v3.26.1
Borrowings
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Borrowings
Note 12 – Borrowings
Advance Match Funded Liabilities
Remaining Borrowing Capacity
Outstanding Balance
Borrowing Type
Expected Repayment Date (1)
Uncommitted
Committed
March 31, 2026December 31, 2025
 $350 million Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2025-VF1 (2)
September 2027$— $110.9 $239.1 $273.2 
 $100 million Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (2)
May 2027— 96.0 4.0 4.5 
 $350 million PGAF Issuer LLC - Advance Receivables Backed Notes, Series 2025-VF1 (2)
May 2027— 301.7 48.3 63.7 
 $14.4 million EBO Advance facility (3)
May 202614.4 — — 0.5 
Total Advance match funded liabilities$14.4 $508.7 $291.3 $341.9 
Weighted average interest rate (4)
5.51 %5.81 %
(1)The Expected Repayment Date of our facilities, as defined, is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance is required if the note is not renewed or extended.
(2)The committed borrowing capacity under the OMART, OGAF and PGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At March 31, 2026, none of the remaining borrowing capacity of these advance financing notes could be used based on the amount of eligible collateral.
(3)At March 31, 2026, none of the remaining borrowing capacity of the facility could be used based on the amount of eligible collateral.
(4)The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At March 31, 2026 and December 31, 2025, the balance of unamortized prepaid lender fees was $1.9 million and $2.0 million, respectively, and are included in Other assets in our consolidated balance sheets.
Mortgage Warehouse Facilities
Remaining Borrowing Capacity
Outstanding Balance
Borrowing Type
Uncommitted
Committed (1)
March 31, 2026December 31, 2025
Total mortgage warehouse facilities (2)
$1,589.5 $312.5 $2,193.0 $1,224.6 
Weighted average interest rate (3)
5.09 %5.24 %
(1)Of the borrowing capacity on mortgage loan financing facilities extended on a committed basis, none of the remaining borrowing capacity could be used at March 31, 2026 based on the amount of eligible collateral that could be pledged on a committed basis.
(2)We use mortgage loan repurchase agreements, participation agreements and other warehouse facilities with various financial institutions to fund newly-originated or purchased loans on a short-term basis until they are sold or securitized to secondary market investors, and to fund repurchases of certain Ginnie Mae forward loans, HECM loans and other types of loans or mortgage related assets. Our warehouse facilities generally have maximum terms of 364 days, and have typically been, and are expected to be renewed, replaced or extended annually. We have pledged Loans held for sale (LHFS), Reverse LHFS, Servicing Advances, Receivables and REO as collateral to secure the borrowings. The facilities have contractual maturities ranging from May 2026-April 2027.
(3)The weighted average interest rate excludes the effect of the amortization of discount, debt issuance costs, and prepaid lender fees. At March 31, 2026 and December 31, 2025, unamortized prepaid lender fees were $1.1 million and $1.1 million, respectively, and are included in Other assets in our consolidated balance sheets. At March 31, 2026 and December 31, 2025, 1-Month (1M) Term Secured Overnight Financing Rate (SOFR) was 3.66% and 3.69%, respectively.

Reverse Mortgage Securitization Notes
Outstanding Balance
Borrowing TypeMaturity
Mandatory call date
Initial principal amount
March 31, 2026December 31, 2025
OLIT Asset-Backed Notes, Series 2023-HB1 (1)
June 2036June 2026$264.9 $67.3 $76.5 
OLIT Asset-Backed Notes, Series 2024-HB1 (1)
February 2037February 2027268.6 111.4 116.1 
OLIT Asset-Backed Notes, Series 2024-HB2 (1)
August 2037August 2027330.6 183.4 193.8 
OLIT Asset-Backed Notes, Series 2025-HB1 (1)
June 2038
June 2028322.5 178.8 194.7 
OLIT Asset-Backed Notes, Series 2025-HB2 (1)
November 2038
November 2028413.3 337.0 370.8 
OLIT Asset-Backed Notes, Series 2026-HB1 (1)
March 2039
March 2029511.9 511.9 — 
Total Reverse mortgage securitization notes - outstanding principal amount1,389.7 951.9 
Unamortized discount and debt issuance costs (2)
(68.7)(52.6)
Total Reverse mortgage securitization notes, net$1,321.0 $899.3 
(1)Different classes of Asset-Backed Notes were issued at a discount and a mandatory 3-year call date . We have the option to redeem the notes at any time prior to the mandatory call date, at a 1% premium for a specified period of time after issuance (generally one year) and at par value thereafter. Payments of interest and principal are made from available funds from a pool of reverse mortgage buyout loans and REOs in accordance with the indenture priority of payments. We have pledged Reverse LHFS, Receivables and REO as collateral to secure the borrowings. Also see Note 2 – Securitizations and Variable Interest Entities.
