Bose George

Timothy D'Agostino

- ONIT Group, an independent mortgage servicer and originator, reported a year-to-date adjusted return on equity of **18%** and maintains a 2025 guidance of **16% to 18%**.  **[873860_2146199_1]** **[873860_2146199_5]**  The company also aims to grow its servicing book (UPB) by **10% or more** in 2025.  **[873860_2146199_5]** 
- The company operates a **balanced business model** that performs well in varying interest rate environments, ranking as a very large servicer/subservicer and a top ten correspondent lender among non-bank players.  **[873860_2146199_1]** **[873860_2146199_2]** 
- ONIT's recapture rate was **best in class** for the most recent quarter and **second best** over the last 12 months compared to publicly reported competitors.  **[873860_2146199_3]**  The consumer direct recapture rate in the most recent quarter was **88%**.  **[873860_2146199_7]** 
- The company's leverage ratio improved to approximately **3.2 to 1** in Q2 2025, down from over **4 to 1** in 2024, following a restructuring that reduced total debt by about **$140 million**.  **[873860_2146199_5]** 
- Despite comparable profitability to peers, ONIT Group trades at a significant **discount to book** (around 65% to 70%), which management attributes to GAAP balance sheet gross-ups and its small-cap status.  **[873860_2146199_2]** **[873860_2146199_7]** **[873860_2146199_8]**

ONITY GROUP (ONIT)