ONITY GROUP INC. 8-K

What Happened
On June 30, 2026, Onity Group Inc., together with its wholly owned subsidiary Onity Mortgage Corporation, closed the sale of its reverse mortgage servicing portfolio and certain reverse originations assets to Finance of America Reverse LLC. The transaction transferred reverse mortgage servicing rights for approximately 20,000 Ginnie Mae Home Equity Conversion Mortgage (HECM) loans with an unpaid principal balance of about $5.2 billion as of May 31, 2026, and included Onity’s pipeline of reverse mortgage loans as of the closing date. The parties also agreed to a three-year subservicing arrangement under which Onity will provide subservicing for the portfolio.

Key Details

• Closing date: June 30, 2026 (reported in 8-K filed July 1, 2026)
• Buyer: Finance of America Reverse LLC
• Portfolio: ~20,000 Ginnie Mae HECM loans
• Unpaid principal balance (UPB): ~$5.2 billion (as of May 31, 2026)
• Additional terms: Onity’s reverse mortgage loan pipeline included; a three-year subservicing agreement was signed

Why It Matters
The sale moves ownership of significant reverse mortgage servicing rights off Onity’s books while preserving a role for the company as subservicer for three years. For investors, that means Onity shifts from holding those servicing assets to providing ongoing servicing under contract, which can change how servicing revenue and related assets appear on the company’s financial statements going forward. The 8-K notifies investors of the material change in Onity’s servicing portfolio and operational arrangement with the new owner.