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For Immediate ReleaseChicago, IL – November 14, 2024 – Today, Zacks Equity Research PennyMac Financial Services, Inc. (PFSI) , Lending Tree, Inc. (TREE) and Onity Group Inc. (ONIT) .Industry: MortgageLink: https://www.zacks.com/commentary/2369478/3-stocks-to-buy-from-prospering-mortgage-related-services-industryAs the Federal Reserve keeps lowering interest rates, the Zacks Mortgage & Related Services industry will benefit from the improving trends of purchase originations and refinancing volumes. This will ...

Core Viewpoint - The Zacks Mortgage & Related Services industry is poised to benefit from declining interest rates, which will enhance purchase originations and refinancing volumes, despite rising competition and pressure on sales margins [1][2]. Industry Overview - The Zacks Mortgage & Related Services industry includes providers of mortgage-related loans, refinancing, and loan-servicing facilities. Non-banks are gaining market share as banks retreat due to compliance and capital requirements [3]. - The industry is heavily influenced by Federal Reserve interest rates, which affect consumer mortgage applications and investment income from mortgage-backed securities [3]. Current Trends - The U.S. housing market is showing signs of favoring buyers, which is expected to positively impact mortgage originations and reduce operational challenges for originators [6]. - Mortgage rates have recently declined, with the average 30-year fixed-rate mortgage at 6.79% as of November 7, down from 7.50% a year ago, although rates have risen in recent weeks due to political and economic factors [4][5]. - Refinancing activities are on the rise, with a 48% increase in applications compared to the previous year, driven by lower mortgage rates [8]. Competitive Landscape - The competitive environment is intensifying, with many companies experiencing declines in gain-on-sale margins, which may challenge profitability [9]. - Despite the competitive pressures, the U.S. single-family mortgage debt is expected to grow due to house price appreciation [9]. Industry Performance - The Zacks Mortgage & Related Services industry has outperformed the broader Zacks Finance sector and the S&P 500, gaining 55.3% over the past year compared to 36.8% and 35.7% respectively [12]. - The industry currently trades at a price-to-book ratio of 4.62X, which is lower than the S&P 500's 8.68X, indicating a premium valuation compared to the broader finance sector [13][14]. Notable Companies - **PennyMac Financial Services, Inc. (PFSI)**: Reported earnings of $3.49 per share, exceeding estimates, with a book value per share of $72.95. The company has a market cap of $5.44 billion and a Zacks Rank of 1 (Strong Buy) [16][17]. - **Lending Tree, Inc. (TREE)**: Achieved adjusted net income of 80 cents per share, with total revenues growing 68% year-over-year to $260.8 million. The company has a market cap of $698.03 million and a Zacks Rank of 2 (Buy) [19]. - **Onity Group Inc. (ONIT)**: Reported earnings of $4.33 per share, significantly above estimates, with an originations volume of $8.5 billion, up 23% sequentially. The company has a market cap of $243.9 million and a Zacks Rank of 1 [21][22].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: ____________________ to ____________________ Commission File No. 1-13219 Onity Group Inc. (Exact name of registrant as specified in its charter) Florida ...

WEST PALM BEACH, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity”), a leading non-bank mortgage servicer and originator, today announced that PHH Escrow Issuer LLC (“Escrow Issuer”), a wholly-owned special purpose subsidiary of PHH Corporation (“PHH”), closed the previously announced offering of $500 million aggregate principal amount of 9.875% Senior Notes due 2029 (the “Notes”). Glen A. Messina, Chair, President and CEO of Onity Group, said, “We have made significant progress ...

