# ONITY GROUP INC. (ONIT) Informational only - not investment advice. CIK: 0000873860 SIC: 6162 Mortgage Bankers & Loan Correspondents SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 61](/major-group/61/) > [SIC 6162 Mortgage Bankers & Loan Correspondents](/industry/6162/) Latest 10-K filed: 2026-02-17 SEC page: https://www.sec.gov/edgar/browse/?CIK=873860 Filing source: https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-17 · accession 0001628280-26-008625 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000873860.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,066,700,000 USD | 2025 | verified | | Net income | 189,500,000 USD | 2025 | verified | | Assets | 16,170,600,000 USD | 2025 | verified | | Free cash flow | -750,900,000 USD | 2025 | computed | | Net margin | 17.77% | 2025 | computed | | Revenue YoY | +9.29% | 2025 | computed | | ROE | 30.18% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | ONIT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 17.8% | 6.6% | 81 | 58 | | Revenue growth | 9.3% | 18.6% | 34 | 59 | | FCF margin | -70.4% | -7.3% | 34 | 48 | | ROE | 30.2% | 7.3% | 89 | 58 | | ROA | 1.2% | 1.0% | 53 | 60 | | Liabilities / equity | 24.67 | 3.99 | 93 | 58 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 61 SIC Major Group 61, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1066700000 | USD | 2025 | 2026-02-17 | | Net income | 189500000 | USD | 2025 | 2026-02-17 | | Assets | 16170600000 | USD | 2025 | 2026-02-17 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000873860.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 1,387,163,000 | 1,194,576,000 | 1,063,045,000 | 1,123,375,000 | 960,900,000 | 1,050,100,000 | 953,900,000 | 1,066,700,000 | 976,000,000 | 1,066,700,000 | | Net income | | | | | -199,762,000 | -127,966,000 | -70,772,000 | -142,125,000 | -40,200,000 | 18,100,000 | 25,700,000 | -63,700,000 | 33,900,000 | 189,500,000 | | Diluted EPS | | | | -1.97 | -1.61 | -1.01 | | -15.86 | -4.59 | 1.93 | 2.85 | -8.34 | 4.13 | 21.46 | | Operating cash flow | | | | | 421,228,000 | 409,021,000 | 272,578,000 | 151,940,000 | 261,000,000 | -468,400,000 | 173,200,000 | 10,400,000 | -573,800,000 | -748,000,000 | | Capital expenditures | | | | | 33,518,000 | 9,053,000 | 9,016,000 | 1,954,000 | 4,100,000 | 3,300,000 | 5,500,000 | 2,200,000 | 800,000 | 2,900,000 | | Assets | | | | | 7,655,663,000 | 8,403,164,000 | 9,394,216,000 | 10,406,199,000 | 10,651,100,000 | 12,147,100,000 | 12,399,200,000 | 12,513,700,000 | 16,435,400,000 | 16,170,600,000 | | Liabilities | | | | | 7,000,380,000 | 7,856,290,000 | 8,839,511,000 | 9,994,188,000 | 10,235,755,000 | 11,670,400,000 | 11,942,500,000 | 12,111,900,000 | 15,942,500,000 | 15,492,800,000 | | Stockholders' equity | 1,611,422,000 | 1,812,591,000 | 1,038,394,000 | 851,562,000 | 652,958,000 | 545,040,000 | 554,705,000 | | | | | 401,800,000 | 442,900,000 | 627,900,000 | | Cash and cash equivalents | | | | | 256,549,000 | 259,655,000 | 329,132,000 | 428,339,000 | 284,800,000 | 192,800,000 | 208,000,000 | 201,600,000 | 184,800,000 | 180,500,000 | | Free cash flow | | | | | 387,710,000 | 399,968,000 | 263,562,000 | 149,986,000 | 256,900,000 | -471,700,000 | 167,700,000 | 8,200,000 | -574,600,000 | -750,900,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | -14.40% | -10.71% | -6.66% | -12.65% | -4.18% | 1.72% | 2.69% | -5.97% | 3.47% | 17.77% | | Return on equity | | | | | -30.59% | -23.48% | -12.76% | | | | | -15.85% | 7.65% | 30.18% | | Return on assets | | | | | -2.61% | -1.52% | -0.75% | -1.37% | -0.38% | 0.15% | 0.21% | -0.51% | 0.21% | 1.17% | | Liabilities / equity | | | | | 10.72 | 14.41 | 15.94 | | | | | 30.14 | 36.00 | 24.67 | ## As-reported value updates 1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/ONIT/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000873860.