ONITY GROUP INC. 8-K

What Happened
Onity Group Inc. filed an 8‑K reporting that on May 28, 2026 it received regulatory approval to sell its reverse mortgage servicing portfolio and certain reverse originations assets to Finance of America Reverse LLC (FAR). The portfolio includes servicing rights for approximately 20,000 Ginnie Mae Home Equity Conversion Mortgage (HECM) loans with an unpaid principal balance (UPB) of $5.1 billion as of March 31, 2026. FAR will also acquire Onity’s reverse pipeline at closing, and the parties will enter a three‑year subservicing arrangement. The transaction remains subject to customary closing conditions and Onity will update the anticipated closing date later.

Key Details

• Regulatory approval received: May 28, 2026.
• Portfolio size: ~20,000 Ginnie Mae HECM loans; $5.1 billion UPB (as of March 31, 2026).
• Post‑closing operations: FAR buys the pipeline and Onity and FAR will have a three‑year subservicing agreement.
• Share repurchase: On June 1, 2026 Onity’s Board authorized up to $20.0 million for open‑market repurchases through June 2027 (unless earlier modified); repurchased shares will be retired.

Why It Matters
The sale represents a material transfer of Onity’s reverse mortgage servicing rights and related loan pipeline (noted at $5.1B UPB), which could change the company’s servicing-related assets and cash flows once the transaction closes. The three‑year subservicing agreement means Onity may continue servicing operations for FAR after closing. Separately, the $20 million share repurchase program gives management a tool to return capital to shareholders and, if executed, would reduce outstanding shares (potentially affecting per‑share measures). Both the sale and the buyback are subject to conditions and timing uncertainty; the 8‑K notes that closing and repurchase timing/amounts are forward‑looking and not guaranteed.