Onity Group Inc. · NYSE:ONIT
Onity — BofA Securities Leveraged Finance Conference 2025
41 slides from Onity's conference presentation, December 2025
Slide 1: BofA Securities Leveraged Finance Conference 2025
BofA Securities Leveraged Finance Conference 2025 Sean O’Neil Executive Vice President and Chief Financial Officer December 1-3, 2025 © 2025 Onity Group Inc. All rights reserved.
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the NON-GAAP FINANCIAL MEASURES GSEs), and the Government National Mortgage Association (Ginnie This presentation contains forward-looking statements within the meaning This presentation contains re
Slide 3: Onity is a non-bank mortgage servicer and originator
Onity is a non-bank mortgage servicer and originator NYSE: ONIT Focused on creating positive outcomes for clients, homeowners, investors and communities Services Offered Balanced Portfolio Mix Industry Rank(a) Servicing Originations Total Servicing #8 Owned Servicing and Consumer Direct, Bulk, Subse
Slide 4: Sound strategy and strong execution are delivering results
Sound strategy and strong execution are delivering results Strategy Balance and Diversification | Prudent Capital-Light Growth | Industry-Leading Cost Structure(a) Top-Tier Operating Performance and Capabilities(b) | Dynamic Asset Management Operating Priorities Differentiate Operating Elevate the C
Slide 5: The US mortgage market is large, growing, and non-banks are increasing share
The US mortgage market is large, growing, and non-banks are increasing share Total addressable market(a) for residential mortgages is large … …and projected to grow(b) Unpaid Principal Balance (UPB) of Loans $14.5T • Servicing market is expected to grow 2.5% YoY to $14.7T in 2025 and 2.5% YoY to $15
Slide 6: Why Onity and why now
Why Onity and why now Profitability comparable to peers at a more attractive valuation Balanced and diversified business built to perform through market cycles with multiple opportunities for growth Track record of increasing market position by driving organic growth and winning new clients Technolo
Slide 7: Delivered 12 straight quarters of profitable Adjusted PTI
Delivered 12 straight quarters of profitable Adjusted PTI Adjusted Pre-Tax Income(a) 35 32 31 31 30 25 25 23 21% 20 CAGR 16 15 15 11 11 10 10 6 5 4 ($M) 0 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 20% Adjusted ROE YTD 2025, above annual guidance(b) © 2025 Onity Group In
Slide 8: Profitability comparable to peers at a more attractive valuation
Profitability comparable to peers at a more attractive valuation Adjusted ROE comparable to Recent turnaround and relative size significantly larger peers drives discount to peers YTD’25 actuals(a) Updated our FY’25 guidance to exceed 16-18% range given after Q4’24 1.60x 20% 19% 15% 15% 1.09x 1.01x
Slide 9: Balanced business is delivering strong results with higher Originations profitability
Balanced business is delivering strong results with higher Originations profitability driven by lower interest rates Originations and Servicing Impact of market scenarios complement each other on profitability 184 Adjusted Pre-tax Income(a) Rates Down Rates Up 145 147 53 Originations 96 Originations
Slide 10: Originations strategy and strong execution drove record volume and profitable growth
Originations strategy and strong execution drove record volume and profitable growth Originations volume up 39% YoY, exceeding Multi-channel strategy in Originations with a industry growth of 16% focus on B2B and customer retention Originations UPB Co-Issue ✓ Consumer Direct growth driven by lower r
Slide 11: Executing accretive Reverse MSRs and Originations sale transaction with Finance of America
Executing accretive Reverse MSRs and Originations sale transaction with Finance of America to simplify our business and focus on maximizing growth Agreement includes a three-year subservicing agreement for the reverse MSRs sold Proceeds from the reverse asset sale to be redeployed into higher yieldi
Slide 12: Executing accretive transaction to sell Reverse MSRs and Originations
Executing accretive transaction to sell Reverse MSRs and Originations, simplifying our business and intensifying our focus on more profitable high-growth markets Transaction Summary(a) ❖ Selling reverse MSRs, ~40k HECM loans ($9.6B UPB)(a) ❖ We will subservice the assets sold under a three-year agre
Slide 13: Focused on accelerating subservicing growth
Focused on accelerating subservicing growth Subservicing Additions(a) Robust pipeline of subservicing opportunities UPB ✓ Active pipeline(b) of new business 32 • 9 new clients signed in FY‘25 and 6 agreements under 28 contract negotiation 21 ✓ Capitalizing on commercial expansion opportunities • UPB
