Onity Beats Q4 and Full‑Year Earnings, Eyes Reverse MSR Sale and Non‑MTM Funding

The company seeks Ginnie Mae approval for a reverse MSR deal expected to unlock about $100 million, signaling a move to longer‑term financing to reduce mark‑to‑market risk.

Overview

Onity reported net income to common of $126 million in Q4 and $185 million for 2025, topping prior expectations and rebounding sharply from 2024.
Management said the Finance of America reverse MSR transaction remains pending Ginnie Mae approval and is expected to generate roughly $100 million in proceeds when closed.
The company plans to replace mark‑to‑market MSR bank financing with longer‑term, non‑MTM funding as capital becomes available.
CFO Sean O’Neil projected indemnifications and restructuring costs tied to the Finance of America sale and the Rithm transition in the $19 billion to $20 billion range, with a GAAP impact but not on adjusted ROE.
Guidance calls for 5%–15% servicing UPB growth including the nonrenewal of a roughly $32 billion Rithm contract, while Onity confirmed $14 million in MSR runoff tied to the 2025 shutdown and FHA rule changes that it expects to normalize by mid‑2026.