Onity Group Inc. Files Q3 2024 10-Q Report

TL;DR

**ONITY GROUP INC. (ONIT) Q3 2024 10-Q FILED. FINANCIALS OUT.**

AI Summary

Onity Group Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Ocwen Financial Corp, is based in West Palm Beach, Florida. Key financial data and operational metrics for the third quarter of 2024 are detailed within this report.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Onity Group Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the mortgage banking industry can be subject to significant market and regulatory risks.

Key Numbers

• 2024 Q3 — Reporting Period (Covers the third quarter of 2024.)
• 12/31 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st.)

Key Players & Entities

• ONITY GROUP INC. (company) — Filer
• OCWEN FINANCIAL CORP (company) — Former company name
• 20240930 (date) — Reporting period end date
• 20241107 (date) — Filing date
• WEST PALM BEACH, FL (location) — Company business address

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value ONIT New York Stock Exchange

Filing Documents

• onit-20240930.htm (10-Q) — 4060KB
• a20240930ex31.htm (EX-3.1) — 349KB
• a20240930ex42.htm (EX-4.2) — 20KB
• a20240930ex101.htm (EX-10.1) — 214KB
• a20240930ex102.htm (EX-10.2) — 64KB
• a20240930ex103.htm (EX-10.3) — 83KB
• a20240930ex104.htm (EX-10.4) — 9KB
• a20240930ex105.htm (EX-10.5) — 13KB
• a20240930ex106.htm (EX-10.6) — 166KB
• a20240930ex311.htm (EX-31.1) — 11KB
• a20240930ex312.htm (EX-31.2) — 11KB
• a20240930ex321.htm (EX-32.1) — 6KB
• a20240930ex322.htm (EX-32.2) — 6KB
• image_0.jpg (GRAPHIC) — 426KB
• image_1a.jpg (GRAPHIC) — 303KB
• onit-20240930_g1.jpg (GRAPHIC) — 72KB
• onit-20240930_g2.jpg (GRAPHIC) — 457KB
• 0001628280-24-046004.txt ( ) — 22168KB
• onit-20240930.xsd (EX-101.SCH) — 142KB
• onit-20240930_cal.xml (EX-101.CAL) — 107KB
• onit-20240930_def.xml (EX-101.DEF) — 611KB
• onit-20240930_lab.xml (EX-101.LAB) — 1053KB
• onit-20240930_pre.xml (EX-101.PRE) — 869KB
• onit-20240930_htm.xml (XML) — 4121KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements 5 Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 5 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and 2023 8 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 10 Notes to Unaudited Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 57 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 94 Item 4.

Controls and Procedures

Controls and Procedures 97

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 98 Item 1A.

Risk Factors

Risk Factors 98 Item 6. Exhibits 98

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this report, including statements regarding our financial position, business strategy and other plans and objectives for our future operations, are forward-looking statements. Forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as "expect", "believe", "foresee", "anticipate", "intend", "estimate", "goal", "strategy", "plan", "target" and "project" or conditional verbs such as "will", "may", "should", "could" or "would" or the negative of these terms, although not all forward-looking statements contain these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering forward-looking statements and should not place undue reliance on such statements. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. In the past, actual results have differed from those suggested by forward-looking statements and this may happen again. Important factors that could cause actual results to differ include, but are not limited to, the risks discussed under Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023 and the following: the timing for receipt of final regulatory approval to consummate the sale of our ownership interest in MAV Canopy HoldCo I, LLC (MAV Canopy) that invests in mortgage servicing assets through its licensed mortgage subsidiary MSR Asset Vehicle LLC (MAV); the

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS ONITY GROUP INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS (Dollars in millions, except per share data) September 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 201.6 $ 201.6 Restricted cash ($ 30.9 and $ 24.2 related to variable interest entities (VIEs)) 78.5 53.5 Mortgage servicing rights (MSRs), at fair value 2,223.6 2,272.2 Advances, net ($ 438.6 and $ 573.0 related to VIEs) 522.7 678.8 Loans held for sale ($ 1,195.5 and $ 674.2 carried at fair value) ($ 595.2 and $ 269.6 related to VIEs) 1,197.7 677.3 Loans held for investment, at fair value ($ 5.2 and $ 5.6 related to VIEs) 8,331.5 7,975.5 Receivables, net ($ 46.6 and $ 19.9 related to VIEs) 172.2 154.8 Investment in equity method investee 30.6 37.8 Premises and equipment, net 11.7 13.1 Other assets ($ 10.4 and $ 22.0 carried at fair value) ($ 44.1 and $ 18.6 related to VIEs) 95.8 106.2 Contingent loan repurchase asset 360.9 343.0 Total assets $ 13,226.7 $ 12,513.7 Liabilities and Stockholder's Equity Liabilities Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value $ 8,132.5 $ 7,797.3 Other financing liabilities, at fair value ($ 327.5 and $ 409.2 due to related party) ($ 5.2 and $ 5.6 related to VIEs) 826.2 900.0 Advance match funded liabilities ($ 376.6 and $ 498.9 related to VIEs) 377.2 499.7 Mortgage loan financing facilities, net ($ 518.7 and $ 143.4 related to VIEs) 1,355.9 710.6 MSR financing facilities, net 804.8 916.2 Senior notes, net ($ 248.2 and $ 239.7 due to related parties) 535.1 595.8 Other liabilities ($ 14.1 and $ 7.2 carried at fair value) 366.0 349.3 Contingent loan repurchase liability 360.9 343.0 Total liabilities 12,758.5 12,111.9 Commitments and Contingencies (Notes 20 and 21) Stockholders' Equity Common stock, $ .01 par value; 13,333,333 shares authorized; 7,868,458 and 7,684,401 shares issued and outstanding at Sep

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