased to 16% - 18%[4] - The company achieved HUD Tier 1 servicer rating for the fourth consecutive year and was recognized by the 2024 Freddie Mac SHARP program for subservicing[9] - The company reported a gain on the sale of MAV canopy amounting to $14 million in FY'24[19]

Full-Year 2024 Results - Onity Group reported a net income of $33 million, the highest since 2013, with a diluted EPS of $4.13 and an ROE of 8% [7] - Adjusted pre-tax income reached $90 million, resulting in an adjusted ROE of 20% [7] - Total servicing additions amounted to $86 billion, with $47 billion in subservicing additions [7] - Book value per share improved by $4 year-over-year to $56 as of December 31, 2024 [7] - Corporate debt was reduced by $145 million, leading to a debt-to-equity ratio of 2.96 to 1 [7] Fourth Quarter 2024 Results - The company reported a net loss attributable to common stockholders of $29 million, with a diluted EPS of ($3.63) and an ROE of (25%) [7] - Adjusted pre-tax income for the fourth quarter was $11 million, resulting in an annualized adjusted ROE of 10% [7] - Total servicing additions for the quarter were $25 billion, with $8 billion in subservicing additions [7] Business Highlights - Funded recapture volume for full-year 2024 increased 2.5 times compared to 2023, with a fourth quarter increase of 4.2 times over the same quarter in 2023 [8] - Originations volume reached $30 billion in 2024, up 33% from 2023, with $10 billion in the fourth quarter, a 72% increase year-over-year [8] - Total servicing UPB was $302 billion as of December 31, 2024, an increase of $13 billion from the previous year [8] - The company maintained total liquidity of $248 million as of December 31, 2024 [8] 2025 Outlook - The CEO expressed confidence in the company's strategy and capabilities, indicating a strong position to accelerate growth and improve returns in 2025 and beyond [4] - Adjusted ROE guidance was increased to a range of 16% - 18% [7]

Company Overview - Onity Group (ONIT) is expected to report earnings for the quarter ended December 2024, with a consensus estimate of $2.34 per share, reflecting a year-over-year increase of +62.5% [3] - Revenues are anticipated to be $253.37 million, which represents a decline of 8.6% compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 9.91% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Onity matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11] Historical Performance - In the last reported quarter, Onity exceeded the expected earnings of $1.60 per share by delivering $4.33, resulting in a surprise of +170.63% [12] - Over the past four quarters, Onity has consistently beaten consensus EPS estimates [13] Market Sentiment - The stock's movement may be influenced by the upcoming earnings report scheduled for February 13, with potential for upward movement if results exceed expectations [2] - Despite the positive historical performance, Onity does not currently appear to be a compelling earnings-beat candidate, as indicated by its Zacks Rank of 3 [11][16] Industry Context - In the broader context of the Zacks Financial - Mortgage & Related Services industry, Zillow Group (ZG) is expected to report earnings of $0.29 per share, reflecting a year-over-year increase of +45% [17] - Zillow's revenue is projected to be $540.64 million, up 14.1% from the previous year, with a positive Earnings ESP of 15.52% and a Zacks Rank of 2 (Buy), indicating a strong likelihood of beating consensus estimates [18]

WEST PALM BEACH, Fla., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that it will hold a conference call on Thursday, February 13, 2025 at 8:30 a.m. (ET) to review the Company’s fourth quarter and full-year 2024 operating results. All interested parties are welcome to participate. You can access the conference call by dialing (800) 274-8461 or (203) 518-9814 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” Pa ...

AI assistant, known as LASI, now available to enhance the client experience in LoanSpan, PHH’s client analytics and reporting platformWEST PALM BEACH, Fla., Feb. 03, 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 an AI assistant through its LoanSpan client reporting and analytics platform to enhance the client experience. LoanSpan’s AI assistan ...

Onity Group (ONIT) shares soared 5.2% in the last trading session to close at $32.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.3% loss over the past four weeks.Onity Group shares rallied in the second consecutive trading session as cooler December inflation fueled optimism about a potential Fed rate cut. Despite mortgage rates near 7%, lower rates could eventually boost mortgage demand and strengthen the company’s financ ...

WEST PALM BEACH, Fla., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that Valerie Haertel has joined the Company as Vice President, Investor Relations. Ms. Haertel will report to Sean O’Neil, Executive Vice President and Chief Financial Officer of Onity. Ms. Haertel is responsible for leading Onity’s investor relations activities to accelerate investor outreach and to communicate the Company’s ...

WEST PALM BEACH, Fla., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that it has completed the previously announced transaction with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to sell the Company’s 15% interest in MSR Asset Vehicle LLC (“MAV”) to Oaktree for total cash proceeds of $49.5 million. Onity’s subsidiary, PHH Mortgage Corporation, will remain the exclusive subservic ...