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 4.17 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -5.34 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 1.95 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 255,500,000 | 8,500,000 | 1.05 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 277,300,000 | -47,500,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 239,100,000 | 30,100,000 | 3.74 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 246,400,000 | 10,500,000 | 1.33 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 265,700,000 | 21,400,000 | 2.65 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 224,800,000 | -28,100,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 249,800,000 | 22,100,000 | 2.50 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 246,600,000 | 21,500,000 | 2.40 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 280,300,000 | 18,700,000 | 2.03 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 290,000,000 | 127,200,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 294,300,000 | 7,600,000 | 0.74 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 282,900,000 | -11,900,000 | -1.53 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from ONIT's latest 10-K: [/company/ONIT/business/](/company/ONIT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from ONIT's latest 10-K: [/company/ONIT/risk-factors/](/company/ONIT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/873860/000162828026054426/onit-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in millions, including for charts, except per share amounts and unless otherwise indicated. Amounts may not add in certain tables due to rounding.) OVERVIEW General We are a leading non-bank mortgage servicer and originator providing solutions through our primary brand, Onity Mortgage (formerly PHH Mortgage). On March 23, 2026, PHH Mortgage Corporation changed its name to Onity Mortgage Corporation (OMC). Onity is one of the largest non-bank servicers in the country based on UPB, focused on delivering a variety of servicing and lending programs. Onity is also one of the largest correspondent lenders in the U.S. based on origination UPB. Prior to the sale to FAR as disclosed in Note 5 - Reverse Mortgages and below under “Business Strategy”, Onity Mortgage (formerly Liberty Reverse Mortgage) has been one of the nation’s largest reverse mortgage lenders based on origination and securitization UPB. On April 30, 2026, OMC and FAR entered into an amendment of the November 2025 sale agreements whereby OMC agreed to sell a portion of its reverse MSRs comprised of approximately 20,000 Ginnie Mae HECM loans and subservice the sold portfolio and additional loans from FAR for an initial three-year term. FAR agreed to acquire OMC’s originations pipeline of reverse mortgage loans, and for a period of five years, OMC will no longer originate reverse mortgages upon closing with the exception of activities relating to the recapture of existing HECM borrowers for HECM MSRs not sold to FAR. We received Ginnie Mae’s approval of the sale on May 28, 2026 and the transaction closed on June 30, 2026. Across the forward and reverse portfolios, we serviced or subserviced 1.3 million loans with a total UPB of $341.4 billion on behalf of more than 2,600 investors and 114 subservicing clients as of June 30, 2026. We service all mortgage loan classes, including conventional, government-insured, non-Agency, small-balance commercial and multi-family loans. Our Originations business is part of our balanced business model to generate gains on loan sales and profitable returns, and to support the replenishment and the growth of our servicing portfolio. Through our retail, correspondent and wholesale channels, we originate and purchase conventional and government-insured forward and reverse mortgage loans that we sell or securitize on a servicing retained basis. In addition, we grow our mortgage servicing volume through MSR flow purchase agreements, Agency Cash Window and co-issue programs, bulk MSR purchase transactions, and subservicing agreements. 50 Volume Overview The table below summarizes the new volume of Originations by channel on a current and comparative basis. The volume of Originations is a key driver of the profitability of our Originations segment, along with margins, and also a key driver of the replenishment and growth of our Servicing segment. In the second quarter of 2026, we added $42.2 billion of new volume, with $15.5 billion of new Originations production, $23.7 billion of subservicing additions, and $3.0 billion bulk acquisitions, as further detailed in the below table. [[GREPCENT_TABLE]] [["$ In billions","UPB","","$ Change"],["","Three Months Ended","","","Six Months Ended","","Q2 2026 vs. Q1 2026","","YTD 