Onity Group Reports Strong Q1 2025 Earnings

Ocwen Financial Corp ( (ONIT) ) has released its Q1 earnings. Here is a breakdown of the information Ocwen Financial Corp presented to its investors.

Onity Group Inc. is a prominent non-bank financial services company specializing in mortgage servicing and originations, operating under the brands PHH Mortgage and Liberty Reverse Mortgage. Headquartered in West Palm Beach, Florida, the company serves a diverse clientele across the United States and internationally.

In its first quarter of 2025, Onity Group reported a net income of $21 million attributable to common stockholders, with a diluted EPS of $2.50 and a return on equity (ROE) of 19%. The company also highlighted a significant increase in its book value per share, which rose to $58, marking an improvement of $2.15 year-over-year.

Key financial metrics for the quarter included an adjusted pre-tax income of $25 million, translating to an annualized adjusted ROE of 22%. The company added $17 billion in total servicing additions, with an average servicing unpaid principal balance (UPB) of $305 billion, reflecting a $13 billion increase from the previous year. Onity also achieved a 53% year-over-year growth in originations volume, reaching $7 billion, and expanded its high-margin product offerings.

Onity’s strategic initiatives, such as enhancing its home equity and proprietary reverse mortgage products, contributed to its robust performance. The company effectively managed its mortgage servicing rights (MSR) hedge strategy, minimizing fair value volatility and aligning with its operational and financial goals.

Looking ahead, Onity Group remains optimistic about its growth prospects, maintaining its 2025 adjusted ROE guidance of 16% to 18%. The company’s management expressed confidence in its ability to navigate interest rate fluctuations and economic uncertainties, focusing on balanced MSR and subservicing additions, high-margin product expansion, and improved recapture performance.