ONITY GROUP INC.ONIT
ONITY GROUP INC. Debt Disclosure
Note 14 — Borrowings
| Advance Match Funded Liabilities | Remaining Borrowing Capacity | Outstanding Balance at December 31, | |||||||||||||||||||||||||||
| Borrowing Type | Expected Repayment Date (1) | Uncommitted | Committed | 2025 | 2024 | ||||||||||||||||||||||||
$350 million Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2025-VF1 (2) (3) | September 2027 | $ | — | $ | 76.8 | $ | 273.2 | $ | 328.7 | ||||||||||||||||||||
$100 million Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (2) (4) | May 2027 | — | 95.5 | 4.5 | 87.8 | ||||||||||||||||||||||||
$350 million PGAF Issuer LLC - Advance Receivables Backed Notes, Series 2025-VF1 (2) (5) | May 2027 | — | 286.3 | 63.7 | — | ||||||||||||||||||||||||
$14.4 million EBO Advance facility (6) | May 2026 | 13.9 | — | 0.5 | 0.6 | ||||||||||||||||||||||||
| Total Advance match funded liabilities | $ | 13.9 | $ | 458.6 | $ | 341.9 | $ | 417.1 | |||||||||||||||||||||
Weighted average interest rate (7) | 5.81 | % | 7.25 | % | |||||||||||||||||||||||||
(1)The Expected Repayment Date of our facilities, as defined, is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance is required if the note is not renewed or extended. In certain of our advance facilities, there are multiple notes outstanding.
(2)The committed borrowing capacity under the OMART, OGAF and PGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2025, none of the remaining borrowing capacity of these advance financing notes could be used based on the amount of eligible collateral.
(3)In May 2025, the borrowing capacity was reduced from $500.0 million to $350.0 million, of which uncommitted borrowing capacity was reduced from $50.0 million to nil. In September 2025, we issued variable-rate notes (Series 2025-VF1) with a maximum borrowing
capacity of $350.0 million and an Expected Repayment Date of September 2027. These notes replaced the Series 2015-VF5 notes with the same borrowing capacity and an Expected Repayment Date of September 2025.
(4)In May 2025, the Expected Repayment Date was extended to May 2027 and the borrowing capacity was reduced from $200.0 million to $100.0 million to continue financing certain GSE servicing advances at PHH.
(5)In May 2025, we issued variable-rate notes (Series 2025-VF1) with a maximum borrowing capacity of $350.0 million and an Expected Repayment Date of May 2027 to finance certain GSE servicing advances at PAS.
(6)At December 31, 2025, none of the remaining borrowing capacity of the facility could be used based on the amount of eligible collateral.
(7)The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At December 31, 2025 and 2024, the balance of unamortized prepaid lender fees was $2.0 million and $2.1 million, respectively, and are included in Other assets in our consolidated balance sheets.
Reverse mortgage securitization notes | Outstanding Balance at December 31, | |||||||||||||||||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | Mandatory call date | Initial principal amount | 2025 | 2024 | ||||||||||||||||||||||||||||||||
OLIT Asset-Backed Notes, Series 2023-HB1 (1) | Reverse LHFS, Receivables and REO | June 2036 | June 2026 | $ | 264.9 | $ | 76.5 | $ | 107.3 | |||||||||||||||||||||||||||||
OLIT Asset-Backed Notes, Series 2024-HB1 (1) | Reverse LHFS, Receivables and REO | February 2037 | February 2027 | 268.6 | 116.1 | 160.9 | ||||||||||||||||||||||||||||||||
OLIT Asset-Backed Notes, Series 2024-HB2 (1) | Reverse LHFS, Receivables and REO | August 2037 | August 2027 | 330.6 | 193.8 | 249.1 | ||||||||||||||||||||||||||||||||
OLIT Asset-Backed Notes, Series 2025-HB1 (1) | Reverse LHFS, Receivables and REO | June 2038 | June 2028 | 322.5 | 194.7 | — | ||||||||||||||||||||||||||||||||
OLIT Asset-Backed Notes, Series 2025-HB2 (1) | Reverse LHFS, Receivables and REO | November 2038 | November 2028 | 413.3 | 370.8 | — | ||||||||||||||||||||||||||||||||
Total Reverse mortgage securitization notes - outstanding principal amount | 951.9 | 517.3 | ||||||||||||||||||||||||||||||||||||
Unamortized discount and debt issuance costs (2) | (52.6) | (35.4) | ||||||||||||||||||||||||||||||||||||
Total Reverse mortgage securitization notes, net | $ | 899.3 | $ | 481.9 | ||||||||||||||||||||||||||||||||||
(1)Different classes of Asset-Backed Notes were issued at a discount and a mandatory 3-year call date. We have the option to redeem the notes at any time prior to the mandatory call date, at a 1% premium for a specified period of time after issuance (generally one year) and at par value thereafter. Payments of interest and principal are made from available funds from a pool of reverse mortgage buyout loans and REOs in accordance with the indenture priority of payments. Also see Note 2 — Securitizations and Variable Interest Entities.
