Onity Group Inc. · NYSE:ONIT
Onity — Barclays 23rd Annual Global Financial Services Conference (September 2025)
39 slides from Onity's conference presentation, Sep 9, 2025
Slide 1: Barclays 23rd Annual Global Financial Services Conference
Barclays 23rd Annual Global Financial Services Conference Glen Messina Chairman, President and Chief Executive Officer Sean O’Neil Executive Vice President and Chief Financial Officer September 9, 2025 © 2025 Onity Group Inc. All rights reserved.
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS NON-GAAP FINANCIAL MEASURES This presentation contains forward-looking statements within the the trading price of our securities or our financial condition; breach or This presentation contains references to adjusted pre-tax income (loss) meaning of Section 27A
Slide 3: Q2'25 Financials: 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 $14.4T • Servicing market is expected to grow 2.5% YoY to $14.7T in 2025 and 2.5% YoY to $15
Slide 6: Why Onity and why now
Why Onity and why now Profitability comparable to peers at a more attractive valuation Balanced and diversified business built to perform through market cycles with multiple opportunities for growth Track record of increasing market position by driving organic growth and winning new clients Technolo
Slide 7: Profitability comparable to peers at a more attractive valuation
Profitability comparable to peers at a more attractive valuation Adjusted ROE comparable to significantly Recent turnaround and relative size larger peers drives discount to peers 1H’25 actuals(a) 2025 company guidance(b) 1.96x 19% 16-20% 18% 15-19% 16-18% 17% 1.24x 14% 0.97x 0.67x N/A IMB A IMB B I
Slide 8: Balanced business designed to perform well in high and low interest rates
Balanced business designed to perform well in high and low interest rates Originations and Servicing Impact of market scenarios complement each other on profitability Adjusted Pre-tax Income(a) 40 Rates Down Rates Up 9 27 Originations Originations Forward Owned Servicing 22 31 Servicing Reverse Owne
Slide 9: Track record of driving organic growth by winning new clients
Track record of driving organic growth by winning new clients Winning new clients Growing servicing portfolio(b) Correspondent Subservicing Servicing Additions Servicing Avg and Co-Issue(a) net of bulk purchases and UPB internal sales(c) 307 1,329 122 61 110 41 28 199 154 56 44 637 18 120 24 3 32 12
Slide 10: Achieved top-tier recapture performance
Achieved top-tier recapture performance Consumer Direct funded Refinance recapture rate 1.5x industry volume up 2.4x YoY average(b) and leading peers in Q2’25 60% Q2'25 LTM Q2'25 40% 384 20% 158 ($M) 0% ICE Large Large ONIT Large Q2'24 Q2'25 Avg Nonbank 1 Nonbank 2 Nonbank 3 7.0% 6.8% ONIT includes
Slide 11: 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 55 Commitment to Competitive Cost Technology Structure(b) Performing Non-Performing Loans Loans
Slide 12: 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 13: Leveraging leading-edge technologies to create value for all stakeholders
Leveraging leading-edge technologies to create value for all stakeholders Outcomes Today’s Reality Tomorrow’s Vision ✓ Robotic Process Automation (RPA) performing 190+ $ Integrate RPA, LLMs, Drive Cost processes, completing the work of ~400 FTE and ML across all Leadership ✓ Machine Learning (ML) pr
Slide 14: 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 15: Confirmed our Adjusted ROE guidance for 2025
Confirmed our Adjusted ROE guidance for 2025 = confirmed guidance Financial Objectives Full-Year 2025 Guidance(b) = updated or new guidance ❖ Sustain Adjusted PTI(a) Adjusted ROE(c) of 16-18% performance Increase total servicing UPB 10+%(d) ❖ Maintain earnings stability High hedge effectiveness to p
Slide 16: 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 17: Thank you. Questions?
