Financial Data and Key Metrics Changes - Adjusted pretax income for Q1 2025 was $25 million, with an annualized adjusted ROE of 22%, exceeding guidance [6][24] - GAAP net income attributable to common shareholders was $21 million, or $2.5 per share fully diluted, reflecting an annualized return on equity of 19% [7] - Average servicing UPB for the quarter was $5 billion, up $13 billion compared to Q1 2024 [7] - Book value per share increased approximately 4% year-over-year and 2% compared to year-end 2024 [7] Business Line Data and Key Metrics Changes - The origination and servicing segments both reported profitability, with adjusted pretax income of $48 million for Q1 2025 [12] - Servicing segment adjusted pretax income grew due to increased fee generation, up 6% year-over-year [26] - Originations volume grew by 50% year-over-year, with the high-margin consumer direct channel growing by about 165% [28] Market Data and Key Metrics Changes - Industry origination volumes are expected to increase by 17% year-over-year, driven by a 9% increase in home purchase volume and a 39% increase in refinancing volume [8] - The company noted that the probability of a recession has increased, but mortgage delinquencies have not yet deteriorated [9] Company Strategy and Development Direction - The company aims to accelerate growth in originations volume and total servicing UPB as part of its 2025 operating priority [6] - The balanced business model is designed to perform well in both high and low interest rate environments [11] - The company is focused on product development, with new product launches expected to expand market opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic and unpredictable year, maintaining full-year guidance despite market volatility [10] - The company believes its servicing portfolio mix and special servicing skills will help minimize delinquencies in a recession [10] - Management highlighted the importance of maintaining flexibility to evaluate options for creating shareholder value [11] Other Important Information - The company reached a settlement on a nearly two-decade-old class action litigation matter, allowing it to move forward [50] - The valuation allowance on U.S. deferred tax assets could potentially increase book value by approximately $22 per share if lifted [32] Q&A Session Summary Question: Inquiry about the valuation allowance and its implications - Management confirmed that lifting the valuation allowance would directly impact net income and book value, with ongoing analysis to determine the extent of the allowance [40][42] Question: Timing for utilizing deferred tax assets - The majority of the deferred tax assets are indefinite and not limited by a timeframe, allowing for flexibility in utilization [49] Question: Legal expenses and regulatory matters - Management discussed a settlement of a legacy class action lawsuit and noted ongoing compliance with legal matters in the mortgage industry [50][52] Question: Impact of Rocket Coupe merger on the subservicing market - Management indicated that the merger could lead to clients exploring alternatives, creating opportunities for growth in the subservicing business [56][58] Question: Advantages of being a flow buyer versus a bulk buyer - The company highlighted its flexibility in sourcing MSRs through various channels, allowing it to maximize returns based on market conditions [60] Question: Operating efficiency objectives - Management stated that while there is no specific target for operating efficiency, the goal is to continue increasing pretax income across segments [62]

First Quarter 2025 Business Update on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity's, our contractual counterparties', or our vendors' information technology or other security systems or privacy protections, includin ...

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]

Core Insights - Onity Group Inc. reported strong first quarter 2025 results, highlighting growth in revenue, adjusted pre-tax income, adjusted ROE, and book value per share compared to the previous year [2][5][6] - The company anticipates continued growth driven by a balanced business strategy, customer focus, and an award-winning servicing platform, despite economic uncertainties and interest rate volatility [2][6] Financial Performance - Net income attributable to common stockholders was $21 million, with diluted EPS of $2.50 and ROE of 19% [5][23] - Adjusted pre-tax income was $25 million, resulting in an annualized adjusted ROE of 22% [5][20] - Book value per share increased to $58, up $2.15 year-over-year [5][20] - Total servicing additions reached $17 billion, with an average servicing UPB of $305 billion, up $13 billion year-over-year [5][6] Operational Highlights - Funded recapture volume increased 2.7 times year-over-year, with a refinance recapture rate 1.6 times the industry average [6] - Originations volume was $7 billion, a 53% increase year-over-year, surpassing the industry growth rate of 8% [6] - MSR additions (bulk purchases and originations) totaled $12 billion, more than doubling year-over-year [6] - The company launched enhanced high-margin products, including home equity and proprietary reverse mortgage loans [6] Liquidity and Financial Position - Total liquidity, comprising unrestricted cash and available credit, stood at $239 million as of March 31, 2025 [6] - The company confirmed its previous guidance for 2025, maintaining an adjusted ROE range of 16% to 18% [5][6] Balance Sheet Overview - Total assets amounted to $16.26 billion as of March 31, 2025, compared to $13.09 billion a year earlier [21][22] - Cash and cash equivalents were $178 million, while mortgage servicing rights (MSRs) at fair value were $2.55 billion [21][22] - Total liabilities were $15.75 billion, reflecting a significant increase from $12.66 billion year-over-year [21][22]

Core Viewpoint - Onity Group Inc. will hold a conference call on April 30, 2025, to discuss its first quarter 2025 operating results and provide a business update [1]. Group 1: Conference Call Details - The conference call is scheduled for April 30, 2025, at 8:30 a.m. (ET) [1]. - Interested parties can participate by dialing (800) 579-2543 or (785) 424-1789, referencing the conference ID "Onity" [2]. - A live audio webcast will also be available on the Shareholder Relations page of the company's website [2]. Group 2: Investor Presentation and Replay - An investor presentation will accompany the conference call and will be available on the Shareholder Relations page prior to the call [3]. - A replay of the conference call will be accessible on the website approximately two hours after the call concludes [3]. - A telephonic replay will be available approximately three hours after the call's completion until May 14, 2025, by dialing (844) 512-2921 or (412) 317-6671, using access code 11158988 [3]. Group 3: Company Overview - Onity Group Inc. is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage [4]. - PHH Mortgage is one of the largest servicers in the country, offering a variety of servicing and lending programs [4]. - Liberty is one of the nation's largest reverse mortgage lenders, focusing on loans that help customers meet personal and financial needs [4]. - The company is headquartered in West Palm Beach, Florida, with operations in the U.S., U.S. Virgin Islands, India, and the Philippines, serving customers since 1988 [4].

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]

Company Overview - Onity Group (ONIT) shares increased by 6.5% to close at $28, supported by strong trading volume, contrasting with an 11.1% loss over the past four weeks [1][2] - The company is reportedly considering selling its mortgage servicing rights division as part of a capital restructuring effort to enhance capital allocation [2] Financial Performance - Onity 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 previous year [3] - The consensus EPS estimate for Onity has remained unchanged over the last 30 days, indicating a potential lack of momentum in earnings estimate revisions [4] Industry Context - Onity operates within the Zacks Financial - Mortgage & Related Services industry, where another company, PennyMac Financial (PFSI), saw a 3.7% decline in its stock price, closing at $92.41 [4] - PennyMac's consensus EPS estimate has increased by 1.1% over the past month to $2.99, representing a year-over-year change of 20.6% [5]

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].