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].

Core Insights - Onity Group reported a revenue of $224.8 million for the quarter ended December 2024, reflecting an 18.9% decrease year-over-year [1] - The earnings per share (EPS) for the quarter was $1.39, down from $1.44 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $253.37 million, resulting in a surprise of -11.28% [1] - The company experienced an EPS surprise of -40.60%, with the consensus EPS estimate being $2.34 [1] Performance Metrics - Onity's shares have returned +22% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Revenue Breakdown - Other revenues amounted to $12.40 million, exceeding the average estimate of $10.62 million from two analysts [4] - Gain on loans held for sale, net, was reported at $5.80 million, below the average estimate of $9.90 million [4] - Gain on reverse loans held for investment and HMBS-related borrowings, net, was $0.60 million, significantly lower than the average estimate of $20.28 million [4] - Servicing and subservicing fees totaled $206 million, slightly below the average estimate of $212.33 million [4]

Full-Year and Fourth Quarter 2024 Business Update February 13, 2025 © 2025 Onity Group Inc. All rights reserved. Proprietary and Confidential. 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. F ...

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]

分组1 - Onity Group reported quarterly earnings of $1.39 per share, missing the Zacks Consensus Estimate of $2.34 per share, and down from $1.44 per share a year ago, representing an earnings surprise of -40.60% [1] - The company posted revenues of $224.8 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 11.28%, and down from $277.3 million year-over-year [2] - Over the last four quarters, Onity has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] 分组2 - Onity shares have increased approximately 27.8% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $2.39 on revenues of $256.76 million, and for the current fiscal year, it is $10.51 on revenues of $1.06 billion [7] 分组3 - The Zacks Industry Rank indicates that the Financial - Mortgage & Related Services sector is currently in the bottom 46% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The estimate revisions trend for Onity is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6]

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 ...