Latest news with #OnityGroup
Yahoo
a day ago
- Business
- Yahoo
Onity Group price target raised to $55 from $50 at B. Riley
B. Riley raised the firm's price target on Onity Group (ONIT) to $55 from $50 and keeps a Buy rating on the shares after meeting with management. The firm 'came away with several positive takeaways.' Onity will move to a 'more normal valuation' around its stated book value of $58 per share given the good diversification of the business, continued product and service innovations, and supportive public company transaction activity this year, the analyst tells investors in a research note. Riley believes merger activity in the mortgage sector are key support for the shares. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on ONIT: Disclaimer & DisclosureReport an Issue PHH Mortgage expands partnership with Blend Labs Onity Group management to meet virtually with B. Riley Onity Group Holds Annual Shareholder Meeting Onity Group files to sell 2.11M shares of Series B Perpetual Preferred stock Onity Group price target raised to $50 from $45 at Keefe Bruyette
Associated Press
04-06-2025
- Business
- Associated Press
PHH Mortgage Receives Residential Servicing Ratings Upgrade from Fitch Ratings
WEST PALM BEACH, Fla., June 04, 2025 (GLOBE NEWSWIRE) -- PHH Mortgage ('PHH' or the 'Company'), a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, today announced that Fitch Ratings has upgraded its residential primary servicer ratings and indicated a Stable Rating Outlook. Fitch's most recent ratings upgrades, which are generally considered Above Average, include: In addition, Fitch affirmed the Company's commercial small balance primary and special servicer ratings at 'SBPS2-' and 'SBSS2-', respectively, and residential master servicing rating at 'RMS3'. 'The ratings upgrade from Fitch reflects the strength of our balanced and diversified business and our commitment to operational and financial discipline while driving growth across multiple channels,' said Scott Anderson, Executive Vice President and Chief Servicing Officer. 'We are extremely proud of the industry top-tier servicing platform we have built and our experienced team that is dedicated to creating positive outcomes for our customers. As the mortgage market and consumer needs evolve, we continue to make purposeful investments to elevate the customer experience and implement innovative technology solutions for the benefit of our customers, clients, investors and employees.' Key drivers of PHH's upgraded and affirmed ratings and Stable Outlook: For more information on Fitch's ratings announcement, please read here. About Onity Group Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation's largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit For Further Information Contact: Investors: Valerie Haertel, VP, Investor Relations (561) 570-2969 [email protected] Media: Dico Akseraylian, SVP, Corporate Communications (856) 917-0066 [email protected]
Yahoo
03-05-2025
- Business
- Yahoo
Onity Group Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a pretty great week for Onity Group Inc. (NYSE:ONIT) shareholders, with its shares surging 12% to US$36.99 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of US$250m were what the analysts expected, Onity Group surprised by delivering a (statutory) profit of US$2.50 per share, an impressive 49% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, the current consensus from Onity Group's three analysts is for revenues of US$1.03b in 2025. This would reflect a satisfactory 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 198% to US$9.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.04b and earnings per share (EPS) of US$8.14 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result. View our latest analysis for Onity Group The consensus price target was unchanged at US$44.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Onity Group analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$40.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Onity Group's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Onity Group to grow faster than the wider industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Onity Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Onity Group going out to 2027, and you can see them free on our platform here.. You still need to take note of risks, for example - Onity Group has 2 warning signs (and 1 which is potentially serious) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Q1 2025 Onity Group Inc Earnings Call
Valerie Haertel; Investor Relations; Onity Group Inc Glen A. Messina; Chief Executive Officer; Onity Group Inc Sean O'Neil; Chief Financial Officer; Onity Group Inc Randy Binner; Analyst; B. Riley Securities Bose George; Analyst; KBW Eric Hagen; Analyst; BTIG Operator Good day, everyone, and welcome to the Onity Group's first quarter earnings and business updated conference call. (Operator Instructions). It is now my pleasure to turn the conference over to Valerie Haertel, Vice President of Investor Relations. Please go ahead. Valerie Haertel Thank you. Good morning and welcome to Onity Group's first quarter 2025 earnings call. Please note that our earnings release and presentation are available on our website at Speaking on the call will be Chair, President and Chief Executive Officer Glen Messina and Chief Financial Officer Sean O'Neil. As a reminder, our comments today may contain forward-looking statements made pursuing. To the safe harbor provisions of the federal securities laws, these statements may be identified by reference to a future period or