(2)The Notes have a stated interest rate of 3.0%, 3.0%, 5.0%, 3.0% and 3.0% respectively. The interest rate excludes the effect of the amortization of discount and debt issuance costs.
Mortgage Warehouse Facilities | Remaining Borrowing Capacity | Outstanding Balance at December 31, | ||||||||||||||||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | Uncommitted | Committed (1) | 2025 | 2024 | ||||||||||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||||||||||||||||
$350 million Master repurchase agreement (2) | Loans held for sale (LHFS), Receivables and REO | May 2026 | $ | 232.1 | $ | — | $ | 117.9 | $ | 47.3 | ||||||||||||||||||||||||||||
$650 million Master repurchase agreement (3) | LHFS and LHFI | June 2026 | 374.4 | — | 275.6 | 238.5 | ||||||||||||||||||||||||||||||||
$205 million Master purchase and servicing agreement (4) | LHFS and LHFI | August 2026 | 168.7 | — | 36.3 | 141.2 | ||||||||||||||||||||||||||||||||
$1 million Master repurchase agreement (5) | LHFS | November 2026 | — | 1.0 | — | — | ||||||||||||||||||||||||||||||||
$550 million Participation agreement (6) | LHFS | November 2026 | 246.0 | — | 304.0 | 221.8 | ||||||||||||||||||||||||||||||||
$300 million Master repurchase agreement (7) | LHFS, LHFI and receivables | November 2026 | — | 184.1 | 101.8 | 130.7 | ||||||||||||||||||||||||||||||||
$50 million Loan and security agreement (8) | LHFI | November 2026 | — | 36.0 | 14.0 | 10.8 | ||||||||||||||||||||||||||||||||
$200 million Master repurchase agreement and securities contract (9) | LHFS | September 2026 | 163.9 | — | 36.1 | — | ||||||||||||||||||||||||||||||||
$15 million Loan and Security Agreement (10) | LHFI | October 2026 | — | 10.8 | 4.2 | 36.2 | ||||||||||||||||||||||||||||||||
$21.5 million Securities Master repurchase agreement (11) | Reverse LHFS, Receivables and REO | N/A | — | — | 21.5 | 10.0 | ||||||||||||||||||||||||||||||||
$350 million Mortgage warehouse agreement (12) | LHFS | N/A | 350.0 | — | — | — | ||||||||||||||||||||||||||||||||
$200 million Mortgage warehouse agreement (13) | LHFS and Receivables | (13) | 192.7 | — | 7.3 | 9.3 | ||||||||||||||||||||||||||||||||
$300 million Master repurchase agreement (14) | LHFS | (14) | — | — | 305.9 | 200.5 | ||||||||||||||||||||||||||||||||
$40 million Loan and security agreement (15) | LHFI | May 2025 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total Mortgage warehouse facilities | $ | 1,727.8 | $ | 231.9 | $ | 1,224.6 | $ | 1,046.3 | ||||||||||||||||||||||||||||||
Weighted average interest rate (16) | 5.24% | 6.01% | ||||||||||||||||||||||||||||||||||||
(1)Of the borrowing capacity on mortgage warehouse facilities extended on a committed basis, none of the remaining borrowing capacity could be used at December 31, 2025 based on the amount of eligible collateral that could be pledged on a committed basis.
