Onity Group Announces Full-Year and Fourth Quarter 2024 Results
Onity Group (NYSE: ONIT) reported strong financial results for 2024, achieving its highest net income since 2013 at $33 million, with diluted EPS of $4.13 and ROE of 8%. The company's adjusted pre-tax income reached $90 million, resulting in adjusted ROE of 20%.
Key highlights include: total servicing additions of $86 billion, book value per share increase of $4 to $56, and corporate debt reduction of $145 million. The fourth quarter saw a net loss of $29 million due to $41 million in debt restructuring charges.
Operational achievements include: originations volume of $30 billion in 2024 (up 33% from 2023), total servicing UPB of $302 billion (up $13 billion YoY), and maintained total liquidity at $248 million. For 2025, the company increased its adjusted ROE guidance to 16-18%.
Onity Group (NYSE: ONIT) ha riportato risultati finanziari solidi per il 2024, raggiungendo il suo più alto reddito netto dal 2013 con 33 milioni di dollari, con un utile per azione diluito di 4,13 dollari e un ROE dell'8%. Il reddito ante imposte rettificato dell'azienda ha raggiunto i 90 milioni di dollari, portando a un ROE rettificato del 20%.
I punti salienti includono: aggiunte totali ai servizi di 86 miliardi di dollari, aumento del valore contabile per azione di 4 dollari fino a 56 dollari, e riduzione del debito aziendale di 145 milioni di dollari. Nel quarto trimestre si è registrata una perdita netta di 29 milioni di dollari a causa di 41 milioni di dollari in oneri di ristrutturazione del debito.
I risultati operativi includono: volume di origini di 30 miliardi di dollari nel 2024 (in aumento del 33% rispetto al 2023), totale UPB dei servizi di 302 miliardi di dollari (in aumento di 13 miliardi di dollari su base annua), e mantenimento di una liquidità totale di 248 milioni di dollari. Per il 2025, l'azienda ha aumentato le sue previsioni di ROE rettificato al 16-18%.
Onity Group (NYSE: ONIT) reportó resultados financieros sólidos para 2024, alcanzando su mayor ingreso neto desde 2013 con 33 millones de dólares, con un EPS diluido de 4.13 dólares y un ROE del 8%. El ingreso ajustado antes de impuestos de la empresa alcanzó los 90 millones de dólares, resultando en un ROE ajustado del 20%.
Los aspectos destacados incluyen: adiciones totales de servicios de 86 mil millones de dólares, aumento del valor contable por acción de 4 dólares a 56 dólares, y reducción de la deuda corporativa de 145 millones de dólares. En el cuarto trimestre, se registró una pérdida neta de 29 millones de dólares debido a 41 millones de dólares en cargos por reestructuración de deuda.
Los logros operativos incluyen: volumen de originaciones de 30 mil millones de dólares en 2024 (aumento del 33% respecto a 2023), total UPB de servicios de 302 mil millones de dólares (aumento de 13 mil millones de dólares interanual), y mantenimiento de una liquidez total de 248 millones de dólares. Para 2025, la empresa aumentó su guía de ROE ajustado al 16-18%.
온리티 그룹 (NYSE: ONIT)은 2024년 강력한 재무 결과를 보고하며, 2013년 이후 가장 높은 순이익인 3,300만 달러를 달성했습니다. 희석 주당순이익(EPS)은 4.13달러, 자기자본이익률(ROE)은 8%입니다. 회사의 조정된 세전 소득은 9천만 달러에 달하여 조정된 ROE는 20%에 이릅니다.
주요 하이라이트로는 서비스 추가 총액이 860억 달러에 달하고, 주당 장부가가 4달러 증가하여 56달러가 되었으며, 기업 부채가 1억 4,500만 달러 감소했습니다. 4분기에는 부채 재구성 비용으로 4,100만 달러가 발생하여 2,900만 달러의 순손실이 발생했습니다.
운영 성과로는 2024년 300억 달러의 신규 대출량(2023년 대비 33% 증가), 총 서비스 UPB가 3,020억 달러(전년 대비 130억 달러 증가), 총 유동성을 2억 4,800만 달러로 유지한 것이 포함됩니다. 2025년을 위해 회사는 조정된 ROE 가이드를 16-18%로 상향 조정했습니다.
