Onity Group to sell $5.1 billion reverse mortgage portfolio, launch $20 million buyback
ONIT•Onity Group received regulatory approval to sell servicing rights for approximately 20,000 Ginnie Mae reverse mortgages with a $5.1 billion unpaid principal balance, expecting $70–80 million in net proceeds. The company will subservice these loans under a three-year agreement and authorized up to $20 million in share repurchases through June 2027 to enhance shareholder value.
1. Regulatory approval and strategic pivot
Onity Group has secured regulatory approval to sell its reverse mortgage servicing portfolio and certain originations assets to a leading reverse mortgage provider. This marks a strategic shift as Onity exits direct reverse mortgage origination while retaining a subservicing role under a three-year agreement.
2. MSR portfolio sale specifics
The sale covers servicing rights for about 20,000 Ginnie Mae home equity conversion mortgage loans with a $5.1 billion unpaid principal balance as of March 31, 2026. Upon closing, the company expects to receive $70–80 million in net proceeds and will subservice the sold portfolio for three years.
3. $20 million share repurchase program
Onity’s Board authorized a share repurchase program of up to $20 million, valid through June 2027 unless extended or completed earlier. The open-market buyback initiative is designed to deploy capital strategically and enhance long-term shareholder returns, subject to market conditions and board discretion.
