Onity Group raises $200M in debt offering

"The annual outlook reflects the release of a deferred tax valuation allowance of $102 million to $122 million. That's partially offset by a $13 million to $15 million loss in its servicing segment tied to the federal government shutdown and changes to the Federal Housing Administrations loan modification program, the company reported. On the originations side, Onity estimated total funded loan volume of $14 billion in the fourth quarter and $43 billion for the full year."

"Consumer direct volume which the company uses as a proxy for refinance recapture totaled $800 million for the quarter and $1.9 billion for the year. Its servicing portfolio averaged $323 billion in unpaid principal balance during the quarter. In November, Onity announced the sale of $9.6 billion in mortgage servicing rights (MSRs) to Finance of America, a transaction that will result in PHH and Liberty exiting the reverse mortgage originations business. The deal is expected to close in the first quarter of 2026."

A deferred tax valuation allowance of $102 million to $122 million was released, partially offset by a $13 million to $15 million servicing loss tied to the federal government shutdown and FHA loan modification changes. Onity estimated total funded loan volume of $14 billion in the fourth quarter and $43 billion for the full year. Consumer direct volume totaled $800 million for the quarter and $1.9 billion for the year. The servicing portfolio averaged $323 billion in unpaid principal balance during the quarter. Onity announced a $9.6 billion sale of MSRs to Finance of America, with closing expected in the first quarter of 2026. Net proceeds from a debt offering will be used for general corporate purposes, including repayment of MSR-related indebtedness. PHH Mortgage Corp. and PHH Asset Services will guarantee senior notes due in 2029, offered at 103.25% of principal with an effective yield of 8.515%, forming a single series with $500 million issued in November.

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