Overview
- The company reported net income of $18.7 million and adjusted income of $31.5 million, with record funded volume of $11.9 billion driven by an 85% consumer‑direct recapture rate.
- Rithm Capital issued a non‑renewal for its subservicing agreement, with the portfolio slated to transfer in the first quarter and roughly $8.5 billion in unpaid principal balance requiring trustee and other consents.
- The returned pool is a low‑margin set of pre‑2008 low‑balance subprime loans that drives over half of Onity’s delinquencies and represented 4.9% of adjusted third‑quarter revenue.
- Onity projects $32 billion of servicing additions in the second half, ended the quarter with about $312 billion average servicing UPB, and reported MSR fair value of $2.76 billion alongside improving delinquency metrics.
- Reverse originations fell to $143 million but margins widened to 446 basis points, producing a modest profit, and shares rose about 7% intraday after results were released.