(2)The notes have a stated interest rate of 3.0%, 3.0%, 5.0%, 3.0%, 3.0% and 3.0% respectively. The interest rate excludes the effect of the amortization of discount and debt issuance costs.
MSR Financing Facilities
Remaining Borrowing Capacity
Outstanding Balance
Borrowing TypeCollateralMaturity
Uncommitted
Committed (1)
March 31, 2026December 31, 2025
$750 million GSE MSR financing facility (2)
MSRsAugust 2026$— $89.9 $660.1 $633.1 
$450 million Ginnie Mae MSR financing facility (3)
MSRs, AdvancesJanuary 202725.5 — 424.5 371.4 
$70 million PLS MSR financing facility (4)
MSRsFebruary 202748.5 — 21.5 67.8 
$250 million GSE MSR financing facility (5)
MSRsMay 2027— 2.3 247.7 194.5 
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 MSRsFebruary 2028— — 17.3 18.5 
Total MSR financing facilities$74.1 $92.2 $1,371.0 $1,285.2 
Weighted average interest rate (6)
6.53%6.70%
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, $49.9 million of the remaining borrowing capacity could be used at March 31, 2026 based on the amount of eligible collateral that was pledged and could be financed on a committed basis.
(2)Our obligations under this facility are secured by a lien on certain GSE MSRs. Onity guarantees the obligations under this facility. See Note 2 – Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. In January 2026, the maturity date was extended to May 2026. In April 2026, the maturity date was extended to August 2026.
(3)Our obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and servicing advances. Onity guarantees the obligations under the facility. We are subject to daily margining requirements under the terms of the facility. In January 2026, the borrowing capacity was increased to $450.0 million from $400.0 million and the maturity date was extended to January 2027. In April 2026, the borrowing capacity was further increased from $450.0 million to $500.0 million.
(4)Under this repurchase agreement, OMC sold the membership interest certificate representing 100% of the limited liability company interests in PLS Issuer and agreed to repurchase such membership interest certificate at a specified future date at the price set forth in the repurchase agreement. Onity guarantees the obligations of OMC under the facility subject to the terms and conditions set forth in the guaranty secured by a lien on the related PLS MSRs. In February 2026, the maturity date was extended to February 2027. See Note 2 – Securitizations and Variable Interest Entities for additional information.
(5)This facility is secured by a lien on certain of our GSE MSRs and is subject to daily margining requirements. Onity guarantees the obligations under the facility.
(6)Weighted average interest rate excludes the effect of the amortization of debt issuance costs and prepaid lender fees. At March 31, 2026 and December 31, 2025, unamortized prepaid lender fees related to revolving-type MSR financing facilities were $1.9 million and $1.5 million, respectively, and are included in Other assets in our consolidated balance sheets.
Senior NotesInterest Rate (1)MaturityOutstanding Balance
March 31, 2026December 31, 2025
Senior Notes Due 20299.875%November 2029$700.0 $500.0 
Unamortized premium
6.2— 
Unamortized discount (1.7)(1.8)
Unamortized debt issuance costs (11.8)(8.6)
Unamortized premium, discount and debt issuance costs
(7.2)(10.4)
Senior notes, net$692.8 $489.6 
(1)Excludes the effect of the amortization of debt issuance costs, premium and discount.
On November 6, 2024, PHH Corporation issued $500.0 million aggregate principal amount of 9.875% Senior Notes due November 1, 2029 (Senior Notes Due 2029) at a price of 99.556% of the principal amount in a syndicated private placement. Interest on the Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025, and principal is due at maturity. The Senior Notes Due 2029 are guaranteed by Onity and certain wholly-owned
subsidiaries including OMC and PAS) (collectively “restricted subsidiaries”). The Senior Notes Due 2029 are secured by the equity interests of the restricted subsidiaries and any Available Cash in excess of Agency Requirements, as defined.
On January 30, 2026, PHH Corporation issued $200.0 million aggregate principal amount of 9.875% Senior Notes Due 2029 in a syndicated private placement exempt from registration under the Securities Act of 1933, as amended. The Senior Notes were issued to investors at 103.25% of the principal amount. The notes were offered as an additional issuance of the 9.875% Senior Notes Due 2029 and form a single series of debt securities with the $500.0 million aggregate principal amount of such notes that were originally issued on November 6, 2024. The interest on the additional notes issued in January 2026 is payable semi- annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2026, and principal is due at maturity. The notes are guaranteed on a senior secured basis by Onity and certain of PHH Corporation’s subsidiaries, including OMC and PAS.