by use of forward-looking terminology and address matters that are uncertain. Forward-looking statements speak only as of the date they are made and involve assumptions, risks, and uncertainties, including those described in our SEC filings. In the past, actual results have differed materially. From those suggested by forward-looking statements, and this may happen again. In addition, the presentation and our comments contain references to non-GAAP financial measures such as adjusted pre-tax income. We believe these non-GAAP measures provide a useful supplement to discussions and analysis of our financial condition because they are measures that management uses to assess the performance of our operations and allocate resources. Non-GAAP measures should be viewed in addition to and not as an alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures and management's reasons for including them may be found in the press release and the appendix to the investor presentation. Now I would like to turn the call over to Glen Messina. Glen A. Messina Thank you, Valerie. Good morning, everyone, and thanks for joining our call. Looking forward to sharing a few highlights for the first quarter, as well as review our strategy and financial objectives to deliver long-term value for our shareholders. Let's get started on slide three. I want to start with three key themes today. First, we're delivering on our 2025 operating priority to accelerate growth in originations volume and total servicing UPB. Second, our growth in book value and adjusted ROE performance demonstrate that our strategy is sound and execution is on track. And third, we believe our balanced business positions us for success in high and low-interest rate environments. Let's turn to slide four to review a few highlights for the quarter. Despite unpredictable market conditions, we delivered strong financial performance in the first quarter with adjusted pre-tax income of $25 million and annualized adjusted ROE of 22%, which exceeds our guidance. GAAP net income attributable to common shareholders of $21 million or $250 per share, fully diluted, reflects an annualized return on equity of 19% and is above consensus. Average servicing UPB of $305 billion for the quarter is up $13 billion versus the first quarter of 2024. Total servicing additions of $17 billion is down from the first quarter of '24, primarily due to lower subservicing additions related to the timing of bulk boardings. However, owned MSR editions more than doubled versus the first quarter '24. And finally, book value per share was up approximately 4% versus Q1 '24 and up approximately 2% versus year-end '24. We're pleased with our results for the quarter, which reflects the strength of our business and solid execution from our team. Let's turn to slide five to discuss how we're positioned for the balance of 2025. We believe 2025 will be a dynamic and unpredictable year. We're expecting continued interest rate and GSC price volatility, which is likely to generally impact hedge costs and drive unpredictable surges in refinancing activity and origination margin volatility. The Mortgage Bankers Association and Fannie Mae estimate for industry origination volumes expected to be up 17% year over year. While not out of the realm of possibility, it is dependent on a 9% increase in home purchase volume and a 39% increase in refinancing volume. Economists have commented that the probability of a recession has increased since the beginning of the year, although we have not yet seen a deterioration in mortgage delinquencies. We believe the Rocket acquisition of Mr. Cooper has the potential to accelerate M&A activity for two primary reasons the desire to accelerate servicing scale. And a desire to own servicing capability. In addition, M&A activity over the past 12 months to 18 months amongst companies who had large concentrations of sub-servicing is giving rise to an increase in financial institutions exploring their options for sub-servicing providers. We believe we're well positioned for this dynamic environment and we're maintaining our full year guidance. Our balanced business continues to demonstrate the resilience to successfully navigate high and low interest rates. We have a terrific servicing platform that is delivering top tier performance for the benefit of customers and investors. We believe our servicing portfolio mix and special servicing skills will help minimize advancing and delinquencies in the event of a recession and create delinquents of servicing growth opportunities. We are accelerating growth, consistent with our planned actions, and we believe we're on track to achieve our portfolio growth objectives. Should interest rates decline, we have an agile and high performing recapture platform that continues to close the GAAP to best practice. And as always, in this dynamic environment, we are maintaining the flexibility to evaluate all options to create value for shareholders. Let's turn to slide six for more about our balanced business. We believe our balanced business is positioned to perform well with high or low interest rates. As you can see, even with the sharp increase in interest rates from 2021, our total business is delivering improved performance driven by our servicing platform. Q1 '25 adjusted pre-tax income of $48 million for origination and servicing reflects both segments are operating profitably with servicing delivering most of our segment earnings. As in 2021, if interest rates were to materially decline, industry origination volume and margins typically expand while servicing runoff increases. In