(2)In May 2025, the maturity date was extended to May 11, 2026 and the total maximum borrowing capacity was increased from $175.0 million to $350.0 million.
(3)In May 2025, the maturity date was extended to June 1, 2026. In November 2025, the total maximum borrowing capacity was temporarily increased to $650.0 million until February 2, 2026, and further extended in January 2026 to May 4, 2026.
(4)In September 2025, the maturity date was extended to August 31, 2026.
(5)In November 2025, the maturity date was extended to November 19, 2026.
(6)In November 2025, the maturity date was extended to November 19, 2026 and the total maximum borrowing under this agreement was increased to $550.0 million.
(7)In November 2025, the maturity date was extended to November 19, 2026. The total borrowing capacity under this agreement was increased to a maximum of $300.0 million, less any outstanding borrowings under the $50.0 million Loan and Security Agreement provided by the same lender. See (8) below.
(8)In November 2025, the maturity date was extended to November 19, 2026 and the total maximum borrowing under this agreement was increased to $50.0 million.
(9) In September 2025, we entered into a new master participation agreement. The maximum borrowing under this agreement is $200.0 million. The maturity date of the agreement is September 29, 2026.
(10)In October 2024, we entered into a Loan and Security Agreement with an entity managed by Waterfall pursuant to which PHH may borrow against certain eligible reverse mortgage assets, as defined, on a revolving basis for two years up to a maximum committed amount (“WAM Financing Agreement”). The maximum committed amount decreases from an initial $45.0 million to $15.0 million after the first securitization of HECM tails. The obligations of PHH under the Loan and Security Agreement are guaranteed by Onity. The maturity date of the facility is October 30, 2026.
(11)In June 2024, we entered into a repurchase agreement which provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 90-day uncommitted basis. This facility is structured as a repurchase facility whereby the retained mezzanine class notes of the OLIT 2023, OLIT 2024 HB2 and OLIT 2025 HB2 transactions are pledged as collateral for the borrowings and this agreement has no stated maturity date. Also see Note 2 — Securitizations and Variable Interest Entities.
(12)This agreement has no stated maturity date.
(13)The agreement has no stated maturity date, however each transaction has a maximum duration of four years. In April 2025, the total maximum borrowing under this agreement was reduced to $200.0 million.
(14)This repurchase agreement provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 90-day committed basis. This borrowing is structured as a repurchase facility whereby dry Agency mortgage loans are transferred to a trust which issues a trust certificate that is pledged as the collateral for the borrowings. While the $300.0 million facility capacity is referencing the UPB of the loans to be included in the trust, the borrowing amount is determined by the market value of the loans. Each certificate is renewed monthly. In November 2025, we increased the trust certificates by $100.0 million to $300.0 million. See Note 2 — Securitizations and Variable Interest Entities for additional information.
(15)In February 2025, the maturity date was extended to May 30, 2025. In May 2025, we voluntarily allowed the facility to mature.
(16)The weighted average interest rate excludes the effect of the amortization of discount, debt issuance costs and prepaid lender fees. At December 31, 2025 and 2024, unamortized prepaid lender fees were $1.1 million and $1.0 million, respectively, and are included in Other assets in our consolidated balance sheets. At December 31, 2025 and 2024, 1-Month (1M) Term Secured Overnight Financing Rate (SOFR) was 3.69% and 4.33%, respectively.