Financial Data and Key Metrics Changes - The company reported its highest adjusted pre-tax income and return on equity in the last three years, with a net income of $21 million [6][10] - Adjusted pre-tax income increased by $162 million for the last 12 months ended September 30 compared to the full year 2022, with a 19% adjusted ROE, up from a negative 17% in 2022 [10][26] - The debt-to-equity ratio closed the quarter at 2.9:1, with a reduction of corporate and MSR debt by over $180 million this year [8][43] Business Line Data and Key Metrics Changes - The servicing and origination platforms delivered improved performance, with total servicing additions of $18 billion, a 26% increase in total origination volume, and a 52% increase in consumer direct recapture volume compared to the second quarter [7][27] - The servicing segment's adjusted pre-tax income was $13 million, a 35% increase year-over-year, driven by higher revenues and lower costs [31] - The origination segment saw a total funded origination volume increase of 23% to $8.5 billion, with strong performance from the consumer direct channel [33] Market Data and Key Metrics Changes - The company added $38 billion in third-party subservicing additions year-to-date, significantly more than the total for the full year 2023 [13] - The recapture platform delivered strong performance, with lock volume up 76% and funded volume up 52% compared to the second quarter [17] - The average subservicing volumes grew year-over-year by $9 billion of Unpaid Principal Balance (UPB) [32] Company Strategy and Development Direction - The company is executing a 5-point strategy focused on balance and diversification, capital-light growth, industry-leading cost structure, top-tier operating performance, and dynamic asset management [9] - The growth strategy emphasizes capital-light subservicing and disciplined investment management for the MSR portfolio, with a target range of $115 billion to $135 billion in UPB [14][74] - The company aims to close the valuation gap by executing its strategy, delivering strong financial performance, and increasing investor awareness [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate the market environment and deliver long-term value for shareholders, citing robust profitability and progress against strategic objectives [50][51] - The company anticipates a slightly improved originations market but remains cautious about interest rate trends, which could impact servicing profitability [60][61] - Management highlighted the importance of maintaining a balanced business model to perform well in varying interest rate conditions [61] Other Important Information - The company successfully executed multiple transactions to restructure corporate debt, resulting in a projected $100 million decline in corporate debt and an extension of corporate debt maturity to November 2029 [43][44] - The deferred tax asset on the balance sheet is significant, currently over $170 million, but is offset by a valuation allowance that will be lifted as cumulative taxable income is achieved [86][89] Q&A Session Summary Question: Expectations for pre-tax earnings in the fourth quarter - Management confirmed that the estimate for pre-tax earnings is around $40 million, primarily driven by continued success in originations and servicing [53][55] Question: Impact of transactions on diluted share count - Management indicated that the transactions would significantly reduce dilution based on the current share price, with detailed modeling provided in the investor presentation [56] Question: Guidance for adjusted ROE into 2025 - Management anticipates a slightly improved originations market but acknowledges potential challenges from interest rates, which could affect servicing profitability [59][60] Question: Pricing changes at GSEs affecting the co-issue MSR channel - Management explained that GSEs can change pricing at their discretion, impacting loans in the pipeline, and noted ongoing discussions about better pre-announcement of price changes [66][67] Question: Target ratio between owned MSR and sub-servicing - Management plans to maintain a strategy focused on capital-light growth, managing owned MSR within a range of $115 billion to $135 billion UPB [73] Question: Deferred tax asset status - Management confirmed the deferred tax asset is significant and will be addressed as cumulative taxable income is achieved, with ongoing discussions about its potential impact on book value [86][89]

ONIT.Y " Business Update Third Quarter 2024 November 5, 2024 © 2024 Onity Group Inc. All rights reserved. Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forwardlooking statements are typicall ...

Onity Group (ONIT) came out with quarterly earnings of $4.33 per share, beating the Zacks Consensus Estimate of $1.60 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 170.63%. A quarter ago, it was expected that this mortgage servicer would post earnings of $1.37 per share when it actually produced earnings of $4.07, delivering a surprise of 197.08%.Over the last four quarters, the ...

Exhibit 10.1 REGISTRATION RIGHTS AGREEMENT This REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and entered into as of November 1, 2024, by and between Onity Group Inc., a Florida corporation (the "Company"), SHAP 2018-1, LLC, a Delaware limited liability company ("SHAP"), Waterfall Eden Master Fund, Ltd., Waterfall Sandstone Fund, L.P., Waterfall Rock Island, LLC and Waterfall Victoria Master Fund, Ltd. (each, a "Waterfall Fund" and collectively, the "Waterfall Funds"). WHEREAS, this Agreement is ...

Net income of $21 million and diluted EPS of $2.65; return on equity of 19%Adjusted pre-tax income of $35 million, resulting in adjusted pre-tax return on equity of 31%Executed several transactions to facilitate corporate debt refinancing, resulting in a debt-to-equity ratio of 2.9x as of September 30, 2024, compared to 3.9x in fourth quarter 2023$18 billion in total servicing additions ($8 billion in subservicing additions)Book value per share improved to $59.50 as of September 30, 2024 WEST PALM BEACH, Fl ...