this scenario, we would expect originations to deliver most of our earnings. Given the current outlook for interest rates, we expect servicing will continue to be the predominant earnings contributor for 2025, with industry originations volume projected to increase modestly. Let's turn to slide seven for more about our servicing platform. We've built a strong servicing platform, and our team is delivering industry leading performance on multiple dimensions. We service or subservice $1.4 million loans with the total UPB of over $300 billion on behalf of more than 4,000 investors and over 120 sub-servicing clients. We service forward, reverse, and business purpose residential mortgages, and our clients and loan investors include some of the largest financial institutions in the United States. We've been recognized by Fannie Mae, Freddie Mac, and HUD for industry-leaning servicing performance in each of the past four years. Our commitment to technology is evidenced with our automation center of excellence, having been recognized in 2024 as best in class by the Shared Services Outsourcing Network, which is the world's largest community of business services and outsourcing professionals with more than 200,000 global members. During the first quarter, our investment in technology was evident with roughly 89% of customer inquiries handled through digital interface channels and robotic process automation, saving over 60,000 manual work hours a month. Our investments in talent, technology, and global proprietary infrastructure have created a scalable, low cost, high performing platform for investors and customers alike. Our continuous improvement in customer experience is evidenced with a 4.6 and 4.1 out of 5 star satisfaction rating for our call center and load boarding performance respectively, as well as the 61 net promoter score from servicing clients, a score consistent with companies such as Amazon, Apple, and Google. In addition, we were named by the National Association of Mortgage Brokers as one of their affiliate companies of the year for the past two years for our work in reverse mortgage. While we are not the largest servicer in the industry, we deliver top tier performance for customers and investors and are positioned to fiercely compete with anyone regardless of size. Please turn to slide eight to discuss how we're positioned for a recession. Onity's legacy DNA is special servicing. In the event of a recession, we believe our portfolio mix and special servicing skills position the company to minimize our exposure to advances and potentially take advantage of delinquent sub-servicing opportunities. Looking at our portfolio mix, the 51% of our portfolio in sub-servicing has no or limited exposure to advances and generally includes additional revenue to service delinquent loans. The 35% of our portfolio in GSE owned MSRs is generally with higher credit quality consumers, and we have no obligation to advance principal and interest payments after 120 days of delinquency. Only the remaining 14% of our portfolio in PLS and Ginny Mayor and reverse owned servicing has exposure to all advances through resolution. Here's where our special servicing skills make a difference. In the middle of the page you could see how we perform on resolving delinquent loans. For all delinquent loans boarded in 2021 through 2023, 12 months after boarding, we brought 61% of the loans to current or paid in full status and reduced the delinquent population by 60% points. As you can see on the right side of the page. Our ability to resolve delinquent loans is the primary reason why we're able to reduce outstanding advances on our legacy servicing book by 20% year over year, with only a 10% reduction in loan count. We believe our special servicing skills are an asset that can be converted to revenue through delinquent subservicing in a recessionary cycle. Now let's turn to slide nine to discuss the result of our growth actions. In the first quarter, our originations and capital markets teams delivered over 2 times growth in total MSR editions versus Q1 '24 with a 53% increase in originations volume versus an 8% increase for the overall industry during the same period. Our performance in MSR editions is consistent with our objective to retain more MSRs. To grow earnings and book value, as well as reload our portfolio for we capture opportunity. Average total servicing in the first quarter is up $13 billion or approximately 5% year over year. Sub-servicing is roughly flat versus Q1 '24, with additions offsetting runoff and over $16 billion in scheduled transfers from the rhythm and math portfolios over the same period. The runoff in the rhythm subservicing portfolio has really masked our growth performance over the past several years. Since the beginning of 2020, the rhythm subservicing UPB has declined by $84 billion while we increase all other servicing by $176 billion or roughly 2.9 times over the same period. I believe this highlights the power of our origination capability and success of our growth strategy. Switching to our product development activities, we're excited to report that our new product launches are on track. The first quarter rollout of our enhanced closed and second lean product was very well received by customers, with lock volume 3.6 times the same period last year. In April, we launched a proprietary equity IQ reverse mortgage product on schedule, and for the balance of the year. We are targeting to launch several non-agency expanded credit products to further expand the market opportunity we can access. We believe our product development actions