Onity Group Inc. reported a net income of $22.1 million, or $2.68 per share, for the first quarter of 2025, reflecting a decrease from the $30.1 million, or $3.91 per share, recorded in the same period last year. Total revenue for the quarter reached $249.8 million, an increase of 4.4% compared to $239.1 million in the first quarter of 2024. The growth in revenue was primarily driven by a $23.6 million increase in gains on reverse loans held for investment and HMBS-related borrowings, which benefited from a decline in market rates. However, the company experienced a $38.9 million loss in MSR valuation adjustments, a significant increase from the $11.6 million loss reported in the prior year, largely due to changes in interest rates.
In terms of operational metrics, Onity serviced approximately 1.4 million loans with a total unpaid principal balance (UPB) of $304.6 billion as of March 31, 2025. This represents a slight increase from $301.7 billion at the end of 2024. The company’s average servicing UPB rose by 7% quarter-over-quarter, contributing to a 4% increase in servicing and subservicing fees, which totaled $203.3 million. The number of employees at Onity was approximately 4,200, with a significant portion based in India and the Philippines, supporting its global operations.
Strategically, Onity has focused on expanding its servicing portfolio through various channels, including retail, correspondent, and wholesale origination. The company has also engaged in bulk MSR purchases and subservicing agreements to enhance its market position. Notably, Onity completed the acquisition of $2.9 billion in reverse mortgage assets from Waterfall Asset Management in November 2024, which is expected to contribute positively to its financial performance moving forward.
Looking ahead, Onity anticipates continued growth in its servicing and subservicing portfolio, driven by its multi-channel origination platform and strategic acquisitions. The company expects ancillary float income to align with short-term interest rates, while also preparing for potential fluctuations in the origination market due to macroeconomic conditions. The management remains cautious about the impact of interest rate changes on its financial performance, particularly regarding MSR valuations and the overall profitability of its operations.
About ONITY GROUP INC.
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