Onity Group (NYSE: ONIT) a rapporté des résultats financiers solides pour 2024, atteignant son plus haut revenu net depuis 2013 à 33 millions de dollars, avec un bénéfice par action dilué de 4,13 dollars et un ROE de 8%. Le revenu avant impôts ajusté de l'entreprise a atteint 90 millions de dollars, ce qui a entraîné un ROE ajusté de 20%.
Les points forts incluent : des ajouts de services totaux de 86 milliards de dollars, une augmentation de la valeur comptable par action de 4 dollars à 56 dollars, et une réduction de la dette d'entreprise de 145 millions de dollars. Le quatrième trimestre a enregistré une perte nette de 29 millions de dollars en raison de 41 millions de dollars de charges de restructuration de la dette.
Les réalisations opérationnelles comprennent : un volume d'origination de 30 milliards de dollars en 2024 (en hausse de 33 % par rapport à 2023), un total UPB de services de 302 milliards de dollars (augmentation de 13 milliards de dollars d'une année sur l'autre) et le maintien d'une liquidité totale de 248 millions de dollars. Pour 2025, l'entreprise a relevé ses prévisions de ROE ajusté à 16-18%.
Onity Group (NYSE: ONIT) hat starke Finanzergebnisse für 2024 gemeldet und den höchsten Nettogewinn seit 2013 von 33 Millionen Dollar erzielt, mit einem verwässerten Gewinn pro Aktie von 4,13 Dollar und einer Eigenkapitalrendite (ROE) von 8%. Das bereinigte Ergebnis vor Steuern des Unternehmens belief sich auf 90 Millionen Dollar, was zu einem bereinigten ROE von 20% führte.
Die wichtigsten Highlights sind: Gesamter Servicezuwachs von 86 Milliarden Dollar, Anstieg des Buchwerts pro Aktie um 4 Dollar auf 56 Dollar und Reduzierung der Unternehmensschulden um 145 Millionen Dollar. Im vierten Quartal wurde ein Nettoverlust von 29 Millionen Dollar aufgrund von 41 Millionen Dollar an Kosten für die Schuldenumstrukturierung verzeichnet.
Zu den betrieblichen Erfolgen gehören: Ursprungsvolumen von 30 Milliarden Dollar im Jahr 2024 (33% mehr als 2023), Gesamtservicetotal UPB von 302 Milliarden Dollar (13 Milliarden Dollar mehr im Jahresvergleich) und Aufrechterhaltung einer Gesamtliquidität von 248 Millionen Dollar. Für 2025 hat das Unternehmen seine Prognose für den bereinigten ROE auf 16-18% angehoben.
- Highest net income since 2013 at $33 million
- 33% increase in originations volume to $30 billion in 2024
- Book value per share improved by $4 to $56
- Corporate debt reduced by $145 million
- Total servicing UPB increased by $13 billion to $302 billion
- Successful sale of $15 billion MSR UPB above book value
- Q4 2024 net loss of $29 million
- $41 million in debt restructuring charges
- Debt-to-equity ratio remains high at 2.96 to 1
Insights
The 2024 financial results reveal a compelling transformation story at Onity Group, marked by both operational excellence and strategic financial management. The achievement of $33 million in net income, the highest since 2013, alongside an adjusted pre-tax income of $90 million, demonstrates the company's successful execution of its business model across interest rate cycles.
The reduction of corporate debt by $145 million and improvement in the debt-to-equity ratio to 2.96:1 significantly strengthens the balance sheet. This deleveraging, combined with debt restructuring despite its short-term Q4 impact of $41 million in charges, positions the company for potentially lower interest expenses and improved financial flexibility in 2025.
Operational metrics show remarkable momentum:
- The 33% increase in originations volume to $30 billion reflects strong market positioning
- The 2.5x increase in funded recapture volume indicates effective customer retention strategies
- Total servicing UPB growth of $13 billion to $302 billion enhances recurring revenue potential
The renewal of key subservicing agreements, particularly the five-year extension with MAV and the Rithm Capital agreement through 2026, provides stable revenue visibility. The fourth consecutive HUD Tier 1 servicer rating validates operational excellence and could attract additional institutional clients.
The increased 2025 adjusted ROE guidance of 16-18% suggests management's confidence in sustaining operational improvements. The company's investment in digital capabilities, combined with its demonstrated ability to generate MSR fair value gains, positions it well for potential margin expansion in the evolving mortgage servicing landscape.
WEST PALM BEACH, Fla., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced its full-year and fourth quarter 2024 results and provided a business update.
