Onity ONIT

Onity Group Inc. is a financial services company that services and originates both forward and reverse mortgage loans through its primary brands PHH Mortgage and Liberty Reverse Mortgage. The company operates servicing and subservicing portfolios for residential mortgage loans, including owned mortgage servicing rights and third party subservicing arrangements. It also originates mortgage loans that are sold or securitized to generate servicing rights, with a focus on replenishing its servicing portfolio and achieving profitable growth.

The company generates revenue primarily from servicing fees earned on its owned mortgage servicing rights and subservicing contracts, which are typically a fixed percentage of the unpaid principal balance of the loans serviced. Additional servicing revenue comes from ancillary fees such as late fees and modification fees. In the Originations segment, revenue is derived from gains on loan sales when originated mortgages are sold or securitized in the secondary market, as well as from fees associated with mortgage loan purchases and MSR acquisitions. Subservicing activities also produce a steady stream of fees based on the unpaid principal balance of the loans serviced on behalf of other MSR owners.

The company operates through the following segments: Servicing, Originations, and Corporate.

• Servicing: This segment includes the company’s owned mortgage servicing rights portfolio and its subservicing business, handling forward and reverse mortgage loans, managing tax and insurance escrow accounts, processing delinquent and foreclosure situations, making servicing advances, and providing master servicing and special servicing functions for investors.

• Originations: This segment focuses on originating forward and reverse mortgage loans through retail, consumer direct, correspondent, and wholesale channels, purchasing mortgage servicing rights via flow agreements, bulk purchases, and Agency Cash Window programs, and generating revenue from gains on loan sales and fees related to loan purchases and MSR acquisitions.

• Corporate: This segment encompasses the company’s executive, finance, legal, risk management, technology, and administrative functions that support the operating segments, provide capital allocation oversight, and manage overall corporate strategy and compliance.

Onity Group Inc. holds a leading position in the U. S. mortgage servicing market, recognized as one of the top non bank servicers with significant scale in both forward and reverse loan servicing. The company competes against large bank servicers, independent non bank servicers, mortgage originators, and real estate investment trusts, all of which operate in a highly fragmented and competitive environment. Its competitive advantages stem from a focus on price competitiveness, strong operating performance, high service quality, and robust customer satisfaction ratings. Onity leverages proprietary technology, including self service portals and artificial intelligence tools, to anticipate borrower needs and improve delinquency management. Its long standing Asia Pacific operations provide cost efficient processing capabilities, and consistent recognition from agencies such as Fannie Mae’s STAR award, Freddie Mac’s SHARP award, and HUD’s Tier 1 servicer ranking reinforce its reputation for excellence.

The company’s customer base consists of institutional investors such as government sponsored enterprises, Ginnie Mae, non Agency RMBS trusts, and other major owners of mortgage servicing rights, as well as homeowners who obtain forward and reverse mortgage loans through its origination channels. Notable specific clients include Rithm, which accounted for approximately 10% of the unpaid principal balance of the servicing and subservicing portfolio as of December 31 2025, and Oaktree’s MAV vehicle, which represented a substantial portion of the subservicing book. Additionally, Onity services loans on behalf of various large financial institutions that purchase or hold MSRs through Agency and non Agency securitization structures.