MSR Financing Facilities | Remaining Borrowing Capacity | Outstanding Balance at December 31, | ||||||||||||||||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | Uncommitted | Committed (1) | 2025 | 2024 | ||||||||||||||||||||||||||||||||
$400 million Ginnie Mae MSR financing facility (2) | MSRs, Advances | January 2027 | $ | 28.6 | $ | — | $ | 371.4 | $ | 244.7 | ||||||||||||||||||||||||||||
$70 million PLS MSR financing facility (3) | MSRs | February 2026 | 2.2 | — | 67.8 | — | ||||||||||||||||||||||||||||||||
$750 million GSE MSR financing facility (4) | MSRs | May 2026 | — | 116.9 | 633.1 | 415.1 | ||||||||||||||||||||||||||||||||
$250 million GSE MSR financing facility (5) | MSRs | May 2027 | — | 55.5 | 194.5 | 249.5 | ||||||||||||||||||||||||||||||||
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (6) | MSRs | February 2028 | — | — | 18.5 | 23.1 | ||||||||||||||||||||||||||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 (7) | MSRs | February 2025 | — | — | — | 25.6 | ||||||||||||||||||||||||||||||||
| Total MSR financing facilities | $ | 30.9 | $ | 172.4 | 1,285.2 | 958.0 | ||||||||||||||||||||||||||||||||
Unamortized debt issuance costs (8) - PLS facilities | — | (0.1) | ||||||||||||||||||||||||||||||||||||
| Total MSR financing facilities, net | $ | 1,285.2 | $ | 957.9 | ||||||||||||||||||||||||||||||||||
Weighted average interest rate (8) | 6.70% | 7.18% | ||||||||||||||||||||||||||||||||||||
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, $24.5 million of the remaining borrowing capacity could be used at December 31, 2025 based on the amount of eligible collateral that was pledged and could be financed on a committed basis.
(2)Our obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and servicing advances. Onity guarantees the obligations under the facility. We are subject to daily margining requirements under the terms of the facility. In February 2025, the maturity date was extended to February 2026. In June 2025, the borrowing capacity was increased to $400.0 million from $300.0 million. In January 2026, the borrowing capacity was increased to $450.0 million and the maturity date was extended to January 2027.
(3)The final payment on the PLS Notes (see (7) below) was made from proceeds received on this new $70.0 million repurchase agreement entered into in February 2025 with a maturity date of February 2026, pursuant to which PHH sold the membership interest certificate representing 100% of the limited liability company interests in PLS Issuer and agreed to repurchase such membership interest certificate at a specified future date at the price set forth in the repurchase agreement. Onity guarantees the obligations of PHH under the facility subject to the terms and conditions set forth in the guaranty secured by a lien on the related PLS MSRs. See Note 2 — Securitizations and Variable Interest Entities for additional information.
(4)Our obligations under this facility are secured by a lien on certain GSE MSRs. Onity guarantees the obligations under this facility. See Note 2 — Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. In January 2025, the borrowing capacity was increased to $650.0 million. In May 2025, the facility was
extended to PAS with similar terms to the existing facility with an aggregate borrowing capacity of $650.0 million, that was further increased to $750.0 million in June 2025. In August 2025, the maturity date was extended to January 2026. In January 2026, the maturity date was extended to May 2026.
(5)This facility is secured by a lien on certain of our GSE MSRs and is subject to daily margining requirements. In February 2025, the borrowing capacity was reduced to $250.0 million from $400.0 million and the maturity date was modified to June 30, 2025. In May 2025, we repaid the amount due under the existing PHH facility and PAS entered into a new facility with similar terms, including the same borrowing capacity and a new maturity date of May 2027. Onity guarantees the obligations under the facility.
(6)OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes.
(7)The single class PLS Notes were an amortizing debt instrument with an original principal amount of $75.0 million and a fixed interest rate of 5.114%. The PLS Notes were issued by a trust (PLS Issuer) that is included in our consolidated financial statements, and PLS Issuer’s obligations under the facility were secured by a lien on the related PLS MSRs. Onity guaranteed the obligations of PLS Issuer under the facility. The final principal payment was made on the due date in February 2025. See Note 2 — Securitizations and Variable Interest Entities for additional information.
