ONIT — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-11-05

• We are a leading non-bank mortgage servicer and originator providing solutions through our primary brand, Onity Mortgage Corporation (formerly PHH Mortgage Corporation). On March 23, 2026, PHH Mortgage Corporation changed its name to Onity Mortgage Corporation (OMC). Onity is one of the largest non-…

• (4)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.

• (5)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.

• A 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…

• Source: MBA Mortgage Finance Forecast as of October 11, 2026 and Fannie Mae Housing Forecast as of October 12, 2026. In $ billions.

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• 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 co…

• (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.

• 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 …

• 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) resul…

Text added vs the prior filing · source: 10-Q · 2026-11-05

• MSR valuation adjustments, net loss increased $95.7 million for the nine months ended September 30, 2026 compared to the prior year period primarily driven by an $87.8 million impact attributed to unfavorable assumption updates recognized in the nine months ended September 30, 2026 vs. favorable upd…

• •The unfavorable $38.3 million higher runoff expense is mostly due to owned MSR portfolio growth.

• •The $211.4 million increase in the gain due to input and assumption changes during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is primarily driven by the $299.3 million effect of a favorable change in market interest rates as the 10-year Treasury ra…

• •The change from a $25.9 million gain from derivatives in the nine months ended September 30, 2025 to a $242.9 million loss in the nine months ended September 30, 2026 is mainly due to the market interest rate changes noted above. During the nine months ended September 30, 2025, our HECM MSR was par…

• The table below presents the key components of operating expenses:

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• Our management-level Market Risk Committee establishes and maintains policies that govern our risk appetite and associated hedging programs, including such factors as duration and interest rate sensitivity measures, limits, targeted hedge coverage ratios, the hedge instruments that we are permitted …

• The derivative instruments are subject to margin requirements, posted as either initial or variation margin. Onity may be required to post or may be entitled to receive cash collateral with its counterparties through margin calls, based on daily value

• changes of the instruments. Changes in market factors, including interest rates, and our credit rating may require us to post additional cash collateral and could have a material adverse impact on our financial condition and liquidity.

• conditions and as we deem necessary. For example, if rates were to significantly increase, we may change our hedge profile to reduce our targeted total net exposure in upward rate scenarios, as illustrated in the below table.

• Asset value of securitized HECM loans, net of HMBS-related borrowing7 4 2 (2)(4)(8)