expand our adjustable market opportunity, provides access to higher margin market segments, and creates alternatives for our consumer direct platform to maintain operating capacity for surges and refinancing activity. Now, please turn to slide 10 to discuss the progress we made in our recapture platform. Our Consumer Direct team is continuing to improve our recapture capability to near benchmark performance levels while maintaining the flexibility to address mortgage rate volatility. As you can see on the left, funding and lock volume in our consumer direct platform was up 2.7% and 2.5 times respectively in Q1 '25 versus Q1 '24. As compared to 1.4 times for the industry over the same period. Based on our refinancing, recapture benchmarking for the quarter in the last 12 months, excluding home equity products, we believe our platform is performing better than average in several of our public, non-bank, third party origination focused peers and the ICE reported averages. For the first quarter, our refinance recapture rate is on par with our benchmark peer. While we are pleased with our recaptured performance so far, we want to be the benchmark by which all others are measured. To that end, we continue to invest in talent, technology, predictive analytics, products, and marketing to further improve our capability. Now I'll turn it over to Sean to cover our financials and segment performance in more detail. Sean O'Neil Thanks, Glen. Let's turn to slide 11 for our financial performance. 2025 is off to a strong start for us, and the financial metrics reflect that. Here we compare three key metrics year over year. Top-line revenue grew 5% while keeping operating efficiency stable. That combination flowed through to drive adjusted pre-tax income up to $25 million versus $15 million prior to your quarter. The result was an adjusted ROE of 22%, which was well ahead of our guidance of 16% to 18% for full year 25. This continued the upward trajectory of book value per share, with $2.15 book value being added from the first quarter. Overall, we had a robust quarter, added scale to the servicing platform, growing UPB by $13 billion a year. Including growth in our own MSR book by $12 billion and originations was again profitable despite the elevated rate environment. Please turn to slide 12 for our servicing performance in both the forward and reverse space. The servicing segment again remained a strong contributor to adjusted pre-tax income. Forward servicing grew adjusted PTI through increased fee generation. Which was up 6% year over year and 5% from last quarter, driven by the growth in owned servicing, which was up 9% from the prior quarter. Lower MSR runoff also helped to more than offset the seasonally lower first quarter flow income. Reverse servicing was up from the prior quarter, but lower versus prior year. The year over year change was due primarily to strong asset gains in the first quarter of '24, as well as valuation adjustments on buyout loans in the first quarter of '25. Overall, our reverse assets, our recapture capabilities, and our derivatives delivered an effective hedge to the Ford MSR in the first quarter. The right graph shows an illustrative example of the impact of growing subservicing UPB in the subsequent lift and adjusted PTI. This shows the leverage that our operating platform provides as we build scale. And as Glen mentioned, we believe shifts in the competitive landscape that have occurred over the last 12 plus months create opportunities to acquire new clients for subservicing. Let's turn to slide 13 for the results of our origination segment. Originations grew adjusted PTI significantly year over year. This was driven primarily by total volume growing 50% from the first quarter of '24, and the high margin consumer direct channel growing by about 165%. This improvement in consumer direct is driven by the strong recapture capabilities previously mentioned. Generally, the first quarter is the seasonally weaker originations quarter. Industry volume was down 21% quarter over quarter. Despite our lower volume, originations posted a consistent level of adjusted PGI. This was driven by stronger net interest income and improved operating expense. Overall, we continue to operate a profitable originations business with a wide range of products, and we believe we are able to adapt to any interest rate environment. Regarding new high margin products, our additional home equity loan product is showing strong locks, and the reverse proprietary product was successfully rolled out last week. Let's go to slide 14. We'll confirm our guidance for 2025. Our financial objectives remain unchanged. Sustained adjusted PTI growth and earning stability. These are enabled by increased scale and the agility to capture market opportunities. For 2025, we are confirming the guidance we provided last quarter. Continued expectation of a strong adjusted ROE in the range of 16% to 18%, growth in our servicing book to exceed 10% year over year, a consistent hedge ratio targeting 90% to 110%, and a stable efficiency ratio as we prudently add costs commensurate with new revenue. Then we've also included information that we provided in our March 8-K release regarding the reasonable possibility that we will release some or all of our valuation allowance on our US Deferred Tax Assets, or DTA by year-end 2025. For a frame of reference, the total valuation allowance, or VA for the USDTA was about $180 million at the end of '24, and using the '24 year-end share count would create an increase of roughly $22 per share. This increase results from the valuation allowance