(8)Weighted average interest rate excludes the effect of the amortization of debt issuance costs and prepaid lender fees. At December 31, 2025 and 2024, unamortized prepaid lender fees related to revolving-type MSR financing facilities were $1.5 million and $2.1 million, respectively, and are included in Other assets in our consolidated balance sheets.
Senior Notes | Outstanding Balance at December 31, | ||||||||||||||||||||||
Interest Rate (1) | Maturity | 2025 | 2024 | ||||||||||||||||||||
Senior Notes Due 2029 | 9.875% | November 2029 | $ | 500.0 | $ | 500.0 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Discount (2) | (1.8) | (2.2) | |||||||||||||||||||||
Unamortized debt issuance costs (2) | (8.6) | (10.4) | |||||||||||||||||||||
| (10.4) | (12.6) | ||||||||||||||||||||||
Senior notes, net | $ | 489.6 | $ | 487.4 | |||||||||||||||||||
(1)Excludes the effect of the amortization of debt issuance costs and discount.
(2)The discount and debt issuance costs are amortized to interest expense through the maturity of the notes.
Issuance of 9.875% Senior Notes due 2029
On November 6, 2024, PHH Corporation issued $500.0 million aggregate principal amount of 9.875% Senior Notes due November 1, 2029 (Senior Notes due 2029) at a price of 99.556% of the principal amount in a syndicated private placement exempt from registration under the Securities Act of 1933, as amended. Interest on the Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025, and principal is due at maturity. The Senior Notes are guaranteed by Onity and certain wholly-owned subsidiaries including PMC and PAS (collectively “Restricted Subsidiaries”). The Senior Notes due 2029 are secured by the equity interests of the Restricted Subsidiaries and any Available Cash in excess of Agency Requirements, as defined. Also, see Note 28 — Subsequent Events for information on the issuance of an additional $200.0 million of Senior Notes due 2029 on January 30, 2026.
On or after November 1, 2026, PHH Corporation may redeem some or all of the Senior Notes at its option at the following redemption prices, plus accrued and unpaid interest:
Redemption Year (12-month period beginning on November 1st of the years indicated below) | Redemption Price | |||||||
| 2026 | 104.938 | % | ||||||
| 2027 | 102.469 | |||||||
| 2028 and thereafter | 100.000 | |||||||
Prior to November 1, 2026, PHH Corporation may redeem some or all of the Senior Notes at its option at a redemption price equal to 100% of the principal amount of the Notes being redeemed with a “make-whole” premium, as defined, plus accrued and unpaid interest. In addition, prior to November 1, 2026, PHH Corporation may redeem up to 40% of the aggregate principal amount of the Notes with the net cash proceeds from certain equity offerings by Onity at the redemption price equal to 109.875% of the principal amount plus accrued and unpaid interest.
The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH Corporation, Onity and its Restricted Subsidiaries to, among other things, (i) incur or guarantee additional Indebtedness, as defined, (ii) incur liens, (iii) pay dividends on or make distributions or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with certain affiliates.
Redemption in 2024 of PMC 7.875% Senior Notes due 2026 and Onity 12% Senior Notes due 2027
The proceeds from the issuance of the Senior Notes Due 2029 described above, together with proceeds from the sale of MAV Canopy and available cash, were used to redeem in November 2024 all of the outstanding $289.1 million 7.875% PMC Senior Secured Notes due 2026 at a redemption price of 101.969% and the $285.0 million 12% Onity Senior Secured Notes due 2027 at a redemption price equal to 102.5% (with the exception of notes redeemed equal to the cash proceeds from the MAV Canopy sale which were redeemed at par). The redemption of all of the outstanding notes resulted in the recognition of a $53.4 million loss on debt extinguishment due to the accelerated write-off of $36.8 million unamortized discount and debt issuance costs, the payment of an $11.6 million make-whole redemption premium and a $5.0 million transaction fee to Oaktree. Also refer to Note 12 — Investment in Equity Method Investee and Related Party Transactions.