Slide 14: Top-tier servicing performance delivers value for customers and investors
Top-tier servicing performance delivers value for customers and investors Top-Tier Investor Performance(a) Customer Experience(c) 4.6 4.0 Positive Experience Positive Experience Call Center Loan Boarding Commitment to Competitive Cost Technology Structure(b) Performing Loans Non-Performing Loans 55
Slide 15: Expanding our AI powered platform to grow revenue, reduce cost, and drive service excellence
Expanding our AI powered platform to grow revenue, reduce cost, and drive service excellence ONITY Robotics Natural Language Processing (NLP) Drive Cost Leadership $ Elevate the digital customer experience Power intelligent and utility communication Accelerate Revenue Growth Smarter decisions & meas
Slide 16: Capital allocation strategy focused on growth and optimizing shareholder return
Capital allocation strategy focused on growth and optimizing shareholder return ❖ Expanding products and services Prioritize ❖ Retaining more mortgage servicing rights (MSRs), targeting Organic 50/50 mix of owned and subservicing Growth ❖ Investing in advanced technology (Gen AI, machine learning) D
Slide 17: Expect to exceed Adjusted ROE guidance for 2025
Expect to exceed Adjusted ROE guidance for 2025 = confirmed guidance Financial Objectives Full-Year 2025 Guidance(b) = updated or new guidance ❖ Sustain Adjusted PTI Exceed Adjusted ROE of 16-18%(c) performance(a) Total servicing UPB growth of 5-10%(d) ❖ Maintain earnings stability High hedge effect
Slide 18: Focused on accelerating profitable growth and creating value for all stakeholders
© 2 0 2 4 Focused on accelerating profitable growth and creating value for all stakeholders O n i t y G r o ❑ Strong outlook for the year u p I n c . ❑ Balanced and diversified business built to perform through market cycles with A l multiple opportunities for growth l r i g h t s ❑ Track record of
Slide 19: Thank you. Questions?
Thank you. Questions? © 2025 Onity Group Inc. All rights reserved. 19
Slide 20: Appendix
Appendix © 2025 Onity Group Inc. All rights reserved. 20
Slide 21: Delivered 12th straight quarter of positive Adjusted Pre-tax Income
Delivered 12th straight quarter of positive Adjusted Pre-tax Income (Dollars in millions, except per share metrics) Q3’24 Q2’25 Q3’25 Adjusted pre-tax income(a) 31.5 16.4 30.9 MSR valuation adjustments due to rates 8.1 6.2 (0.0) and assumption changes, net(b) Other notables (12.0) 0.2 (7.8) Income t
Slide 22: Diversified servicing portfolio mitigates risk
Diversified servicing portfolio mitigates risk MSR to be hedged % of Servicing UPB GAAP MSR Fair Value end of Q3’25 end of period GSE MSR ~36% 2,763 Fannie 567 Subservicing Owned Servicing(a) 255 ~48% Other ~52% Subservicing Freddie 1,941 MAV ($M) Q3'25 (b) Rithm, MAV and other pledged MSR $316B Rev
Slide 23: MSR Valuation
MSR(a) Valuation as of 9/30/2024 as of 6/30/2025 as of 9/30/2025 (Dollars in millions) Total Total Total GSE Gov’t(b) Non-Agency GSE Gov’t(b) Non-Agency GSE Gov’t(b) Non-Agency Retained Retained Retained UPB 87,587 18,673 12,684 118,944 109,176 21,579 11,694 142,448 114,574 25,007 11,366 150,946 Loa
Slide 24: Managing owned MSRs to a targeted investment range
Managing owned MSRs to a targeted investment range (Dollars in billions) Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Forward Owned 122 124 124 123 124 135 141 148 Reverse Owned 8 8 8 9 11 12 12 11 MSR Investment Range Total Owned MSR Servicing(a) Avg UPB 130 132 132 132 135 147 153 159 • $115-13
Slide 25: Increasing scale and diligent cost management improving operating efficiency
Increasing scale and diligent cost management improving operating efficiency Operating Efficiency by Segment Originations Servicing(a) 60 200 50 94% 150 40 50% 61% 56% 56% 30 52% 100 45% 37% 20 34% 34% 32% 32% 50 10 0 0 ($M) Q2'22 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 ($M) Q2'22 Q3'24 Q4'24 Q1'25 Q2'25 Q3'2
Slide 26: Growth and diversification strategies diminished Rithm revenue contribution
Growth and diversification strategies diminished Rithm revenue contribution Rithm % of Total Adjusted Revenue(a) 265 236 227 225 220 8.2% 8.4% 8.0% 6.2% 4.9% ($M) 19 19 18 14 13 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Excluding Rithm Rithm Rithm Pct Above shows 100% of Rithm revenue, however ~$8.5B UPB of $33
Slide 27: Reverse benefits our balanced business model
