Onity Group Inc. · NYSE:ONIT

Onity — Sidoti Small Cap Conference (March 2025)

40 slides from Onity's conference presentation, Mar 20, 2025

1. Slide 1: Sidoti Small Cap Conference

   Sidoti Small Cap Conference Glen Messina Chair, President, and Chief Executive Officer Sean O’Neil Executive Vice President and Chief Financial Officer March 20, 2025 © 2025 Onity Group Inc. All rights reserved.

2. Slide 2: Disclaimer

   Disclaimer FORWARD-LOOKING STATEMENTS NON-GAAP FINANCIAL MEASURES This presentation contains forward-looking statements within the on our business and operations; the impact of our rebranding initiative; This presentation contains references to adjusted pre-tax income (loss) meaning of Section 27A o

3. Slide 3: Investment Highlights

   Investment Highlights Top 10 nonbank mortgage company with increasing market position Low-cost provider delivering top-tier operating performance Track record of driving organic growth by winning new clients Profitability comparable to peers with a more attractive valuation Projected industry origin

4. Slide 4: Onity is a leading nonbank mortgage company with increasing market position

   Onity is a leading nonbank mortgage company with increasing market position Nonbanks originate roughly 65% of all mortgages and service more than 50% of outstanding mortgage balances (a) Servicing Originations Rank(b) Rank(b) Q2’21 2024 Q2’21 2024 Total Servicing #11 #8 Correspondent #11 #7 Subservi

5. Slide 5: Balanced and diversified business performs through interest rate cycles

   Balanced and diversified business performs through interest rate cycles Total business delivering increased profitability Diverse capabilities create multiple Adjusted Pre-tax Income(a) growth opportunities 200 Origination & Servicing & 31 Replenishment Asset Management 145 Correspondent & Owned & C

6. Slide 6: A low-cost provider delivering top-tier operating performance

   A low-cost provider delivering top-tier operating performance Competitive Cost Structure Recognized Top-Tier Performance FY’23 fully-loaded cost per loan(a) Awarded for 4 Onity Servicing vs Large vs Large Consecutive Years Cost Per Loan Nonbanks Banks Awarded for 2020-2022 and Performing 18% 33% in

7. Slide 7: 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) 1,375 125 300 110 75 56 199 167 41 637 41 47 120 18 24 3 27 10

8. Slide 8: High performing recapture platform more than doubled volume

   High performing recapture platform more than doubled volume and is closing the gap to industry best practice for third party originators Consumer Direct Volume up 2.5x YoY How we are driving results ✓ Investing in technology 905 • Enabling efficiency, timeliness and cost savings 357 • Enhancing the

9. Slide 9: 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 1.48x 1.39x 2024 actuals 2025 company guidance 20% 17% 16-20% 0.97x 15-19% 16-18% 16% 14% 0.57x N/A IMB A IMB B IMB C ON

10. Slide 10: Projected industry origination volume and product expansion opportunities provide tailwinds

    Projected industry origination volume and product expansion opportunities provide tailwinds for future growth Mortgage originations market forecasted Meaningful potential 2nd lien opportunity in to rise 14% FY’25 vs FY’24(a) our owned servicing portfolio Estimated UPB in $B • 96k borrowers with > $3

11. Slide 11: 2025+ operating priorities aligned with our strategy to create value

    2025+ operating priorities aligned with our strategy to create value Strategy Balance and Diversification | Prudent Capital-Light Growth | Industry-Leading Cost Structure Top-Tier Operating Performance and Capabilities | Dynamic Asset Management Operating Priorities Accelerate Organic Differentiate

12. Slide 12: Onity Financial Highlights

    Onity Financial Highlights © 2025 Onity Group Inc. All rights reserved. 12

13. Slide 13: Reached 11-year high for full-year GAAP Net Income

    Reached 11-year high for full-year GAAP Net Income with Adjusted Pre-tax Income at highest point since 2018 PHH acquisition FY’24 Highlights Trend vs FY’23 GAAP Net GAAP $33M Income* 8% ROE(b) Diluted Book Value $4.13 EPS $56 Per Share(c) Adjusted Adjusted $90M PTI(a) 20% ROE(d) Servicing Servicing

14. Slide 14: Servicing replenishment and growth mainly through Correspondent and Co-Issue

    © 2 0 2 4 O Servicing replenishment and growth mainly through Correspondent and Co-Issue n i t y Funded Volume & Adjusted Revenue(a) Margin by Channel(b) G r o 29.6B 29.7B Forward Correspondent & Co-Issue (B2B) u p Primarily origination channel drives servicing I n portfolio growth through MSR purch

15. Slide 15: Origination volume up 12% quarter-over-quarter

    Origination volume up 12% quarter-over-quarter, overcoming Q4 seasonality and exceeding industry growth(a) B2B Volume Consumer Direct Volume Reverse Volume up 11% up 64% up 9% 9.0B 394M 214M 8.1B 197M 5.3B 176M 241M 339 344 344 22 317 314 21 21 93M 286 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24

16. Slide 16: Highly attractive servicing portfolio drives robust cash flow

    © 2 0 2 4 Highly attractive servicing portfolio drives robust cash flow O n i t y G r o u p $302B total servicing UPB at year-end ‘24 Adjusted servicing revenue(a) I n c . Advancing requirements are highly ($M) 205 201 A Subservicing 53% limited with advances in some cases 185 186 189 192 188 l carr

17. Slide 17: Value proposition for integrated Reverse platform

    Value proposition for integrated Reverse originator, servicer and subservicer platform Strong contributor to profitability ✓ Delivers robust and consistent profitability Adjusted Pre-Tax Income(a) ✓ Creates upside potential on originations market if rates decline ($M) FY’22 FY’23 FY’24 Servicing 11

18. Slide 18: Strategic transactions to significantly strengthen balance sheet

    Successfully executed strategic transactions to significantly strengthen balance sheet while maintaining liquidity • Issued new $500M 5-year high-yield debt Debt to Equity 24% Ratio(a) 2.96:1 vs YE’23 • Extinguished intermediate-term more expensive corporate debt at parent company YE’24 • Reduced an

19. Slide 19: Strong equity to assets ratio – reverse mortgage assets distort balance sheet

    Strong equity to assets ratio – reverse mortgage assets distort balance sheet December Pledged Reverse GNMA All Assets 31, 2024 MSR mortgages EBO others Cash 185 185 Equity to Assets(a) Loans 12,415 10,872 1,543 Mortgage servicing rights (MSRs) 2,466 584 1,883 Advances 577 577 Other assets 792 412 3

20. Slide 20: 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

21. Slide 21: First Quarter 2025: Preliminary Update of Financial and Operational Performance

    First Quarter 2025: Preliminary Update of Financial and Operational Performance We expect to exceed full-year 2025 adjusted ROE guidance of 16-18% in the first quarter (a) • Reaffirming full-year adjusted ROE guidance and all other full-year guidance provided in the fourth quarter • Our balanced bus

22. Slide 22: Looking ahead to 2025, expect increasing returns

    Looking ahead to 2025, we expect successful execution of our strategy to generate increasing returns Strategy Financial Objectives Full-Year 2025 Guidance(b) ❖ Balance and diversification ❖ Sustain Adjusted Pre-tax ➢ Adjusted ROE(c) of 16-18% Income(a) performance ❖ Prudent capital-light growth ➢ In

23. Slide 23: Well-positioned to grow earnings in 2025 and beyond

    Well-positioned to grow earnings in 2025 and beyond Balanced and diversified model performs through interest rate cycles Capital-light strategy fuels growth Customer-first focus supported by innovative technology solutions Cost-effective, technology enabled, global servicing platform Experienced lea

24. Slide 24: Appendix | Mortgage Basics

    Appendix | Mortgage Basics © 2025 Onity Group Inc. All rights reserved. 24

25. Slide 25: Nonbank residential mortgage business is a virtuous revenue cycle

    Nonbank 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)(a) At

26. Slide 26: Residential mortgage loans 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

27. Slide 27: 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

28. Slide 28: Mortgage Servicing Right (MSR) is the present value of future income streams

    Mortgage Servicing Right (MSR) is the present value of future income streams MSR Fundamentals • MSR value is future cash flow of all revenue earned and expenses incurred servicing a loan, discounted at market rate. • Revenues are earned through an interest only (IO) strip when borrowers make payment

29. Slide 29: Originations and Servicing provide balanced earnings through interest rate cycles

    Originations and Servicing provide balanced earnings through interest rate cycles Adjusted Pre-tax Income(a) Low Interest Rate High Interest Rate 200 Environment Environment Originations Servicing 31 147 (0) 169 More Less 147 Originations ($M) originations originations 30 8 23 FY'22 FY'23 FY'24 30yr

30. Slide 30: Appendix | Results & Reconciliations

    Appendix | Results & Reconciliations © 2025 Onity Group Inc. All rights reserved. 30

31. Slide 31: Scale and diligent cost management improving operating efficiency

    Scale and diligent cost management improving operating efficiency Originations Servicing 50 94% 250 40 200 49% 66% 68% 30 150 56% 52% 52% 20 100 30% 31% 28% 28% 26% 10 50 0 0 ($M) Q2'22 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 ($M) Q2'22 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Efficiency Ratio = Adjusted Operating Expen

32. Slide 32: Condensed Consolidated Balance Sheets

    Condensed Consolidated Balance Sheets Assets December 31, September 30, December 31, (Dollars in millions) 2023 2024 2024 Cash and cash equivalents 202 202 185 Restricted cash 54 78 81 Mortgage servicing rights (MSRs), at fair value 2,272 2,224 2,466 Advances, net 679 523 577 Loans held for sale, at

33. Slide 33: Condensed Balance Sheet Breakdown

    Condensed Balance Sheet Breakdown Assets December 31, Rithm, MAV & other Reverse GNMA All (Dollars in millions) 2024 pledged MSR mortgages EBO others Cash and cash equivalents 185 185 Restricted cash 81 81 Mortgage servicing rights (MSRs), at fair value 2,466 584 1,883 Advances, net 577 577 Loans he

34. Slide 34: Condensed Consolidated Statement of Operations

    Condensed Consolidated Statement of Operations Year Ending Year Ending Year Ending (Dollars in millions) December 31, 2022 December 31, 2023 December 31, 2024 Revenue Servicing and subservicing fees 863 947 832 Gain on reverse loans held for investment and HMBS-related borrowings, net 36 47 42 Gain

35. Slide 35: 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

36. Slide 36: Notables and Adjusted Pre-tax Income (Loss) Calculation

    Notables and Adjusted Pre-tax Income (Loss) Calculation (Dollars in millions) Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 FY’21 FY’22 FY’23 FY’24 I Reported net income (loss) (47) 30 11 21 (28) 18 26 (64) 34 A Income tax benefit (expense) (2) (2) (3) (6) 6 22 1 (6) (5) II Reported pre-tax income (loss) [ I – A ]

37. Slide 37: ROE Calculations

    ROE Calculations (Dollars in millions) Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 FY’21 FY’22 FY’23 FY’24 I Reported net income (loss) (47) 30 11 21 (28) 18 26 (64) 34 A Preferred stock dividend - - - - (1) - - - (1) II Reported net income (loss) attributable to (47) 30 11 21 (29) 18 26 (64) 33 common stockholde

38. Slide 38: Q4'24 P&L GAAP to Adjusted Bridge

    Q4’24 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 194 (30) 8 28 (13) 188 MSR Valuation Adjustments, net (26) 0 (4) (12) (42) Operating

39. Slide 39: End Notes

    End Notes SLIDE 36 SLIDE 36 cont. a) MSR valuation adjustments that are due to changes in market interest i) Certain previously presented notable categories with nil numbers for rates, valuation inputs or other assumptions, net of overall fair value each period shown have been omitted gains / (losse

40. Slide 40: Customer first. Better together. We say. We do.

    Customer first. Better together. We say. We do.

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