Accessibility StatementSkip Navigation Third Quarter 2025 Summary Asset Quality Loans and Deposits Capital Profitability Effective October 17, 2025, Flagstar Bank, N.A. (the "Bank") became the successor reporting company to Flagstar Financial, Inc. (the "Company"), pursuant to an internal corporate reorganization to eliminate the Bank's holding company structure (the "Reorganization"). In connection with the completion of the Reorganization, the Company was merged with and into the Bank, with the Bank cont ...

Core Insights - Onity Group Inc. reported strong second quarter results for 2025, highlighting sustained profitability and growth despite market challenges [4][8] - The company emphasized its commitment to delivering strong shareholder returns through a diversified and technology-enabled business model [4] Financial Performance - Net income attributable to common stockholders was $20 million, with diluted EPS of $2.40 and a return on equity (ROE) of 17% [8] - Adjusted pre-tax income was $16 million, leading to an annualized adjusted ROE of 14% [8] - Originations volume reached $9.4 billion, a 35% increase year-over-year, surpassing the industry growth rate of 23% [8] - Average servicing UPB (unpaid principal balance) increased to $307 billion, up $2 billion year-over-year [8] Business Highlights - Funded recapture volume increased 2.4 times year-over-year, with a refinance recapture rate 1.5 times the industry average [9] - The average owned servicing UPB rose by 16% year-over-year to $153 billion [9] - The company maintained total liquidity of $218 million as of June 30, 2025 [9] Market Position - Onity Group operates primarily through its brands, PHH Mortgage and Liberty Reverse Mortgage, positioning itself as a leading non-bank financial services provider [7][10] - Fitch Ratings upgraded all of the company's residential primary servicer ratings, affirming its strong market position [9] Outlook - The company confirmed its previous guidance for 2025, maintaining an adjusted ROE range of 16% to 18% [8] - Onity Group anticipates the potential release of some or all of its $180 million deferred tax valuation allowance by year-end 2025 [8]

Core Insights - Mr. Cooper Group reported Q2 2025 earnings with earnings per share (GAAP) at $3.04, below the $3.18 consensus, and revenue at $608 million, nearly 10% short of the $674.24 million expectation [1][11] Business Overview - Mr. Cooper operates in the U.S. housing finance market, focusing on mortgage servicing and origination, which includes collecting mortgage payments and creating new residential mortgage loans [3] - The company's business model emphasizes managing a large portfolio of residential mortgages, with key success factors being servicing scale, cost efficiency, and technology-driven improvements [4] Quarterly Performance Highlights - The servicing portfolio's unpaid principal balance reached $1,509 billion, up 25% year-over-year, although it dipped slightly from the previous quarter [5] - Net servicing revenue increased to $426 million, supported by a reduction in expenses from $240 million in Q1 2025 to $148 million [5] - The servicing segment achieved a pretax operating income of $332 million for the second consecutive quarter, with improved credit quality as delinquency rates fell to 1.4% [6] - The originations segment saw pretax income rise to $64 million from $45 million in Q1 2025, with funded origination volume climbing 14% to $9.4 billion [8] Strategic Initiatives - Subservicing remains a significant part of the business, with a balance of $778 billion, allowing for growth without substantial capital risk [7] - The company announced a new mortgage servicing rights (MSR) fund with $200 million in initial capital, indicating plans for further growth in this area [7] - Technological investments, including digital tools and AI, are aimed at enhancing cost efficiency and customer service [9] Financial Metrics - Tangible book value per share increased to $75.90 from $72.53, and return on tangible common equity (ROTCE) rose to 17.2% [10] - Company-wide expenses decreased to $330 million from $430 million in Q1 2025 [9] Future Outlook - Management highlighted the pending merger with Rocket and the launch of the new MSR Fund as significant developments, with a focus on expanding the customer base and maintaining cost discipline [12][13]

Financial Performance - GAAP Net Income was $2839 million, or $053 per diluted share, with a 17% Return on Equity[15] - Earnings Available for Distribution (EAD) reached $2911 million, or $054 per diluted share, resulting in an 18% Return on Equity[15] - The company's book value stood at $67 billion, equivalent to $1271 per common share[15] - Cash and liquidity amounted to $21 billion, complemented by a common stock dividend with an 89% dividend yield, or $025 per common share[15] Business Highlights - Rithm Capital has approximately $80 billion in investable assets, including $36 billion in Assets Under Management (AUM) and $44 billion in balance sheet assets[9] - Newrez's total servicing portfolio reached $864 billion UPB, ranking it as the 3 US Mortgage Servicer and 4 US Mortgage Originator[12] - Genesis Capital's Q2'25 originations totaled $12 billion, representing a 49% year-over-year increase[30] - Sculptor Capital reported $36 billion of AUM, up $35 billion since acquisition close, with $17 billion of gross inflows in Q2[30] Strategic Initiatives - The company believes a strategy centered on earnings growth and an increased focus on fee-related earnings will lay a foundation for significant upside[17] - Rithm Property Trust has an active investment pipeline of over $2 billion[12] - The company's current valuation of 96% of book value understates the intrinsic value of Rithm's core segments[25]

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]