In addition, during 2024 (prior to their redemption) and 2023, we repurchased and extinguished a total principal amount of $70.9 million and $15.0 million, respectively, of the PMC Senior Secured Notes, and recognized a gain of $4.1 million and $1.3 million on debt extinguishment, net of the associated write-off of unamortized discount and debt issuance costs.
Credit Ratings
Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligations. On October 2, 2025, Moody’s affirmed the Caa1 rating of the $500.0 million Senior Notes due 2029 issued by PHH Corporation. Moody’s also affirmed the B3 corporate family rating of Onity. The entities’ outlooks are stable. On October 21, 2024, S&P assigned a B- rating to the $500.0 million Senior Notes due 2029. S&P also affirmed the B- rating of Onity with a Stable Outlook. It is possible that additional actions by credit rating agencies could have a material adverse impact on our liquidity and funding position, including materially changing the terms on which we may be able to borrow money.
Covenants
Under the terms of our debt agreements in effect as of December 31, 2025, we are subject to various affirmative and negative covenants. Collectively, these covenants include:
•Financial covenants, including, but not limited to, specified levels of net worth, liquidity and leverage;
•Covenants to operate in material compliance with applicable laws;
•Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Onity and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Onity and its subsidiaries or of PHH Corporation, PHH or PAS and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates;
•Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and
•Requirements to provide audited financial statements within specified timeframes, including requirements that Onity’s financial statements and the related audit report be unqualified as to going concern.
The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at December 31, 2025 is a minimum of $275.0 million and $125.0 million tangible net worth for Onity and PHH, respectively. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at December 31, 2025 is for a minimum of $65.0 million and $20.0 million for Onity and PHH, respectively. None of our debt agreements have any tangible net worth or liquidity requirements at PAS due to the guarantee of Onity. See Note 25 — Regulatory Requirements for our regulatory capital and liquidity requirements.
As a result of the covenants to which we are subject, we may be limited in the manner in which we conduct our business and may be limited in our ability to engage in favorable business and investment activities or raise certain types of capital to finance future operations or satisfy future liquidity needs. In addition, breaches or events that may result in a default under our debt agreements include, among other things, nonpayment of principal or interest, noncompliance with our covenants, breach of representations, the occurrence of a material adverse change, insolvency, bankruptcy, certain material judgments and changes of control.
Covenants and default provisions of this type are commonly found in debt agreements such as ours. Certain of these covenants and default provisions are open to subjective interpretation and, if our interpretation was contested by a lender, a
court may ultimately be required to determine compliance or lack thereof. In addition, our debt agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. If we fail to comply with our debt agreements and are unable to avoid, remedy or secure a waiver of any resulting default, we may be subject to adverse action by our lenders, including termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting our obligations and other legal remedies. Our lenders can waive their contractual rights in the event of a default.
We believe we were in compliance with all of the covenants in our debt agreements as of the date of these consolidated financial statements.
Collateral
Our assets pledged as collateral for secured borrowings are as follows at December 31, 2025. Assets may also be subject to other liens or restrictions under various agreements.
