v3.26.3
Reverse Mortgages
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Reverse Mortgages
Note 5 - Reverse Mortgages
On April 30, 2026, OMC and FAR amended the November 2025 sale agreements whereby OMC agreed to sell a portion of its reverse MSRs, comprised of approximately 20,000 (or 58%) of our portfolio of Ginnie Mae HECM loans, and the associated HMBS-related borrowings, and FAR agreed to acquire OMC’s reverse mortgage originations pipeline as of the closing date. OMC subservices the sold portfolio and additional loans from FAR for an initial three-year term effective on the closing date, subject to an automatic one-year renewal unless FAR provides notice of non-renewal 180 days prior to the expiration of the initial term, and thereafter to renewal upon mutual agreement of the parties. For a period of five years following the closing date, OMC no longer originates reverse mortgages, except for activities relating to the recapture of existing HECM borrowers for HECM MSRs not sold to FAR. The amended transaction was approved by Ginnie Mae on May 28, 2026 and closed on June 30, 2026. As of September 30, 2026, including post-closing adjustments, the sold balances included $5.6 billion securitized assets ($5.2 billion UPB), the associated $5.5 billion HMBS-related borrowings (or net $70 million reverse MSR), and $57 million newly originated reverse loans and tails pending securitization.
The following table presents the estimated fair value of Reverse loans held for sale pooled into HMBS, at fair value or Reverse loans held for investment pooled into HMBS, at fair value. Loans were reclassified from held for investment to held for sale (at fair value pursuant to the fair value election) at December 31, 2025 as we intended and agreed to sell the entire portfolio of reverse loans to FAR in November 2025 along with the HMBS-related borrowings at book value (determined at closing of the transaction). Effective with the amendment of the agreement on April 30, 2026, the reverse loans not sold to FAR were reclassified as held for investment. The reverse loans described herein exclude reverse loans pledged as collateral for the asset-backed securitization notes issued by OLIT and certain non HECM loans which are classified as Loans held for sale, at fair value on the face of the consolidated balance sheets for all periods presented.
September 30, 2026December 31, 2025
Unpaid principal balance
$3,310.0 $9,333.0 
Fair value adjustments
52.6 474.5 
Total fair value
$3,362.6 $9,807.5 
The following table presents the composition of reverse mortgage loans by type:
September 30, 2026December 31, 2025
HECM loans - securitized, pledged to HMBS-related borrowings (1)
$3,350.0 $9,703.1 
HECM loan originations and HECM loan tails (2) (3) - unsecuritized
12.6 104.4 
Total fair value
$3,362.6 $9,807.5 
(1)The Ginnie Mae securitization of conventional, HECM loans does not qualify for sale accounting treatment and is accounted for as a secured financing transaction, with the recognition of both loans and HMBS-related borrowing on the consolidated balance sheets.
(2)Tails include draws on securitized HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize.
(3)As of September 30, 2026 and December 31, 2025, the balance includes nil and $58.4 million, respectively, of HECM loan originations pending pooling into HMBS (pipeline loans).
The following table summarizes the activity in reverse mortgage loans and HMBS-related borrowings that do not qualify for sale accounting and for which we elected the fair value option:
Three Months Ended September 30,
20262025
Reverse Mortgage
Loans Held for Sale		Reverse Mortgage Loans Held for Investment
HMBS - Related Borrowings
Reverse Mortgage
Loans Held for Investment
HMBS - Related Borrowings
Beginning balance$— $3,640.6 $(3,610.9)$10,470.8 $(10,253.1)
Originations (1)
0.3 26.6 — 249.3 — 
Sale(0.2)— — — — 
Securitization of HECM loans accounted for as a financing
— — (25.5)— (269.3)
Additional proceeds from securitization of HECM loans and tails— — (0.4)— (5.9)
Repayments (principal payments received) (2)
— (320.8)318.4 (778.3)770.2 
Transfers to:
Loans held for sale, at fair value(0.1)(0.5)— (6.1)— 
Receivables, net
— (1.2)— (1.4)— 
REO (Other assets)— — — (0.5)— 
Other
— 1.0 — 4.9 — 
Fair value gains (losses) included in earnings (3)
— 16.9 (16.7)178.6 (166.5)
Ending balance$— $3,362.6 $(3,335.1)$10,117.4 $(9,924.6)
(1)Originations subsequent to the closing of the FAR transaction on June 30, 2026 represent draws or tails on HECM loans which were not sold.
(2)The $320.8 million repayments of reverse mortgage loans for the three months ended September 30, 2026 represents repayments of loans that were classified as held for sale and previously held for investment, which remain presented as investing cash flows in the consolidated statement of cash flows.
(3)See further breakdown of the net gain (loss) in the table below. Includes interest accruals.
Nine Months Ended September 30,
20262025
Reverse Mortgage
Loans Held for Sale		Reverse Mortgage Loans Held for InvestmentHMBS - Related Borrowings Reverse Mortgage
Loans Held for Investment		HMBS - Related Borrowings
Beginning balance$9,807.5 $— $(9,611.7)$11,125.3 $(10,872.1)
Originations 279.6 45.3 — 794.8 — 
Sale (5,629.8)— 5,503.1 — — 
Securitization of HECM loans accounted for as a financing
— — (357.1)— (847.0)
Additional proceeds from securitization of HECM loans and tails— — (11.8)— (13.0)
Repayments (principal payments received) (1)
(870.9)(565.4)1,424.2 (2,341.6)2,314.8 
Reclassifications (1)
(3,837.3)3,837.3 — — — 
Transfers to:
Loans held for sale, at fair value(2.3)(1.2)— (11.8)— 
Receivables
(2.1)(1.5)— (6.3)— 
REO (Other assets)(0.2)(0.1)— (0.8)— 
Other
1.9 1.7 — 4.8 — 
Fair value gains (losses) included in earnings (1)
253.5 46.4 (281.8)553.1 (507.2)
Ending balance$— $3,362.6 $(3,335.1)$10,117.4 $(9,924.6)
(1)As described above, on April 30, 2026 the portion of the Reverse mortgage loans which were not sold to FAR were reclassified to held for investment. The $1,436.3 million repayments of reverse mortgage loans for the nine months ended September 30, 2026 include $1,434.1 million of repayments of loans that were classified as held for sale and previously held for investment, which remain presented as investing cash flows in the consolidated statement of cash flows.
The following table presents the Fair value gains (losses) on reverse loans and HMBS-related borrowings included in earnings:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Fair value gains (losses) of Reverse mortgage loans
$17.0 $178.6 $299.9 $553.1 
Fair value gains (losses) of HMBS related borrowings
(16.7)(166.5)(281.8)(507.2)
Total fair value gains (losses) included in earnings
$0.3 $12.0 $18.1 $45.9 
The following table presents the components of Gain (loss) on reverse loans and HMBS-related borrowings, net:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Gain on new originations (1)
$— $5.4 $6.1 $16.5 
Net interest income (servicing fee) (2)
2.4 7.8 16.7 24.2 
Other change in fair value of securitized loans and HMBS-related borrowings, net
(2.1)(1.2)(4.7)5.3 
Fair value gains (losses) included in earnings (3)
0.3 12.0 18.1 45.9 
HECM hedging derivative gains (losses) (4)
6.6 — 11.4 — 
Loan fees and other— 1.0 (0.1)2.8 
Total $6.9 $13.0 $29.4 $48.7 
(1)Includes the changes in fair value of newly originated reverse mortgage loans in the period from interest rate lock commitment date through securitization date.
(2)Includes the interest income on reverse mortgage loans less the interest expense on HMBS-related borrowings. The net interest income includes the servicing fee Onity is contractually entitled to on securitized loans.
(3)See breakdown between Reverse mortgage loans and HMBS-related borrowings in the table above.
(4)We began separately hedging our reverse exposure to interest rates in the fourth quarter of 2025 (also refer to Note 15 – Derivative Financial Instruments and Hedging Activities).