On or after November 1, 2026, PHH Corporation may redeem some or all of the Senior Notes Due 2029 at its option at the following redemption prices, plus accrued and unpaid interest:
Redemption Year (12-month period beginning on November 1st of the years indicated below)
Redemption Price
2026104.938 %
2027102.469 
2028 and thereafter100.000 
Prior to November 1, 2026, PHH Corporation may redeem some or all of the Senior Notes Due 2029 at its option at a redemption price equal to 100% of the principal amount of the Notes being redeemed with a “make-whole” premium, as defined, plus accrued and unpaid interest. In addition, prior to November 1, 2026, PHH Corporation may redeem up to 40% of the aggregate principal amount of the notes with the net cash proceeds from certain equity offerings by Onity at the redemption price equal to 109.875% of the principal amount plus accrued and unpaid interest.
The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH Corporation, Onity and its restricted subsidiaries to, among other things, (i) incur or guarantee additional Indebtedness, as defined, (ii) incur liens, (iii) pay dividends on or make distributions or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with certain affiliates.
Covenants
Under the terms of our debt agreements in effect as of March 31, 2026, we are subject to various affirmative and negative covenants. Collectively, these covenants include:
•Financial covenants, including, but not limited to, specified levels of net worth, liquidity and leverage;
•Covenants to operate in material compliance with applicable laws;
•Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Onity and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Onity and its subsidiaries or of PHH Corporation, OMC or PAS and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates;
•Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and
•Requirements to provide audited financial statements within specified timeframes, including requirements that Onity’s financial statements and the related audit report be unqualified as to going concern.
The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at March 31, 2026 is a minimum of $275.0 million and $125.0 million, tangible net worth for Onity and OMC, respectively. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at March 31, 2026 is for a minimum of $86.2 million and $20.0 million for Onity and OMC, respectively. None of our debt agreements have any tangible net worth or liquidity requirements at PAS due to the guarantee of Onity. See Note 20 – Regulatory Requirements for our regulatory capital and liquidity requirements.
We believe we were in compliance with all of the covenants in our debt agreements as of the date of these unaudited consolidated financial statements.
Collateral
Our assets pledged as collateral for secured borrowings are as follows at March 31, 2026. Assets may also be subject to other liens or restrictions under various agreements.
AssetsPledged
Assets
Collateralized Financings (9)
Liability Categories
Cash (1)
$182.5 $— $— 
n/a (1)
Restricted cash (2)
124.7 66.0 — 
Multiple
Owned MSRs, excluding ESS (3) (5)
2,136.3 2,141.2 1,313.4 
MSR financing facilities
Transferred MSRs, including ESS (4)
889.6 889.6 813.4 
MSR related financing liabilities and MSR financing facilities (4)
Advances, net (5)
431.1 376.7 330.1 
Advance match funded liabilities and MSR financing facilities
Loans held for sale3,150.2 3,099.8 3,167.2 
Mortgage warehouse facilities and Reverse mortgage securitization notes
Reverse loans held for sale pooled into HMBS - securitized (6) (7)
9,533.2 9,533.2 9,437.4 
HMBS- related borrowings
Reverse loans held for sale pooled into HMBS- unsecuritized (7)
63.3 34.0 29.4 
Mortgage warehouse facilities
Receivables, net365.0 260.0 273.0 
Mortgage warehouse facilities and Reverse mortgage securitization notes
REO (Other assets)
101.0 98.3 113.1 
Mortgage warehouse facilities and Reverse mortgage securitization notes
Total (8)
$16,976.8 $16,498.9 $15,477.1 
(1)Includes $145.3 million Available Cash held by Regulated Subsidiary Guarantors, as defined, pursuant to the Senior Notes Due 2029.
(2)Pledged assets primarily include amounts specifically designated to repay debt and to provide over-collateralization for MSR financing facilities, reverse mortgage securitization notes, mortgage warehouse facilities and match funded debt facilities (debt service accounts).
(3)Pledged assets exceed the MSR asset balance primarily due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral.
(4)Includes MSRs transferred MSR capital partners that are accounted for as secured financings and ESS pledged MSRs. Includes $18.8 million MSR financing facilities.
(5)$38.8 million drawn under the $450.0 million Ginnie Mae MSR financing facility is used to finance Ginnie Mae related advances.
(6)Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of OMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to OMC in connection with certain claims relating to the performance and obligations of OMC as both issuer of HMBS and servicer of HECMs underlying HMBS.
(7)See Note 5 - Reverse Mortgages.
(8)The total of selected assets disclosed in the above table does not represent the total consolidated assets of Onity. For example, the total excludes contingent loan repurchase asset, premises and equipment and certain other assets.
(9)Amounts represent UPB and fair value for borrowings accounted for at amortized cost and fair value, respectively.