2026 vs. YTD 2025"],["","June 30,","","March 31,","","","June 30,","","June 30,"],["","2026","","2026","","","2026","","2025"],["Mortgage servicing originations"],["Retail - Consumer Direct MSR (1)","$","1.2","","","$","1.2","","","","$","2.4","","","$","0.7","","","$","\u2014","","","$","1.7"],["Correspondent MSR (1)","6.5","","","5.8","","","","12.3","","","9.1","","","0.7","","","3.2"],["Flow and Agency Cash Window MSR purchases (2)","7.8","","","7.2","","","","14.9","","","6.3","","","0.6","","","8.6"],["Reverse mortgage origination (3)","\u2014","","","0.1","","","","0.1","","","0.3","","","(0.1)","","","(0.2)"],["Total Originations production","15.5","","","14.3","","","","29.7","","","16.4","","","1.2","","","13.3"],["Bulk MSR purchases (2)","3.0","","","5.7","","","","8.7","","","5.1","","","(2.7)","","","3.6"],["Total servicing additions","18.5","","","20.0","","","","38.4","","","21.6","","","(1.5)","","","16.9"],["Interim forward subservicing","5.7","","","5.2","","","","10.8","","","5.0","","","0.5","","","5.8"],["Other new subservicing (5)","18.0","","","3.4","","","","21.4","","","5.3","","","14.6","","","16.1"],["Total subservicing additions (4)","23.7","","","8.5","","","","32.2","","","10.4","","","15.1","","","21.9"],["Total servicing and subservicing UPB additions","$","42.2","","","$","28.5","","","","$","70.6","","","$","32.0","","","$","13.6","","","$","38.8"]] [[/GREPCENT_TABLE]] (1)Represents the UPB of loans that have been originated or purchased (funded) during the respective periods and for which we recognize a new MSR on our consolidated balance sheets upon sale or securitization. (2)Represents the UPB of loans for which the MSR is purchased. (3)Represents the UPB of reverse mortgage loans that have been securitized on a servicing retained basis. The loans are recognized on our consolidated balance sheets under GAAP without any separate recognition of MSRs. (4)Includes interim subservicing, including the volume of UPB associated with short-term interim subservicing for certain clients as a support to their originate-to-sell business. Excludes additions related to sales of MSRs with subservicing retained. (5)Excludes $5.2 billion subservicing additions in connection with the FAR transaction. We began subservicing these loans effective with the closing of the amended sale transaction on June 30, 2026. 51 The following table summarizes the average volume of our Servicing segment, on a current and comparative basis. The average servicing volume is a key driver of the profitability of our Servicing segment. The relative weight of performing and delinquent loans or servicing and subservicing also drive the amount and timing of gross revenue and expenses. Our average total servicing and subservicing UPB increased $7.4 billion or 2.2% during the second quarter of 2026 compared to the preceding quarter (8.9% annualized), net of runoff and sales, mostly driven by an increase in owned MSRs. For the six months, our average total servicing and subservicing UPB increased $31.6 billion or 10.3% as compared to the prior year six months, primarily driven by increases in our owned MSRs and in subservicing. For comparison purposes, the total estimated industry mortgage debt outstanding increased 2.7% quarter over quarter (annualized) and 3.1% year over year (source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of July 22, 2026). [[GREPCENT_TABLE]] [["$ In billions","Average UPB","","% Change"],["","Three Months Ended","","Six Months Ended","","Q2 2026 vs. Q1 2026","","YTD 2026 vs. YTD 2025"],["","June 30,","","March 31,","","June 30,","","June 30,"],["","2026","","2026","","2026","","2025"],["Owned MSR (1)","$","169.2","","$","158.2","","$","163.8","","$","136.9","","7.0%","","19.6%"],["MSR transferred to MSR capital partners (2)","35.6","","38.2","","36.8","","40.1","","(6.8)%","","(8.2)%"],["Subservicing (including reverse subservicing)","123.5","","125.0","","124.2","","116.1","","(1.2)%","","7.0%"],["Reverse mortgage loans and other (3)","13.1","","12.6","","12.8","","12.9","","4.0%","","(0.8)%"],["Total servicing and subservicing UPB (average)","$","341.4","","$","334.0","","$","337.6","","$","305.9","","2.2%","","10.4%"]] [[/GREPCENT_TABLE]] (1)Includes MSRs related to ESS financing liabilities. (2)MSRs sold or transferred to