Onity Group Inc. reported a net income attributable to common stockholders of $21 million for the first quarter of 2025, with a diluted earnings per share $(EPS)$ of $2.50 and a return on equity $(ROE)$ of 19%. The adjusted pre-tax income was $25 million, resulting in an annualized adjusted ROE of 22%. The company's book value per share increased to $58 as of March 31, 2025, up by $2.15 compared to a year earlier. Onity observed $17 billion in total servicing additions, with an average servicing unpaid principal balance $(UPB)$ of $305 billion, marking an increase of $13 billion year-over-year. For its 2025 outlook, Onity confirmed its previous guidance, anticipating an adjusted ROE range of 16% to 18%. The company also highlighted the potential release of some or all of a $180 million deferred tax valuation allowance by the end of the year. Additionally, Onity expanded its high-margin product offerings with the introduction of enhanced home equity and proprietary reverse mortgage loans, branded as EquityIQ®. The company's effective mortgage servicing rights $(MSR.AU)$ hedge strategy resulted in minimal MSR fair value volatility. Total liquidity stood at $239 million as of the end of the quarter.
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