Reverse benefits our balanced business model Reverse Combined Adjusted ✓ Creates upside potential on originations market if rates Pre-Tax Income(a) decline $38M ✓ Offers cost-efficient hedge to the forward MSR $23M $24M ✓ Creates product and service breadth for Correspondent clients who offer both f
Slide 28: Dilution controlled by Onity due to updated agreements
Dilution controlled by Onity due to updated agreements As of 9/30/25 Remaining Oaktree Warrant* Settlement Method at Onity’s discretion ONIT Share Price $39.96 Gross Shares Settlement Net Settlement in Shares Net Settlement in Cash Book Value in $M Book Value Share Count Book Value Share Count Book
Slide 29: Condensed Consolidated Balance Sheets (unaudited)
Condensed Consolidated Balance Sheets (unaudited) Assets September 30, June 30, September 30, (Dollars in millions) 2024 2025 2025 Cash and cash equivalents 202 194 173 Restricted cash 78 62 98 Mortgage servicing rights (MSRs), at fair value 2,224 2,633 2,763 Advances, net 523 461 435 Loans held for
Slide 30: Condensed Balance Sheets Breakdown
Condensed Balance Sheets Breakdown Assets September 30, Rithm, MAV & other Reverse GNMA All (Dollars in millions) 2025 unaudited pledged MSR mortgages EBO others Cash and cash equivalents 173 173 Restricted cash 98 98 Mortgage servicing rights (MSRs), at fair value 2,763 567 2,196 Advances, net 435
Slide 31: Condensed Consolidated Statements of Operations (unaudited)
Condensed Consolidated Statements of Operations (unaudited) Three months September 30, June 30, September 30, (Dollars in millions) ended 2024 2025 2025 Servicing and subservicing fees 211 211 217 Gain on reverse loans held for investment and HMBS-related 18 12 13 borrowings, net Gain on loans held
Slide 32: Note Regarding Non-GAAP Financial Measures
Note Regarding Non-GAAP Financial Measures In the following slides, we present supplemental information (including reconciliations) relating to certain illustrative adjustments to GAAP pre-tax income (loss) and GAAP pre-tax return on equity. We believe these non-GAAP financial measures provide a use
Slide 33: Notables and Adjusted Pre-tax Income (Loss) Calculation
Notables and Adjusted Pre-tax Income (Loss) Calculation (Dollars in millions) Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 I Reported net income (loss) (80) (40) 15 8 (47) 30 11 21 (28) 22 A Income tax benefit (expense) (1) (2) (1) (1) (2) (2) (3) (6) 6 13 II Reported pre-tax income (
Slide 34: Notables and Adjusted Pre-tax Income (Loss) Calculation
Notables and Adjusted Pre-tax Income (Loss) Calculation Q3’25 (Dollars in millions) Q2’25 Q3’25 FY’21 FY’22 FY’23 FY’24 9M’25 LTM I Reported net income (loss) 22 19 18 26 (64) 34 62 34 A Income tax benefit (expense) (1) (4) 22 1 (6) (5) 7 13 II Reported pre-tax income (loss) [ I – A ] 23 23 (4) 25 (
Slide 35: ROE Calculations
ROE Calculations (Dollars in millions) Q3’24 Q2’25 Q3’25 9M’25 I Reported net income 21 22 19 62 A Preferred stock dividend - (1) (1) (3) II Reported net income attributable to 21 20 18 59 common stockholders [ I + A ] III Annualized net income attributable to 86 82 71 79 common stockholders [ II *
Slide 36: Q3'25 P&L GAAP to Adjusted Bridge
Q3’25 P&L GAAP to Adjusted Bridge Rithm, MAV & MSR FV Servicing Segment Reverse Other Inter-Segment GAAP Other Pledged Reclass Adjustments Notables Reclass Adjusted (Dollars in millions) MSR Reclass Notables Revenue 233 (30) 10 (3) 1 211 MSR Valuation Adjustments, net (49) (8) 3 (54) Operating Expen
Slide 37: End Notes
End Notes SLIDE 3 SLIDE 7 cont. SLIDE 14 a) Industry rank source for total servicing: Inside Mortgage Finance Top b) Adjusted ROE Q3’25 YTD; adjusted ROE refers to annualized adjusted a) GSE Awards for last 4 years include FNMA STAR and FHLMC SHARP Primary Mortgage Servicers 2Q25 (among nonbanks onl
Slide 38: End Notes
End Notes SLIDE 17 cont. SLIDE 22 SLIDES 33 & 34 g) As a result of improving earnings and other factors, it is reasonably a) Includes owned MSRs, reverse mortgage loans (referred to as our a) MSR valuation adjustments that are due to changes in market interest possible we could release a significant
Slide 39: End Notes
End Notes SLIDES 33 & 34 cont. 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 presentati
Slide 40: Abbreviations & Definitions
Abbreviations & Definitions • 9M: First nine months of the fiscal year • FV: Fair Value • MAM: Mortgage Assets Management, LLC • Refi: Mortgage Refinance • Adj / Adjusted: Non-GAAP measure of PTI, ROE, • Fwd: Forward Mortgage • MAV: MSR Asset Vehicle, LLC (Onity subservices • Rem Term: Remaining Ter
Slide 41: Customer first. Better together. We say. We do.
Customer first. Better together. We say. We do.
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