Full-Year 2024:
- Net income attributable to common stockholders of
$33 million , highest since 2013; diluted EPS of$4.13 ; return on equity (“ROE”) of8% - Adjusted pre-tax income* of
$90 million , resulting in adjusted ROE* of20% $86 billion in total servicing additions ($47 billion in subservicing additions)- Book value per share improved
$4 year-over-year to$56 as of December 31, 2024 - Reduced corporate debt by
$145 million ; debt-to-equity ratio of 2.96 to 1
Fourth Quarter 2024:
- Net loss attributable to common stockholders of
$29 million ; diluted EPS of ($3.63) ; ROE of (25% ); includes previously disclosed$41 million of net corporate debt restructuring charges - Adjusted pre-tax income* of
$11 million , resulting in annualized adjusted ROE* of10% $25 billion in total servicing additions ($8 billion in subservicing additions)- Successfully executed planned corporate debt restructuring, closed the sale of the Company’s joint venture interest in MAV and the Waterfall asset purchase transaction
2025 Outlook:
- Increased adjusted ROE* guidance to
16% -18%
* See “Note Regarding Non-GAAP Financial Measures” below
“In 2024 we delivered powerful financial results, with net income reaching an eleven-year high, adjusted pre-tax income nearly doubling from the prior year, and adjusted ROE exceeding our guidance,” said Onity Group Chair, President and CEO Glen Messina. “The year was marked by several significant milestones, including successfully completing a series of transactions to reduce our corporate debt, lower cost and extend maturities, rebranding to Onity, and expanding our digital capabilities. Fourth quarter results were consistent with the guidance we provided at the end of the third quarter, and even with the previously disclosed debt restructuring costs, we ended the year with book value per share at
Messina continued, “Our results demonstrate that our best-in-class servicing platform and broad originations capabilities across our balanced business continued to deliver strong operating and financial performance regardless of interest rate cycles. I’d like to thank our global team and business partners who helped to enable a successful year. Looking ahead, I am confident in our strategy, team and capabilities. I believe we are well positioned to accelerate growth, improve returns and deliver substantial value to our customers, business partners and shareholders in 2025 and beyond.”
Additional Full-Year and Fourth Quarter 2024 Operating and Business Highlights
- Funded recapture volume for full-year 2024 up 2.5x over 2023; fourth quarter 2024 up 4.2x over fourth quarter 2023 and up
64% over third quarter 2024 - Originations volume of
$30 billion in 2024, up33% compared to 2023;$10 billion in fourth quarter, up72% over fourth quarter 2023 and up12% over third quarter 2024 - Total servicing UPB of
$302 billion at December 31, 2024, up$13 billion over December 31, 2023; sold$15 billion of MSR UPB servicing released above book value - Total liquidity (unrestricted cash plus available credit) maintained year-over-year at
$248 million as of December 31, 2024 - MSR fair value change, net of hedge, resulted in a net gain in 2024
- Extended subservicing agreement for existing MSR Asset Vehicle LLC (“MAV”) portfolio for an initial term of five years; renewed subservicing agreement with Rithm Capital to January 31, 2026
- Achieved HUD Tier 1 servicer rating for fourth consecutive year; recognized by 2024 Freddie Mac SHARPSM program for subservicing
Webcast and Conference Call
Onity will hold a conference call on Thursday, February 13, 2025, at 8:30 a.m. (ET) to review the Company’s full-year and fourth quarter 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.” Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at onitygroup.com under Events and Presentations. An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at onitygroup.com prior to the call. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through February 27, 2025, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11157783.
About Onity Group
Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.
Forward Looking Statements
This press release 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 typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding our ability to accelerate growth, improve returns and deliver substantial value to our customers, business partners and shareholders in 2025 and beyond. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae), including our ability to implement a cost-effective response to Ginnie Mae’s risk-based capital requirements by the extended deadline granted to us by Ginnie Mae of May 1, 2025; our ability to timely reduce operating costs, or generate offsetting revenue, in proportion to the industry-wide decrease in originations activity; the impact of cost-reduction initiatives on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock or that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity’s, our contractual counterparties’, or our vendors’ information technology or other security systems or privacy protections, including any failure to protect customers’ data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the future of our long-term relationship with Rithm Capital Corp. (Rithm); our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023 and for the year ended December 31, 2024 when available. Anyone wishing to understand Onity’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
Note Regarding Non-GAAP Financial Measures
This press release contains references to adjusted pre-tax income (loss) and adjusted ROE, both non-GAAP financial measures.
