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Reverse Mortgages | 6 Months Ended
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Jun. 30, 2025
Receivables [Abstract] |
Reverse Mortgages |
Note 5 - Reverse Mortgages
The following table presents the estimated fair value of reverse mortgage loans held for investment:
| June 30, 2025 |  | December 31, 2024 |  |
Unpaid principal balance | $ | 10,014.5 |  |  | $ | 10,699.5 |  |  |
Fair value adjustments | 456.2 |  |  | 425.8 |  |  |
Total fair value | $ | 10,470.8 |  |  | $ | 11,125.3 |  |  |
The following table presents the composition of reverse mortgage loans held for investment, at fair value by type:
| June 30, 2025 |  | December 31, 2024
HECM loans - securitized, pledged to HMBS-related borrowings (1) | $ | 10,341.3 |  |  | $ | 10,950.8 |
New HECM loan originations and HECM loan tails (2) - unsecuritized | 129.5 |  |  | 174.5 |
Total fair value | $ | 10,470.8 |  |  | $ | 11,125.3 |
(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:
| Three Months Ended June 30,
| 2025 |  | 2024
| Loans Held for Investment - Reverse Mortgages |  | HMBS - Related Borrowings |  | Loans Held for Investment - Reverse Mortgages |  | HMBS - Related Borrowings
Beginning balance | $ | 10,812.5 |  |  | $ | (10,587.6) |  |  | $ | 8,125.0 |  |  | $ | (7,945.0) |
Originations | 268.4 |  |  | — |  |  | 269.9 |  |  | — |
Securitization of HECM loans accounted for as a financing | — |  |  | (268.5) |  |  | — |  |  | (260.3) |
Additional proceeds from securitization of HECM loans and tails | — |  |  | (3.1) |  |  | — |  |  | (3.0) |
Repayments (principal payments received) | (777.3) |  |  | 767.4 |  |  | (322.0) |  |  | 316.0 |
Transfers to: |  |  |  |  |  |  |
Loans held for sale, at fair value | (2.6) |  |  | — |  |  | (0.8) |  |  | — |
Receivables | (2.4) |  |  | — |  |  | (0.5) |  |  | — |
REO (Other assets) | (0.1) |  |  | — |  |  | (0.1) |  |  | — |
Other | (0.2) |  |  | — |  |  | — |  |  | — |
Fair value gains (losses) included in earnings (1) | 172.5 |  |  | (161.3) |  |  | 150.9 |  |  | (143.0) |
Ending balance | $ | 10,470.8 |  |  | $ | (10,253.1) |  |  | $ | 8,222.4 |  |  | $ | (8,035.4) |
| Six Months Ended June 30,
| 2025 |  | 2024
| Loans Held for Investment - Reverse Mortgages |  | HMBS - Related Borrowings |  | Loans Held for Investment - Reverse Mortgages |  | HMBS - Related Borrowings
Beginning balance | $ | 11,125.3 |  |  | $ | (10,872.1) |  |  | $ | 7,970.0 |  |  | $ | (7,797.3) |
Originations | 545.5 |  |  | — |  |  | 520.3 |  |  | — |
Securitization of HECM loans accounted for as a financing | — |  |  | (577.6) |  |  | — |  |  | (507.7) |
Additional proceeds from securitization of HECM loans and tails | — |  |  | (7.1) |  |  | — |  |  | (6.4) |
Repayments (principal payments received) | (1,563.4) |  |  | 1,544.6 |  |  | (598.9) |  |  | 588.1 |
Transfers to: |  |  |  |  |  |  |
Loans held for sale, at fair value | (5.7) |  |  | — |  |  | (1.9) |  |  | — |
Receivables | (4.9) |  |  | — |  |  | (1.4) |  |  | — |
REO (Other assets) | (0.3) |  |  | — |  |  | (0.1) |  |  | — |
Other | (0.2) |  |  | — |  |  | — |  |  | — |
Fair value gains (losses) included in earnings (1) | 374.6 |  |  | (340.7) |  |  | 334.4 |  |  | (312.0) |
Ending balance | $ | 10,470.8 |  |  | $ | (10,253.1) |  |  | $ | 8,222.4 |  |  | $ | (8,035.4) |
(1)See further breakdown of the net gain (loss) in the table below. Includes interest accruals. 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. 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. 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 | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Fair value gains (losses) of Reverse loans held for investment | $ | 172.5 |  |  | $ | 150.9 |  |  | $ | 374.6 |  |  | $ | 334.4 |
Fair value gains (losses) of HMBS related borrowings | (161.3) |  |  | (143.0) |  |  | (340.7) |  |  | (312.0) |
Total fair value gains (losses) included in earnings | $ | 11.2 |  |  | $ | 7.9 |  |  | $ | 33.9 |  |  | $ | 22.4 |
The following table presents the components of Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net:
Gain on Reverse Loans Held for Investment and HMBS-related Borrowings, Net | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Gain on new originations (1) | $ | 5.3 |  |  | $ | 5.1 |  |  | $ | 11.1 |  |  | $ | 11.0 |
Net interest income (servicing fee) (2) | 8.0 |  |  | 6.1 |  |  | 16.4 |  |  | 12.0 |
Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net | (2.2) |  |  | (3.3) |  |  | 6.4 |  |  | (0.7) |
Fair value gains (losses) included in earnings (3) | 11.2 |  |  | 7.9 |  |  | 33.9 |  |  | 22.4 |
Loan fees and other | 0.7 |  |  | 0.6 |  |  | 1.8 |  |  | 1.5 |
| $ | 11.9 |  |  | $ | 8.5 |  |  | $ | 35.7 |  |  | $ | 23.9 |
(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.

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