We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with asset-backed financing arrangements. We have aggregated these transfers of financial assets and asset-backed financing arrangements using special purpose entities (SPEs) or VIEs into the following groups: (1) securitizations of residential mortgage loans, (2) financings of loans held for sale and other related assets, (3) financings of advances and (4) MSR financings. Financing transactions that do not use SPEs or VIEs are disclosed in Note 12 – Borrowings.

We sell or securitize forward loans that we originate or purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization typically occurs within 30 days of loan closing or purchase. We act only as a fiduciary and do not have a variable interest in the securitization trusts. As a result, we account for these transactions as sales upon transfer.


	Three Months Ended March 31,
	2026		2025
Proceeds received from securitizations	$	5,983.5	$	4,068.8
Servicing fees collected (1)	53.0		40.1
Purchases of previously transferred assets, net of claims reimbursed	(5.2)		(4.3)
	$	6,031.3	$	4,104.6

(1)We receive servicing fees based upon the securitized loan unpaid principal balance (UPB) and certain ancillary fees, all of which are reported in Servicing and subservicing fees in the unaudited consolidated statements of operations.

Certain obligations arise from the agreements associated with our transfers of loans. Under these agreements, we may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor or insurer for losses incurred due to material breach of contractual representations and warranties. We receive customary origination representations and warranties from our network of approved correspondent lenders. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur. Also refer to the Loan Put-Back and Related Contingencies section of Note 22 – Contingencies.

The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans:


	March 31, 2026		December 31, 2025
Carrying value of assets
MSRs, at fair value	$	1,055.5	$	978.2
Advances	117.6		119.6
UPB of loans transferred (1)	67,477.0		64,876.2
Maximum exposure to loss (2)	$	68,650.0	$	65,974.0

(1)Includes $18.6 billion and $17.5 billion of loans delivered to Ginnie Mae as of March 31, 2026 and December 31, 2025, respectively, and includes loan modifications repurchased and delivered through the Ginnie Mae Early Buyout Program (EBO).

(2)The maximum exposure to loss in the table above is primarily based on the remaining UPB of loans serviced and assumes all loans were deemed worthless as of the reporting date. It does not take into consideration the proceeds from the underlying collateral liquidation, recoveries or any other recourse available to us, including from mortgage insurance, guarantees or correspondent sellers. We do not believe the maximum exposure to loss from our involvement with these previously transferred loans is representative of the actual loss we are likely to incur based on our contractual rights and historical loss experience and projections. Also, refer to the Loan Put-Back and Related Contingencies section of Note 22 – Contingencies.

At March 31, 2026 and December 31, 2025, 2.3% and 2.2%, respectively, of the transferred residential loans that we service were 60 days or more past due, including 60 days or more past due loans under forbearance. This includes 5.6% and 5.5%, respectively, of loans delivered to Ginnie Mae that are 60 days or more past due.

We pool HECM loans into HMBS that we sell into the secondary market with servicing rights retained. We have determined that loan transfers in the HMBS program do not meet the definition of a participating interest and the servicing requirements require the issuer/servicer to absorb some level of interest rate risk, cash flow timing risk and incidental credit risk. As a result, the transfers of the HECM loans do not qualify for sale accounting, and therefore, we account for these transfers as secured financings, with the HECM loans classified as Reverse loans held for sale pooled into HMBS, at fair value (previously Loans held for investment, at fair value through November 2025) on our consolidated balance sheets. Holders of participating interests in the HMBS have no recourse against the assets of Onity, except with respect to standard representations and warranties and our contractual obligation to service the HECM loans and the HMBS.

We consolidate SPEs (trusts) in connection with mortgage warehouse financing facilities structured as repurchase or gestation repurchase facilities whereby mortgage loans held for sale, claim receivables and REO properties, or participation interests therein, are transferred by OMC to trusts for collateralization purposes. We have determined that the trusts are VIEs for which we are the primary beneficiary. Therefore, we have included the trusts in our consolidated financial statements. As of March 31, 2026 and December 31, 2025, $905.6 million and $507.6 million, respectively, assets were pledged as collateral for debt issuances by the trusts in the amount of $876.2 million and $496.1 million, respectively. See Note 12 – Borrowings.

We finance certain reverse mortgage buyouts that are insured by the FHA, including loans held for sale, claim receivables from HUD and REO properties, through private placement securitizations, referred to as “OLIT transactions”. The securitized assets include assets we purchased from third parties along with mortgage buyouts from our own reverse mortgage portfolio. The securitization trusts issued senior and mezzanine class Notes to third party investors. We retain certain mezzanine class Notes and ownership interests and service the underlying assets. As servicer, we are required to make certain servicing and principal advances that will not be reimbursable to us until all payments of interest and principal have been made to

noteholders. We determined we were the primary beneficiary, and thus consolidate the securitization trusts and related depositors. Recourse for the Notes is limited to the assets of the respective securitization trusts. Also refer to Note 12 – Borrowings.


OLIT transactions - assets and liabilities	March 31, 2026		December 31, 2025
Mortgage loans (Loans held for sale, at fair value)	$	967.2	$	698.2
Receivables, net	168.8		62.6
REO (Other assets)	97.7		81.0
Debt service and Interest reserve accounts (Restricted cash)	50.7		26.5


Total assets	$	1,284.4	$	868.4

Outstanding borrowing UPB (Reverse mortgage securitization notes, net)	1,389.7		951.9
Unamortized discount and debt issuance costs (Reverse mortgage securitization notes, net)	(68.7)		(52.6)
Accrued expenses and Accrued interest (Other liabilities)	2.8		2.6
Total liabilities	$	1,323.8	$	901.9

We pledged certain servicing advances as collateral to our advance financing facilities, referred to as advance match funded liabilities. with the use of SPEs that we consolidate and include in our consolidated financial statements. Holders of the debt issued by these entities have recourse only to the assets of the SPE for satisfaction of the debt.

We consolidate SPEs (referred to as ESR Trusts) in connection with third-party financing facilities secured by GSE MSRs and one SPE (PMC PLS ESR Issuer LLC or PLS Issuer) in connection with our PLS MSR financing facility.

We determined that the ESR Trusts established in connection with the GSE MSR financing facilities, and PLS Issuer established in connection with the PLS MSR financing facility, are VIEs for which we are the primary beneficiary. Therefore, we have included the ESR Trusts and PLS Issuer in our consolidated financial statements. In addition, Onity guarantees the obligations under the ESR Trusts facilities.