Onity Group Inc. (formerly Ocwen Financial Corporation) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on non-bank mortgage servicing and origination, has seen a notable increase in total assets, which rose to $13.2 billion from $12.5 billion at the end of 2023. Total liabilities also increased, reaching $12.8 billion, up from $12.1 billion. However, Onity's accumulated deficit improved to $(89.6 million) from $(151.6 million), and total stockholders’ equity increased to $468.2 million from $401.8 million.

For the three months ended September 30, 2024, Onity reported total revenue of $265.7 million, a slight increase from $255.5 million in the same period of 2023. However, total revenue for the nine months decreased to $751.2 million from $789.4 million year-over-year. The company achieved a net income of $21.4 million for the third quarter, significantly up from $8.5 million in the prior year, and a net income of $62.0 million for the nine months, a turnaround from a net loss of $(16.2 million) in the same period of 2023. Basic earnings per share for the third quarter were $2.72, compared to $1.10 in the previous year.

Strategically, Onity has been active in the market, executing its second and third OLIT securitizations in 2024 and acquiring assets from Mortgage Assets Management, LLC, and Waterfall Asset Management, which included HECM reverse mortgage loans and mortgage servicing rights valued at approximately $3.0 billion. The acquisition was financed through the issuance of Series B Preferred Stock and a revolving line of credit.

The company also reported a significant increase in loan production, with new volume totaling $18.5 billion in Q3 2024, driven by both subservicing and originations. However, total servicing and subservicing UPB decreased by 2% to $298.9 billion compared to the previous quarter. The average 30-year fixed mortgage rate declined, contributing to increased origination opportunities.

Operating expenses for the third quarter increased by 8% compared to the previous quarter, primarily due to higher reimbursements from mortgage loan investors and increased cash awards expenses. The company continues to manage its liquidity effectively, with total liquidity reported at $299.2 million as of September 30, 2024, up from $241.6 million at the end of 2023.

Overall, Onity's financial performance reflects a recovery trajectory, with improved profitability and strategic asset acquisitions positioning the company for future growth in the mortgage servicing sector.