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]

Full Year and Fourth Quarter 2025 Business Update February 12, 2026 © 2026 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. Forward- looking statements are ...

Core Viewpoint - PennyMac Financial Services, Inc. is under investigation for potential violations of federal securities laws related to its mortgage recapture efforts as interest rates declined [1][2][3]. Company Overview - PennyMac originates and services home mortgages and has recently increased its capacity to originate loans to retain borrowers seeking to refinance [2]. - The company has publicly claimed improvements in its recapture rates during this period [2]. Investigation Details - The investigation by Bleichmar Fonti & Auld LLP focuses on whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages [3]. Financial Performance - On January 29, 2026, PennyMac reported disappointing financial results for Q4 2025, revealing that increased origination capacity was not sufficient due to heightened competition in the market [4]. - Following the earnings call, PennyMac's stock price dropped over 37%, from $140.70 per share to as low as $93.50 per share [4].

Core Viewpoint - Fannie Mae's fourth quarter and full year 2025 financial results are being discussed, highlighting the company's performance and future expectations in the housing market and economic conditions [2][4]. Financial Performance - The webcast will cover Fannie Mae's financial results for the fourth quarter and the entire year of 2025, indicating a comprehensive review of the company's financial health [2][4]. Forward-Looking Statements - The presentation includes forward-looking statements regarding expectations related to the housing market, economic conditions, and the company's future performance [2][3]. - These statements may differ from actual future events due to various risk factors identified in the company's 2025 Form 10-K [3].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Mortgage rates are trending lower due to a decline in the 10-year Treasury yield, with the average 30-year fixed rate currently at 5.87% and the 15-year fixed rate at 5.34% [1] Mortgage Rates Overview - Current national average mortgage rates include: - 30-year fixed: 5.87% - 20-year fixed: 5.82% - 15-year fixed: 5.34% - 5/1 ARM: 5.83% - 7/1 ARM: 6.02% - 30-year VA: 5.36% - 15-year VA: 4.95% - 5/1 VA: 4.93% [5] Refinance Rates - Today's national average mortgage refinance rates are generally higher than purchase rates, although this is not always the case [3] Economic Influences - Economic news is impacting the bond market, and the upcoming jobs report is expected to influence mortgage rates further [1] Historical Context - Current mortgage rates are over half a percentage point lower than they were a year ago, indicating a favorable trend for potential homebuyers [17]

The U.S. housing market has officially crossed a financial Rubicon, creating a distinct caste system among American homeowners. For the first time since the Federal Reserve began its aggressive rate hikes years ago, the share of homeowners paying steep mortgage rates above 6% now exceeds the elite class of borrowers holding on to rock-bottom rates below 3%. This milestone, identified by Realtor.com’s senior economic research analyst Hannah Jones on Jan. 14, marks a significant inflection point in the ho ...

Core Insights - Current mortgage rates are relatively low, with the average 30-year fixed mortgage rate at 5.95% and the 15-year fixed rate at 5.43%, marking significant milestones under 6% and 5.5% respectively [1][17] - Economic factors, including a disappointing job openings report, are contributing to the low rates, with potential increases expected if upcoming inflation data shows a slower rise [1] Current Mortgage Rates - The national average rates for various mortgage types are as follows: 30-year fixed at 5.95%, 20-year fixed at 5.99%, 15-year fixed at 5.43%, 5/1 ARM at 5.93%, and 7/1 ARM at 5.95% [5][17] - The average 30-year mortgage payment for a $300,000 loan at 5.95% would be approximately $1,789 monthly, resulting in $344,047 in interest over the loan's life [7] - For a 15-year mortgage at 5.43%, the monthly payment would increase to $2,440, with total interest paid being $139,222 [9] Adjustable Mortgage Rates - Adjustable-rate mortgages (ARMs) typically start with lower rates than fixed rates but can increase after the initial period, such as the 5/1 ARM which remains fixed for the first five years [10][11] - Recent trends show that ARM rates can sometimes be similar to or higher than fixed rates, emphasizing the importance of comparing lenders and rates [12] Factors Influencing Mortgage Rates - Lenders offer the lowest rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios, suggesting that improving these factors can lead to better mortgage rates [13] - Options for reducing interest rates include paying for discount points at closing or utilizing temporary buydowns, which can lower initial payments [14][15] Future Rate Predictions - Forecasts indicate that the 30-year mortgage rate is expected to remain around 6.1% through 2026, with Fannie Mae predicting a similar rate near 6% by the end of the year [19]

Core Insights - Current mortgage rates have decreased significantly, with the average 30-year fixed mortgage rate at 5.95%, down 53 basis points from early August, and the 30-year refinance rate at 6.07%, down 51 basis points since August, indicating a potential opportunity for homebuyers and those looking to refinance [1] Current Mortgage Rates - The national average 30-year fixed mortgage rate is 5.95% and the average 15-year mortgage rate is 5.43% [17][18] - The average 30-year refinance rate is 6.07% [5] Mortgage Payment Calculations - For a $300,000 mortgage at a 30-year term with a 5.95% rate, the monthly payment would be approximately $1,789, resulting in $344,047 in interest over the loan's life [9] - For the same mortgage amount at a 15-year term with a 5.43% rate, the monthly payment would increase to $2,440, with total interest paid being $139,222 [9] Fixed vs. Adjustable-Rate Mortgages - Fixed-rate mortgages lock in the interest rate for the entire loan term, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [10][11] - Some recent fixed rates have started lower than adjustable rates, suggesting a need for careful consideration when choosing between the two [12] Factors for Obtaining Low Mortgage Rates - Lenders typically offer lower rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios [13] - Focusing on personal finances rather than waiting for rates to drop is recommended for securing a lower mortgage rate [14] Choosing a Mortgage Lender - It is advisable to apply for mortgage preapproval with multiple lenders within a short time frame to facilitate accurate comparisons [15] - When comparing lenders, the annual percentage rate (APR) should be considered as it reflects the true annual cost of borrowing, including interest rates and fees [16]