The following table presents MSR related financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, and MSR excess servicing spread (ESS) financing liability carried at fair value pursuant to our election of the fair value option for risk management purposes.


	Outstanding Balance
Borrowing Type	September 30, 2026		December 31, 2025




Pledged MSR liability, at fair value (1) (2)	$	346.8	$	573.2

ESS financing liability, at fair value (3)	266.3		268.8
Total MSR related financing liabilities, at fair value	$	613.1	$	842.0

(1)MSRs transferred in transactions which do not qualify for sale accounting treatment. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred to as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. The fair value of the Pledged MSR liability may differ from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by Onity or other contractual cash flows.

(2)Includes $38.5 million and $110.6 million fair value, and $3.3 billion and $8.3 billion UPB related to Rithm at September 30, 2026 and December 31, 2025, respectively. On October 31, 2025, we were notified by Rithm of its intent not to renew its subservicing agreements. As of September 30, 2026, Rithm and Onity do not expect to receive the required consents to transfer the remaining portfolio - see below under “Rithm Transactions”.

(3)Consists of the obligation to remit to third parties a specified percentage of future servicing fee collections (excess servicing spread) on reference pools of mortgage loans, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustments, net - See Note 9 – MSR Valuation Adjustments, Net.

The following table presents the activity of the MSR related financing liabilities, at fair value that are classified as Level 3 within the valuation hierarchy.


MSR related financing liabilities - Fair value	Three Months Ended September 30,		Nine Months Ended September 30,

	2026			2025		2026		2025
Beginning balance	$	729.0		$	818.1	$	842.0	$	846.9
ESS issuances	—			12.7		8.6		12.7




MSR transfers	9.8			7.9		25.2		22.1




ESS settlement (1)	—			—		(20.8)		—
Derecognition of financing liability (2) (3) (4)	(126.6)			—		(249.7)		(12.2)

Fair value (gain) loss
Changes in fair value due to inputs and assumptions	15.3			1.2		59.0		5.3


Realization of cash flows	(14.4)			(18.0)		(51.2)		(52.8)
Total fair value (gain) loss	0.9			(16.8)		7.8		(47.5)
Ending balance	$	613.1		$	822.0	$	613.1	$	822.0

(1)On January 5, 2026 we completed a sale of certain owned MSRs, with subservicing retained with a UPB of $1.3 billion. The sale proceeds were used to settle the related outstanding ESS financing liability. Refer to Note 7 – Mortgage Servicing.

(2)During the three months ended September 30, 2026, we derecognized $85.1 million of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to third parties with a UPB of $5.1 billion.

(3)During the three and nine months ended September 30, 2026, we derecognized $41.5 million and $58.7 million, respectively, of Rithm MSRs and the Pledged MSR Liability with a UPB of $3.4 billion and $4.6 billion, respectively, as MSR sale accounting criteria were met upon our transfer of title to the MSRs in connection with Rithm’s exercise of its termination right of the agreement with Onity disclosed below under “Rithm Transactions.”

(4)On June 30, 2026, we derecognized $105.9 million of the Pledged MSR liability associated with other MSR capital partners with a UPB of $5.9 billion as MSR sale accounting criteria were met.

The following table presents the Pledged MSR liability expense recorded in connection with MSR sale agreements that do not qualify for sale accounting (transferred MSR) and ESS financing liabilities.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Servicing fees collected on transferred MSRs	$	19.7	$	31.4	$	78.2	$	96.3
Less: Subservicing fee retained by Onity	(3.3)		(5.3)		(12.8)		(16.7)
Ancillary fee/income and other settlement (including expense reimbursement)	1.0		2.8		7.4		8.0
Transferred MSR net servicing fee remittance	17.4		28.9		72.8		87.7
ESS servicing spread remittance	12.5		12.7		37.9		38.9
Pledged MSR liability expense	$	29.9	$	41.7	$	110.7	$	126.6

Starting in 2012, Onity and OMC entered into agreements to sell MSRs and the related servicing advances to Rithm, for which OMC has been retained as subservicer. Since December 31, 2023, we have accounted for the relationships in two ways: (i) as an MSR transfer that does not qualify for sale accounting with a UPB of $3.3 billion which are referred to as Rights to MSRs (RMSR) and accounted for as a secured borrowing, with $38.5 million MSR and associated Pledged MSR liability on our consolidated balance sheet as of September 30, 2026; and (ii) as subservicing agreements for a UPB of $0.5 billion (UPB balances as of September 30, 2026).

The RMSR agreement and subservicing agreements were subject to automatic one-year renewals, subject to advance notice of termination. On October 31, 2025, we were notified by Rithm of its intent not to renew its subservicing agreements effective January 31, 2026. The termination is for convenience and not for cause. Onity will continue to service the remaining $3.3 billion of UPB presently subject to the RMSR agreement as the parties do not expect to receive consent to transfer.

The servicing transfer to Rithm’s own servicing platform began in the first quarter of 2026. The following table summarizes the timing of transfers to Rithm by servicing relationship:


	Nine Months Ended September 30, 2026
UPB of loans transferred ($ billions)	RMSR		Subservicing
First quarter (1)	$	1.2	$	0.6
Second quarter (2)	—		21.2
Third quarter (3)	3.4		0.6
Total	$	4.6	$	22.4

OMC entered into agreements to sell MSR portfolios to different third parties, referred to as MSR capital partners, on a bulk and flow basis, for which OMC has been retained as subservicer. While MSR legal title has transferred to the MSR capital partners, the transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreements. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheets.