"The company essentially broke even in reverse originations during Q3 2025, posting a $1 million profit. Meanwhile, Onity's reverse servicing segment recorded $4 million in adjusted pretax income, a rebound from a $3 million loss in Q2 2025 but down from a $10 million gain in Q3 2024. Reverse originations maintained profitability with higher margins on lower volume, Sean O'Neil, Onitys chief financial officer, said during the company's third-quarter earnings call on Thursday morning."
"The company's owned reverse servicing portfolio stood at $11 billion at the end of Q3 2025, up from $8 billion a year prior. On average, its reverse owned and subserviced portfolio averaged $19 billion in unpaid principal balance (UPB), accounting for about 6% of Onity's total book value. According to the company, reverse mortgages provide upside potential if rates decline."
"They also serve as a cost-efficient hedge to its forward mortgage servicing portfolio, and they generate liquidity and accretive earnings through securitizations. They also offer a one-stop solution for correspondent clients that offer both forward and reverse products. Across all business lines, Onity's total average servicing portfolio stood at $311.5 billion in UPB at the end of Q3 2025, up from $304.2 billion in the same period last year, with more than half in owned servicing."
Reverse originations broke even in Q3 2025 with a $1 million profit and remained profitable via higher margins on lower volume. Reverse servicing posted $4 million in adjusted pretax income, recovering from a Q2 loss but below the prior-year gain. Owned reverse servicing increased to $11 billion year-over-year. Reverse mortgages offer upside if rates fall, act as a hedge to forward servicing, generate liquidity through securitizations, and support correspondent clients. Total average servicing UPB reached $311.5 billion, producing $31 million in adjusted pretax income, and the company ended a $33 billion Rithm Capital subservicing agreement mostly composed of pre-2008 subprime loans.
Read at www.housingwire.com
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