| Assets | Pledged Assets | Collateralized Financings (8) | Liability Categories | ||||||||||||||||||||
Cash (1) | $ | 180.5 | $ | — | $ | — | n/a (1) | ||||||||||||||||
Restricted cash (2) | 84.1 | 45.2 | — | Multiple | |||||||||||||||||||
Owned MSRs, excluding ESS (4) | 1,870.9 | 1,870.4 | 1,216.2 | MSR financing facilities | |||||||||||||||||||
Transferred MSRs, including ESS (3) | 954.5 | 954.5 | 868.4 | MSR related financing liabilities and MSR financing facilities (3) | |||||||||||||||||||
Advances, net (4) | 483.4 | 430.6 | 384.4 | Advance match funded liabilities and MSR financing facilities | |||||||||||||||||||
| Loans held for sale | 1,891.7 | 1,850.4 | 1,916.1 | Mortgage warehouse facilities and Reverse mortgage securitization notes | |||||||||||||||||||
Reverse loans held for sale pooled into HMBS - securitized (5) (6) | 9,703.1 | 9,703.1 | 9,611.7 | HMBS related borrowings | |||||||||||||||||||
Reverse loans held for sale pooled into HMBS - unsecuritized (6) | 104.4 | 77.7 | 69.2 | Mortgage warehouse facilities | |||||||||||||||||||
| Receivables, net | 189.8 | 84.9 | 97.7 | Mortgage warehouse facilities and Reverse mortgage securitization notes | |||||||||||||||||||
REO (Other assets) | 83.8 | 81.0 | 93.6 | Mortgage warehouse facilities and Reverse mortgage securitization notes | |||||||||||||||||||
Total (7) | $ | 15,546.1 | $ | 15,097.8 | $ | 14,257.3 | |||||||||||||||||
(1)Includes $157.2 million Available Cash held by Regulated Subsidiary Guarantors, as defined, pursuant to the Senior Notes Due 2029.
(2)Pledged assets primarily include amounts specifically designated to repay debt and to provide over-collateralization for MSR financing facilities, reverse mortgage securitization notes, mortgage warehouse facilities and match funded debt facilities (debt service accounts).
(3)Includes MSRs transferred to MSR capital partners that are accounted for as secured financings and ESS pledged MSRs. Includes $26.4 million MSR financing facilities.
(4)$42.5 million drawn under the $400 million Ginnie Mae MSR financing facility is used to finance Ginnie Mae related advances.
(5)Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PHH’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PHH in connection with certain claims relating to the performance and obligations of PHH as both issuer of HMBS and servicer of HECMs underlying HMBS.
(6)See Note 5 – Reverse Mortgages.
(7)The total of selected assets disclosed in the above table does not represent the total consolidated assets of Onity. For example, the total excludes contingent loan repurchase asset, premises and equipment, and certain other assets.
(8)Amounts represent UPB and fair value for borrowings accounted for at amortized cost and fair value, respectively.
Maturities of Borrowings
Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience.
Expected Maturity/Repayment Date (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total Balance | Fair Value | ||||||||||||||||||||||||||||||||||||||||
| Advance match funded liabilities | $ | 0.5 | $ | 341.4 | $ | — | $ | — | $ | — | $ | — | $ | 341.9 | $ | 341.9 | |||||||||||||||||||||||||||||||
| Reverse mortgage securitization notes | 76.5 | 309.9 | 565.5 | — | — | — | 951.9 | 909.6 | |||||||||||||||||||||||||||||||||||||||
| Mortgage loan warehouse facilities | 1,224.6 | — | — | — | — | — | 1,224.6 | 1,224.6 | |||||||||||||||||||||||||||||||||||||||
| MSR financing facilities | 1,072.2 | 194.5 | 18.5 | — | — | 1,285.2 | 1,278.3 | ||||||||||||||||||||||||||||||||||||||||
Senior notes | — | — | — | 500.0 | — | — | 500.0 | 515.0 | |||||||||||||||||||||||||||||||||||||||
| $ | 2,373.8 | $ | 845.9 | $ | 584.0 | $ | 500.0 | $ | — | $ | — | $ | 4,303.6 | $ | 4,269.4 | ||||||||||||||||||||||||||||||||
(1)Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment.
Our MSR financing facilities provide funding based on an advance rate of MSR value that is subject to periodic mark-to-market valuation adjustments. In the normal course, MSR value is expected to decline over time due to runoff of the loan balances in our servicing portfolio. As a result, we anticipate having to repay a portion of our MSR debt over a given time period. The requirements to repay MSR debt including those due to unfavorable fair value adjustment, for example due to a decline in market interest rates, may require us to allocate a substantial amount of our available liquidity or future cash flows to meet these requirements.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2016 | Feb 23, 2017 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.