Onity maintains 2026 adjusted ROE guidance at 10%-15%, expects results at lower end of range.
Company reaffirms guidance on servicing UPB growth, MSR hedge effectiveness, and operating efficiency.
Overview
U.S. mortgage servicer's Q2 revenue rose 15% yr/yr, driven by record origination volume.
Company reported Q2 net loss due to restructuring costs and unfavorable asset fair value changes.
Completed sale of reverse assets, generating $77 mln in net proceeds.
Result drivers
Origination volume - Record originations and significant subservicing additions drove double-digit revenue and servicing UPB growth.
Portfolio restructuring costs - Net loss was impacted by reverse asset sale and transfer of legacy subservicing.
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the banks peer group is "buy".
Wall Street's median 12-month price target for Onity Group Inc is $50.00, about 31.4% above its August 5 closing price of $38.05.
ONIT•