We believe these non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, these measures should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) or GAAP pre-tax ROE nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity’s reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE.
The Company has not provided reconciliations of guidance for adjusted ROE, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include the change in fair value of our net MSR exposure due to changes in market interest rates and assumptions which can vary significantly between periods and are difficult to predict in advance in order to include in a GAAP estimate.
Notables
In the table below, we adjust GAAP pre-tax income for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above.
Beginning with the three months ended December 31, 2024, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income, we changed the methodology used to calculate Other Income Statement Notables to include change in fair value due to interest rates for reverse loan buyouts (reported in gain/loss on loans held for sale, at fair value). We made this change to align with the change to our risk management approach to include changes in fair value of reverse loan buyouts due to interest rates in our MSR hedge strategy, consistent with other notables, such as Forward MSR Valuation Adjustments due to rates and assumption changes, net and Reverse Mortgage Fair Value Change due to rates and assumption changes.
Other Income Statement Notables (a component of Other Notables) for the first three quarters of 2024 have been revised from prior presentations to reflect the methodology we adopted during the fourth quarter of 2024.
| (Dollars in millions) | FY’24 | FY’23 | Q4’24 | Q3’24 | |
| I | Reported Net Income (Loss) | 34 | (64) | (28) | 21 |
| A. Income Tax Benefit (Expense) | (5) | (6) | 6 | (6) | |
| II | Reported Pre-Tax Income (Loss) [I – A] | 39 | (58) | (34) | 28 |
| Forward MSR Valuation Adjustments due to rates and assumption changes, net (a)(b) | 17 | (121) | 14 | (1) | |
| Reverse Mortgage Fair Value Change due to rates and assumption changes (b)(c) | (7) | (3) | (15) | 9 | |
| III | Total MSR Valuation Adjustments due to rates and assumption changes, net | 10 | (124) | (1) | 8 |
| Significant legal and regulatory settlement expenses | (8) | 21 | (2) | (6) | |
| Severance and retention (d) | (3) | (7) | (0) | (0) | |
| LTIP stock price changes (e) | 1 | 3 | (1) | (1) | |
| Office facilities consolidation | (0) | 0 | (0) | (0) | |
| Other expense notables (f) | (1) | 2 | (0) | 0 | |
| B. Total Expense Notables | (11) | 18 | (4) | (7) | |
| C. Gain (loss) on extinguishment of debt | (49) | 1 | (51) | 0 | |
| D. Gain on sale of MAV canopy | 14 | 14 | |||
| E. Other Income Statement Notables (g) | (13) | (2) | (3) | (5) | |
| IV | Total Other Notables [B + C + D + E] | (60) | 17 | (44) | (12) |
| V | Total Notables (h) [III + IV] | (51) | (107) | (45) | (4) |
| VI | Adjusted Pre-Tax Income (i) [II – V] | 90 | 49 | 11 | 31 |
| a) | MSR valuation adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, Rithm and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustments, net |
| b) | The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert |
| c) | FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net |
| d) | Severance and retention due to organizational rightsizing or reorganization |
| e) | Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period |
| f) | Includes costs associated with but not limited to rebranding, MAV upsize, and other strategic initiatives and transactions |
| g) | Contains non-routine transactions including but not limited to early asset retirement and fair value assumption changes on other investments recorded in other income/expense |
| h) | Certain previously presented notable categories with nil numbers for each period shown have been omitted |
| i) | Effective in Q4’24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would be |
Adjusted ROE Calculation
| (Dollars in millions) | FY’24 | FY’23 | Q4’24 | Q3’24 | |