MSR capital partners with subservicing retained and that do not qualify for derecognition / sale accounting. Reported as MSR at fair value on our consolidated balance sheet along with an associated Pledged MSR liability, economically deemed as subservicing relationship. (3)Reverse mortgage loans and other servicing (including whole loans) carried on balance sheet. As of June 30, 2026 and March 31, 2026, the total servicing and subservicing UPB amounted to $341.4 billion and $338.4 billion, respectively, a net increase of $3.0 billion or 0.9% (3.6% annualized). Market Update The following table presents key market interest rates which are important drivers of our businesses. As further discussed, the 30-year fixed rate mortgage is a key driver of Originations volume and prepayments in Servicing, the 10-year Treasury rate is a key benchmark for MSR valuation and hedging activities, and the 1-month SOFR is a key benchmark for the profitability of our Servicing segment (including float earnings and asset-backed financing cost) and our Originations segment (mortgage loan financing cost). [[GREPCENT_TABLE]] [["","Three Months Ended","","","","Six Months Ended"],["","June 30,","","March 31,","","","","June 30,","","June 30,"],["","2026","","2026","","","","2026","","2025"],["30-year fixed rate mortgage (FRM) (1)"],["Average","6.41%","","6.11%","","","","6.26%","","6.81%"],["End of period","6.49%","","6.38%","","","","6.49%","","6.77%"],["10-year Treasury rate (end of period)","4.44%","","4.30%","","","","4.44%","","4.24%"],["1-month Term SOFR (average)","3.64%","","3.67%","","","","3.65%","","4.32%"]] [[/GREPCENT_TABLE]] (1)Source: Freddie Mac PMMS - Primary Mortgage Market Survey The average 30-year fixed rate mortgage rate increased 30 basis points quarter over quarter and declined 55 basis points year over year. Home refinance activity declined 23% quarter over quarter driven by the increase in the 30 year fixed rate mortgage. Home purchase activity increased 25% quarter over quarter driven by the seasonality of home buying activity. Refer to our discussion of seasonality in Key Trends and Outlook below. On a year-to-date basis (YTD), home purchase and refinance activity increased in the six months ended June 30, 2026 as compared to the same period of 2025 as homebuyers took advantage of lower rates compared to the prior year (see market interest rates graph below). 52 Our three benchmark rates above followed the decline in the federal funds rate in 2025, as displayed in the graph below. The Federal Reserve reduced its federal funds target rate a total of 50 basis points in the later part of 2025 (25 basis points in September and 25 basis points in December) resulting in increased activity in the origination market. In the second quarter of 2026, the Federal Reserve kept the federal funds rate unchanged. The 1-month SOFR largely followed the federal funds rate, as illustrated in the graph below, resulting in a 1 basis point decline (end of period) in the second quarter of 2026 as compared to a 2 basis points decline in the first quarter of 2026. The average 1-month SOFR declined 3 basis points quarter over quarter and declined 67 basis points year over year. As further illustrated in the below graph, the 10-year Treasury rate increased (14 basis points) in the second quarter of 2026 compared to an increase of 12 basis points in the first quarter of 2026, and increased 26 basis points for the six months ended June 30, 2026 compared to a decrease of 34 basis points during the same period of 2025. The 30-year fixed rate mortgage rate and the 10-year Treasury rate do not necessarily move in parallel. If the 10-year Treasury rate remains flat and the 30-year fixed mortgage rates decline this is referred to as mortgage spread tightening and may stimulate mortgage activity beyond the 10-year Treasury rate. The following graph compares market interest rates over the current and comparative periods: Another key driver of our Originations business is the overall mortgage origination market volume, that, in addition to interest rates, is sensitive to home sales and home prices and other macroeconomic conditions, such as gross domestic product and unemployment. We source a large part of our Originations [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/873860/000162828026008625/ocn-20251231.htm