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Reverse Mortgages
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Reverse Mortgages
Note 5 – Reverse Mortgages
The following table presents the estimated fair value of reverse mortgage loans held for investment for which we elected the fair value option:

December 31, 2024December 31, 2023
Unpaid principal balance
$10,699.5 $7,664.7 
Fair value adjustments
425.8 305.3 
Total fair value
$11,125.3 $7,970.0 
The following table presents the composition of reverse mortgage loans held for investment, at fair value by type:
 December 31, 2024December 31, 2023
HECM loans - securitized, pledged to HMBS-related borrowings (1)
$10,950.8 $7,868.5 
New HECM loan originations and HECM loan tails (2) - unsecuritized
174.5 101.5 
Total fair value
$11,125.3 $7,970.0 
(1)The Ginnie Mae securitization of conventional, HECM loans does not qualify for sale accounting treatment and is accounted for as a secured financing transaction, with the recognition of both loans and HMBS-related borrowing on the consolidated balance sheets.
(2)Tails include draws on securitized HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize.
The following table summarizes the activity in reverse mortgage loans held for investment and HMBS related borrowings that do not qualify for sale accounting and for which we elected the fair value option:
Years Ended December 31,
202420232022
Loans Held for Investment - Reverse Mortgages
HMBS - Related Borrowings (3)
Loans Held for Investment - Reverse Mortgages
HMBS - Related Borrowings (3)
Loans Held for Investment - Reverse Mortgages
HMBS - Related Borrowings (3)
Beginning balance$7,970.0 $(7,797.3)$7,504.1 $(7,326.8)$7,199.8 $(6,885.0)
Originations 1,125.0 — 1,033.4 — 1,658.1 — 
Securitization of HECM loans accounted for as a financing— (1,073.5)— (1,054.6)— (1,780.4)
Additional proceeds from securitization of HECM loans and tails— (13.2)— (11.0)— (25.2)
Acquisition (1) (2)
2,912.7 (2,880.9)— — 211.3 (209.1)
Repayments (principal payments received)(1,495.4)1,474.7 (1,076.9)1,070.1 (1,579.9)1,568.4 
Transfers:
Loans held for sale, at fair value(4.8)— (6.1)— (8.0)— 
Receivables, net(3.0)— (3.4)— 2.1 — 
REO (Other assets)(0.5)— (0.1)— (0.4)— 
Fair value gains (losses) included in earnings (4)
621.2 (581.8)519.0 (475.0)21.1 4.5 
Ending Balance$11,125.3 $(10,872.1)$7,970.0 $(7,797.3)$7,504.1 $(7,326.8)
(1)On November 1, 2024, we acquired certain reverse mortgage assets of MAM and investment funds managed by Waterfall Asset Management, LLC that own MAM (collectively “Waterfall”). The acquired assets were subserviced by PHH and included HECM reverse mortgage loans and mortgage servicing rights with a UPB of $2.9 billion (which are reported on our consolidated balance sheet as Loans held for investment, at fair value along with HMBS-related borrowings, at fair value), $20.0 million cash, and reverse mortgage buyouts, advances, tails and other related assets and liabilities. In consideration of the net acquired assets, Onity issued shares of a new series of preferred stock. See Note 16 — Mezzanine Equity and Supplemental non-cash activity of the consolidated statements of cash flows. Included in Other liabilities is the consideration for assets transferred with a UPB of $14.2 million for which the final amount of consideration is subject to post-closing adjustment to be agreed upon by the parties and may be settled in the form of cash, additional preferred stock, other instrument, or a combination thereof.
(2)During 2022, we purchased a reverse mortgage servicing portfolio of HECM loans securitized in Ginnie Mae pools. As the Ginnie Mae HMBS program does not qualify for sale accounting, the transaction conveyed the HECM loans and associated HMBS-related borrowings to us. We have accounted for this transaction as a secured financing, as a purchase of loans held for investment and assumption of an HMBS securitization liability for the obligation to Ginnie Mae.
(3)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is the pass-through rate of the loans less applicable margin. See Note 2 — Securitizations and Variable Interest Entities.
(4)See further breakdown of the net gain (loss) in the table below. Includes interest accruals.
The following table presents the Fair value gains (losses) on reverse loans held for investment and HMBS-related borrowings included in earnings:
Fair value gains (losses) included in earnings
Years Ended December 31,
202420232022
Fair value gains (losses) of Reverse loans held for investment
$621.2 $519.0 $21.1 
Fair value gains (losses) of HMBS related borrowings
(581.8)(475.0)4.5 
Total fair value gains (losses) included in earnings
$39.4 $44.0 $25.6 

The following table presents the components of Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net:
Gain (Loss) on Reverse Loans Held for Investment and HMBS-related Borrowings, Net
Years Ended December 31,
202420232022
Gain on new originations (1)$22.8 $20.5 $50.7 
Net interest income (servicing fee) (2)
26.2 23.6 21.9 
Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net
(9.7)(0.1)(47.1)
Fair value gains (losses) included in earnings (3)
39.4 44.0 25.6 
Loan fees and other3.1 2.8 10.5 
$42.5 $46.7 $36.1 
(1)Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date.
(2)Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings. The net interest income includes the servicing fee Onity is contractually entitled to on securitized loans.
(3)See breakdown between Loans held for investment and HMBS-related borrowings in the table above.