Thank you. Questions? © 2025 Onity Group Inc. All rights reserved. 17
Slide 18: Appendix | Mortgage Basics
Appendix | Mortgage Basics © 2025 Onity Group Inc. All rights reserved. 18
Slide 19: Non-bank mortgage industry: Leveraging a virtuous cycle
Non-bank mortgage industry: Leveraging a virtuous cycle Residential Mortgage Origination Quick Fact Lenders originate loans through direct-to- consumer or traditional retail or acquire loans from Subservicing smaller third-party originators has expanded Originations Securitization dramatically, Sale
Slide 20: Non-bank residential mortgage business is a virtuous revenue cycle
Non-bank residential mortgage business is a virtuous revenue cycle Revenue Streams Origination fees Gain on sale Gain on sale Servicing fees Closing costs of loan of MSR Float and other fees Retain Loan Payoff Subservicing Securitization Sell MSR Customer Creates mortgage servicing rights (MSR)* Att
Slide 21: Mortgage Servicing Rights (MSRs) are the present value of future income streams
Mortgage Servicing Rights (MSRs) are the present value of future income streams Mortgage Serving Right (MSR) Fundamentals • MSRs refer to an agreement formed when the original mortgage originator sells the rights to a mortgage servicer in exchange for the right to be the administrator of the loan an
Slide 22: Residential mortgage loans can be categorized by structure, product and investors
Residential mortgage loans can be categorized by structure, product and investors Residential Loan Type Forward Agency Forward Reverse only will securitize if Non-Agency Mortgage structured to conforms to their private label, assist seniors using standards don’t qualify for agency their home equity
Slide 23: Residential mortgage loans are categorized by delinquency status
Residential mortgage loans are categorized by delinquency status Delinquency Status Performing NPL RPL BK REO loan is current Non-Performing Re-Performing Bankruptcy Real Estate Owned <60 days past due 60+ days past due (2 or was NPL, now cured or loans in BK can be NPL property is transferred more
Slide 24: Appendix | Onity Supplemental Information
Appendix | Onity Supplemental Information © 2025 Onity Group Inc. All rights reserved. 24
Slide 25: Our competitive advantages create multiple growth opportunities
Our competitive advantages create multiple growth opportunities Origination & Servicing & • Strong client relationships and servicing track record Replenishment Asset Management Correspondent & Owned & • Deep knowledge and expertise across a spectrum of Co-Issue Subserviced mortgage products and ser
Slide 26: Achieved UPB growth QoQ and YoY, further reinforcing our growth trajectory
Achieved UPB growth QoQ and YoY, further reinforcing our growth trajectory Servicing UPB rose steadily driven Growth in MSR offsets client portfolio changes by growth in MSR and opportunistic asset management Owned Servicing Avg UPB Servicing Ending UPB 153 36 310 304 147 (6) (10) 132 (15) Opportuni
Slide 27: Originations driving consistent profitable growth
Originations driving consistent profitable growth MSR originations up 35% YoY, exceeding Multi-channel strategy in Originations with a industry growth of 23%(a) focus on B2B and customer retention 9.4 • Originations drives MSR and subservicing replenishment and growth through all market cycles consi
Slide 28: 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 29: Onity GAAP Liabilities Include Substantial Debt Related to Portfolio Activities
Onity GAAP Liabilities Include Substantial Debt Related to Portfolio Activities Assets in $M Quick Fact as of 6/30/25 Much of Onity’s balance sheet consists of non- netted assets and 3.2x 10,253 liabilities associated with Debt to Equity SUM (A) / B our portfolio activities 16,531 5,391 532 B 570 31
Slide 30: Condensed Balance Sheets Breakdown
Condensed Balance Sheets Breakdown Assets June 30, 2025 Rithm, MAV & other Reverse GNMA All (Dollars in millions) unaudited pledged MSR mortgages EBO others Cash and cash equivalents 194 194 Restricted cash 62 62 Mortgage servicing rights (MSRs), at fair value 2,633 570 2,063 Advances, net 461 461 L
Slide 31: 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 32: Notables and Adjusted Pre-tax Income (Loss) Calculation
Notables and Adjusted Pre-tax Income (Loss) Calculation (Dollars in millions) Q2’21 Q1’25 Q2’25 FY’22 FY’23 FY’24 1H’25 I Reported net income (loss) (10) 22 22 26 (64) 34 44 A Income tax benefit (expense) 12 13 (1) 1 (6) (5) 12 II Reported pre-tax income (loss) [ I – A ] (22) 9 23 25 (58) 39 32 Forw
Slide 33: ROE Calculations
ROE Calculations (Dollars in millions) Q1’25 Q2’25 1H’25 I Reported net income (loss) 22 22 44 A Preferred stock dividend (1) (1) (2) II Reported net income (loss) attributable to 21 20 42 common stockholders [ I + A ] III Annualized net income (loss) [ II * 4 for qtr.] 84 82 83 B Beginning period c
Slide 34: Q2'25 P&L GAAP to Adjusted Bridge
Q2’25 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 217 (30) 5 (1) 1 192 MSR Valuation Adjustments, net (31) (4) (6) (41) Operating Expe
Slide 35: End Notes
End Notes © 2025 Onity Group Inc. All rights reserved. 35
Slide 36: End Notes
End Notes SLIDE 3 SLIDE 9 SLIDE 11 cont. a) Industry rank source for total servicing: Inside Mortgage Finance Top a) Clients with both services are counted only once c) Positive experience scores for call center and loan boarding based on Primary Mortgage Servicers 2Q25 (among nonbanks only); indust
Slide 37: End Notes
End Notes SLIDE 27 SLIDE 32 cont. a) YoY growth of MSR originations from Q2’24 to Q2’25; YoY industry f) Contains costs associated with but not limited to rebranding, MAV growth from Q2’24 to Q2’25 using avg of data in MBA and FNMA Jul’25 upsize, costs related to the reverse subservicing acquisition
Slide 38: Abbreviations & Definitions
Abbreviations & Definitions • Adj / Adjusted: Non-GAAP measure of PTI, ROE, revenue, opex (See • HFI: Loans Held for Investment • Perf: Performing Loan slide titled “Note Regarding Non-GAAP Financial Measures”) • HMBS: Home Equity Conversion Mortgage-Backed Securities • PHH: PHH Mortgage Corporation
Slide 39: Customer first. Better together. We say. We do.
Customer first. Better together. We say. We do.
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