Complete FY 2025 MD&A: /company/ONIT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-17 Report date: 2025-12-31 ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in millions, including for charts, except per share amounts and unless otherwise indicated) The Management’s Discussion and Analysis of Financial Condition and Results of Operations section of this Form 10-K generally discusses 2025 and 2024 items and provides year-to-year comparisons between 2025 and 2024. Discussions of year-to-year comparisons between 2024 and 2023 are not included in this Form 10-K and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 21, 2025. OVERVIEW General We are a leading non-bank mortgage servicer and originator providing solutions through our primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH is one of the largest non-bank servicers in the country based on UPB, focused on delivering a variety of servicing and lending programs. PHH is also one of the largest correspondent lenders in the U.S. based on origination UPB. Liberty is one of the nation’s largest reverse mortgage lenders and servicers based on origination and securitization UPB, dedicated to education and providing loans that help customers meet their personal and financial needs by drawing upon their home equity. We serviced or subserviced 1.4 million loans with a total UPB of $328.3 billion on behalf of more than 3,900 investors and 119 subservicing clients as of December 31, 2025. We service all mortgage loan classes, including conventional, government-insured, non-Agency, small-balance commercial and multi-family loans. Our Originations business is part of our balanced business model to generate gains on loan sales and profitable returns, and to support the replenishment and the growth of our servicing portfolio. Through our retail, correspondent and wholesale channels, we originate and purchase conventional and government-insured forward and reverse mortgage loans that we sell or securitize on a servicing retained basis. In addition, we grow our mortgage servicing volume through MSR flow purchase agreements, Agency Cash Window and co-issue programs, bulk MSR purchase transactions, and subservicing agreements. 48 Volume Overview The table below summarizes the new volume of Originations by channel during 2025, compared with the volume of the two preceding years. The volume of Originations is a key driver of the profitability of our Originations segment, along with margins, and also a key driver of the replenishment and growth of our Servicing segment. In 2025, we added $84.8 billion of new volume, with $33.3 billion of subservicing additions, $42.7 billion of new Originations production and $8.8 billion bulk acquisitions, as further detailed in the below table. [[GREPCENT_TABLE]] [["$ In billions","UPB","","$ Change"],["","Years Ended December 31,","","2025 vs 2024","","2024 vs 2023"],["","2025","","2024","","2023"],["Mortgage servicing originations"],["Retail - Consumer Direct MSR (1)","$","1.9","","$","0.9","","$","0.4","","$","1.0","","$","0.5"],["Correspondent MSR (1)","22.3","","16.1","","12.2","","6.2","","4.0"],["Flow and Agency Cash Window MSR purchases (2)","17.8","","11.9","","9.1","","5.9","","2.8"],["Reverse mortgage origination (3)","0.6","","0.8","","0.7","","(0.1)","","0.1"],["Total Originations production","42.7","","29.7","","22.3","","13.0","","7.4"],["Bulk MSR purchases (2)","8.8","","10.9","","0.5","","(2.1)","","10.4"],["Total servicing additions","51.5","","40.6","","22.8","","10.9","","17.9"],["Interim forward subservicing","12.9","","7.9","","6.8","","5.0","","1.1"],["Other new subservicing","20.4","","37.0","","20.8","","(16.6)","","16.2"],["Total subservicing additions (4)","33.3","","44.9","","27.6","","(11.6)","","17.3"],["Total servicing and subservicing UPB additions","$","84.8","","$","85.5","","$","50.4","","$","(0.8)","","$","35.1"]] [[/GREPCENT_TABLE]] (1)Represents the UPB of loans that have been originated or purchased (funded) during the respective periods and for which we recognize a new MSR on our consolidated balance sheets upon sale or securitization. (2)Represents the UPB of loans for which the MSR is purchased. (3)Represents the UPB of reverse mortgage loans that have been securitized on a servicing retained basis. The loans are recognized on our consolidated balance sheets under GAAP without any separate recognition of MSRs. (4)Includes interim subservicing, including the volume of UPB associated with short-term interim subservicing for certain clients as a support to their originate-to-sell business. 