| I | Reported Net Income (Loss) | 34 | (64) | (28) | 21 |
| II | Notable Items | (51) | (107) | (45) | (4) |
| III | Income Tax Benefit (Expense) | (5) | (6) | 6 | (6) |
| IV | Adjusted Pre-Tax Income (Loss) [I – II – III] | 90 | 49 | 11 | 31 |
| V | Annualized Adjusted Pre-tax Income [IV * 4 for qtr.] | 90 | 49 | 46 | 126 |
| Equity | |||||
| A Beginning Period Equity | 402 | 457 | 468 | 446 | |
| C Ending Period Equity | 443 | 402 | 443 | 468 | |
| D Equity Impact of Notables | 51 | 107 | 45 | 4 | |
| B Adjusted Ending Period Equity [C + D] | 493 | 509 | 488 | 472 | |
| VI | Average Adjusted Equity [(A + B) / 2] | 448 | 483 | 478 | 459 |
| VII | Adjusted ROE (a) [V / VI] | 20% | 10% | 10% | 27% |
| a) | Effective in Q4’24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would be |
Condensed Consolidated Balance Sheets (unaudited)
| Assets (Dollars in millions) | December 31, 2024 | December 31, 2023 |
| Cash and cash equivalents | 184.8 | 201.6 |
| Restricted cash | 80.8 | 53.5 |
| Mortgage servicing rights (MSRs), at fair value | 2,466.3 | 2,272.2 |
| Advances, net | 577.2 | 678.8 |
| Loans held for sale, at fair value | 1,290.2 | 677.3 |
| Loans held for investment, at fair value | 11,125.3 | 7,975.5 |
| Receivables, net | 176.4 | 154.8 |
| Investment in equity method investee | - | 37.8 |
| Premises and equipment, net | 11.0 | 13.1 |
| Other assets | 111.3 | 106.2 |
| Contingent loan repurchase asset | 412.2 | 343.0 |
| Total Assets | 16,435.4 | 12,513.7 |
| Liabilities, Mezzanine & Stockholders’ Equity (Dollars in millions) | December 31, 2024 | December 31, 2023 |
| Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 10,872.1 | 7,797.3 |
| Other financing liabilities, at fair value | 846.9 | 900.0 |
| Advance match funded liabilities | 417.1 | 499.7 |
| Mortgage loan financing facilities, net | 1,528.2 | 710.6 |
| MSR financing facilities, net | 957.9 | 916.2 |
| Senior notes, net | 487.4 | 595.8 |
| Other liabilities | 420.6 | 349.3 |
| Contingent loan repurchase liability | 412.2 | 343.0 |
| Total Liabilities | 15,942.5 | 12,111.9 |
| Mezzanine Equity | 49.9 | - |
| Stockholders’ Equity | 442.9 | 401.8 |
| Total Liabilities, Mezzanine and Stockholders’ Equity | 16,435.4 | 12,513.7 |
Condensed Consolidated Statements of Operations (unaudited)
| (Dollars in millions) | For the Years Ended | |||||
| December 31, 2024 | December 31, 2023 | |||||
| Revenue | ||||||
| Servicing and subservicing fees | 832.5 | 947.3 | ||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 42.5 | 46.7 | ||||
| Gain on loans held for sale, net | 59.0 | 40.6 | ||||
| Other revenue, net | 42.0 | 32.0 | ||||
| Total revenue | 976.0 | 1,066.7 | ||||
| MSR valuation adjustments, net | (96.2) | (232.2) | ||||
| Operating expenses | ||||||
| Compensation and benefits | 232.5 | 229.2 | ||||
| Servicing and origination | 52.3 | 57.3 | ||||
| Technology and communications | 52.9 | 52.5 | ||||
| Professional services | 52.6 | 22.3 | ||||
| Occupancy, equipment and mailing | 31.4 | 31.8 | ||||
| Other expenses | 14.7 | 19.0 | ||||
| Total operating expenses | 436.5 | 412.1 | ||||
| Other income (expense) | ||||||
| Interest income | 93.3 | 78.0 | ||||
| Interest expense | (288.9) | (273.6) | ||||
| Pledged MSR liability expense | (175.4) | (296.3) | ||||
| Gain (loss) on extinguishment of debt | (49.4) | 1.3 | ||||
| Earnings of equity method investee | 22.9 | 7.3 | ||||
| Other, net | (6.6) | 2.8 | ||||
| Other income (expense), net | (404.1) | (480.5) | ||||
| Income before income taxes | 39.3 | (58.1) | ||||
| Income tax expense | 5.3 | 5.6 | ||||
| Net Income (Loss) | 33.9 | (63.7) | ||||
| Preferred stock dividend | (0.5) | - | ||||
| Net Income (Loss) attributable to common stockholders | 33.4 | (63.7) | ||||
| Basic EPS | ( | |||||
| Diluted EPS | ( | |||||
For Further Information Contact:
Investors:
Valerie Haertel, VP, Investor Relations
(561) 570-2969
shareholderrelations@onitygroup.com
Media:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com
FAQ
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