49 The following table summarizes the average volume of our Servicing segment in 2025, compared with the two preceding years. The average servicing volume is a key driver of the profitability of our Servicing segment. The relative weight of performing and delinquent loans or servicing and subservicing also drive the amount and timing of gross revenue and expenses. In 2025, our average total servicing and subservicing UPB increased $12.2 billion, or 4.1%, net of runoff and sales, primarily driven by an $19.2 billion increase in our Owned MSR, partly offset by a $6.0 billion decline in subservicing. For comparison purposes, the total estimated industry mortgage debt outstanding increased 2.2% in 2025 as compared to the prior year (source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of January 21, 2026). [[GREPCENT_TABLE]] [["$ in billions","Average UPB","","% Change"],["","Years Ended December 31,","","2025 vs 2024","","2024 vs 2023"],["","2025","","2024","","2023"],["Owned MSR","$","142.3","","","$","123.0","","","$","123.8","","","15.6%","","(0.6)%"],["MSR transferred to MSR capital partners (1)","39.5","","","43.5","","","78.2","","","(9.2)%","","(44.4)%"],["Subservicing (including reverse subservicing)","117.2","","","123.2","","","81.7","","","(4.9)%","","50.8%"],["Reverse mortgage loans and other (2)","12.8","","","9.9","","","8.7","","","29.3%","","13.8%"],["Total servicing and subservicing UPB (average)","$","311.7","","","$","299.6","","","$","292.4","","","4.1","%","","2.5","%"]] [[/GREPCENT_TABLE]] (1)MSRs sold or transferred to MSR capital partners with subservicing retained and that do not qualify for derecognition / sale accounting. Reported as MSR at fair value on our consolidated balance sheet along with an associated Pledged MSR liability, economically deemed as subservicing relationship, (2)Reverse mortgage loans and other servicing (including whole loans) carried on balance sheet. As of December 31, 2025 and 2024, the total servicing and subservicing UPB amounted to $328.3 billion and $301.7 billion, respectively, a net increase of $26.6 billion or 9%. Market Update The following table presents key market interest rates which are important drivers of our businesses. As further discussed, the 30-year fixed rate mortgage is a key driver of Originations volume and prepayments in Servicing, the 10-year Treasury rate is a key benchmark for MSR valuation and hedging activities, and the 1-month SOFR is a key benchmark for the profitability of our Servicing segment (including float earnings and asset-backed financing cost). [[GREPCENT_TABLE]] [["","Years Ended December 31,"],["","2025","","2024","","2023"],["30-year fixed rate mortgage (FRM) (1)"],["Average","6.60%","","6.72%","","6.80%"],["End of period","6.15%","","6.85%","","6.61%"],["10-year Treasury rate (end of period)","4.18%","","4.58%","","3.88%"],["1-month Term SOFR (average)","4.21%","","5.11%","","5.07%"]] [[/GREPCENT_TABLE]] (1)Source: Freddie Mac PMMS - Primary Mortgage Market Survey Our three benchmark rates above have followed the decline in the federal funds rate in 2025, as displayed in the below graph. The Federal Reserve reduced its federal funds target rate a total of 50 basis points in the later part of 2025 (25 basis points in September and 25 basis points in December). The 30-year fixed rate mortgage declined 70 basis points (end of period) and average 30-year fixed rate mortgage rate declined by 12 basis points in 2025 vs 2024 resulting in increased activity in the origination market. Similarly, the 10-year Treasury rate declined by 40 basis points year over year, driving MSR fair values down. The average 1-month term SOFR declined by 90 basis points vs. 2024. In 2024, the average 30-year fixed rate mortgage rate remained mostly flat (down 8 basis points vs. 2023) resulting in a continued depressed origination market due to borrower affordability. The Federal Reserve reduced its federal funds target rate a total of 1 percentage point between September and December 2024 (50-basis point reduction in September and two consecutive 25-basis point reductions in November and December). Despite the Federal Reserve actions the 10-year Treasury rate increased by 70 basis points year over year, driving MSR fair values up. The average 1-month term SOFR remained flat (up 4 basis points vs. 2023) following the Federal Reserve respective actions in 2023 and 2024, as illustrated in the below graph. 50 The following graph compares market interest rates over the current and comparative periods: Another key driver of our Originations business is the overall mortgage origination market volume, that, in addition to interest rates, is sensitive to home sales and home prices and other macroeconomic conditions, such as gross domestic product and unemployment. We source a large part of our Originations volume from Correspondent lenders and the industry volume is a relevant benchmark. The following graphs present the industry origination volumes (in $ billions, average of the MBA and Fannie Mae data) in the current and comparative periods: Source: MBA Mortgage Finance Forecast as of January 21, 2026 and Fannie Mae Housing Forecast as of January 13, 2026. In $ billions. 51 The average industry volume grew 18% in 2025 as compared to the prior year, driven by higher refinance originations as borrowers responded to favorable interest rates movements. Comparatively, our Originations volume growth (funded volume of Correspondent and Consumer Direct) outpaced the industry for the years presented, as summarized below: [[GREPCENT_TABLE]] [["","2025 vs 2024","","2024 vs 2023"],["Comparative Origination Volume Growth"],["Industry (see above)","18%","","14%"],["Onity","42%","","36%"]] [[/GREPCENT_TABLE]] Financial Highlights Results of operations for 2025 •Net income attributable to common stockholders of $185 million, or $23.07 per share basic and $21.46 diluted •Servicing and subservicing fee revenue of $857 million, with $328 billion total servicing and subservicing UPB •Originations gain on sale of $97 million •$13 million MSR valuation gain attributable to input and assumption changes, net of hedging Financial condition at the end of the year 2025 •Stockholders’ equity of $628 million, or $73.69 book value per common share •MSR investment of $2.8 billion •Total liquidity of $205 million, with cash position of $181 million •Total assets of $16.2 billion Business Strategy We established the following strategy to deliver sustainable profitability and create long-term value for all stakeholders: •Balance and diversification: Maintain a scale position in origination and servicing to address market-cycle opportunities; •Prudent capital-light growth: Emphasize capital-light subservicing to drive servicing portfolio UPB growth and expand higher margin products and origination channels to drive accretive MSR investments; •Industry-leading cost structure: Achieve industry cost leadership through continuous cost and process improvement, optimizing global operations and technology, and drive innovation, including artificial intelligence based solutions; •Top-tier operating performance and capabilities: Deliver industry top-tier servicing operatio [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/ONIT/mda/fy2025/ All MD&A years: /company/ONIT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/ONIT/mda/fy2024/): filed 2025-02-21; accession 0001628280-25-007126 (https://www.sec.gov/Archives/edgar/data/873860/000162828025007126/ocn-20241231.htm) - [FY 2023 MD&A](/company/ONIT/mda/fy2023/): filed 2024-02-27; accession 0001628280-24-007261 (https://www.sec.gov/Archives/edgar/data/873860/000162828024007261/ocn-20231231.htm) - [FY 2022 MD&A](/company/ONIT/mda/fy2022/): filed 2023-02-28; accession 0001628280-23-005598 (https://www.sec.gov/Archives/edgar/data/873860/000162828023005598/ocn-20221231.htm) - [FY 2021 MD&A](/company/ONIT/mda/fy2021/): filed 2022-02-25; accession 0001628280-22-003998 (https://www.sec.gov/Archives/edgar/data/873860/000162828022003998/ocn-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6162 Mortgage Bankers & Loan Correspondents) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [M2SL](/indicator/M2SL/): M2 - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). 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