lifting, which then allows the existing net deferred tax asset to be an accretive impact on net income as an income tax benefit. This in turn increases our stockholder equity by the same amount. This will also have a beneficial impact on their leverage ratio as measured by debt to equity. In closing, I'd like to say this was a strong quarter. We are pleased with our results that exceeded guidance and the trajectory of our business. Back to you, Glen. Glen A. Messina Thanks, Sean. Now please turn to slide 15 for a few comments before we open up the call for questions. I believe we're well positioned to navigate the market environment ahead and deliver long-term value for our shareholders. We've delivered a robust increase in profitability and returns in 2024, and we're off to a great start in 2025. Our performance is the result of our balanced business, capital like growth, top tier operating performance, discipline cost management, and dynamic asset management. Our operating priorities for 2025 are aligned with our strategy and focused on three areas accelerating growth, differentiating operating performance, and elevating the customer experience. Our execution is driven by our experienced team, who are relentlessly focused on delivering on our commitments and providing excellent service to our customers. All this comes together to suggest a share price that we believe has excellent upside, and we intend to continue to take. The actions necessary and maintain the agility in a dynamic marketplace to harvest that value for the benefit of all shareholders. Overall, we could not be more optimistic about the potential for our business. With that, Nikki, let's open up the call for questions. Operator And at this time, if you would like to ask a question, (Operator Instructions). We'll take our first question from Randy Binner with B. Riley. Please go ahead. Your line is open. Randy Binner Oh, okay, thank you. Good morning. Hard to know where to start but obviously really solid quarter and good. Informative call. I guess you know this the valuation allowance news and the kind of detail you provided here is pretty interesting and so I hear that you're saying it's worth $22 a share and I just, generally my experience with these is that there can be, ownership tests and rules of the IRS and timing things that affect. How these. Kind of the value that DTA comes out and so I just want to maybe dig into that a little bit some of the details there or are there really not limitations and it all it could all kind of create to equity value, like on a single date. Sean O'Neil So Randy, thanks for the question. You're right, evaluation allowances are interesting and arcane. Really the key question that, future performance and our continued analysis will show us is that do we lift all or some of the VA? Whether it's some or all of the valuation allowance or VA that then flows through dollar to dollar. It hits net income, it raises book value. So the question is how much of the VA remains, and we look at this by every quarter we analyze positive and negative data. A cumulative loss in recent periods is negative evidence, and we've had the evaluation elements in place since 2015. So we think given our recent strong performance over multiple quarters that we will transition from a cumulative loss in recent years to a cumulative income. Yeah, so that's kind of one of the key parameters. There's several others, but once you make the VA decision, then the math becomes relatively simple. Randy Binner Okay, so there's no like then there's no ownership or other kind of tests that would hold back timing. Sean O'Neil No, I think you're referring to ownership changes which can affect the overall deferred tax asset which apply whether or not you have a valuation allowance and that's due to changes in shareholders over 5%, but that's right 382 that's kind of a separate concept around DTAs. Randy Binner Okay, so that's Sean O'Neil Our DTA has been pretty consistent. The valuation allowance has been in that neighborhood of 175 to 183 for the last several years. We only printed in the K so it shows up once a year. Randy Binner All right, well, I have a bunch of others, but I'll drop back in the queue. Appreciate that Thank you. Glen A. Messina Thanks, Randy. Operator Thank you. Our next question comes from Bose George with KBW. Please go ahead. Your line is open. Bose George Hey guys, good morning. Actually just one follow up on the DTA. Is there any timing in terms of, when it has to be utilized by? Sean O'Neil The vast majority of our DTA is not limited by a time frame. It's post 2000, I think it was 2017 Tax Reform Act, when the DTAs only cover 80% of your taxable income, but they're indefinite, and that's the large majority of almost all of our federal and a good chunk of our state. Bose George Okay, great, thanks. And then actually it looked like there was a legal expense this quarter. Can you just talk about that and then just can you remind us where things stand in terms of, anything else on the regulatory legal side? Glen A. Messina Yeah, I suppose it's it's Glen. So look on the legal side, yeah, we did reach an agreement in principle this quarter to resolve one of our oldest. Legacy class action litigation matters, believe it or not, this thing is nearly two decades old dealing with pre-acquisition PHH practices again that was were discontinued almost two decades ago. So look, we had the opportunity to reach a settlement here, again for this thing carrying on for almost 20 years. It's just let's get it behind us and move on. Bose George Okay, great. And then just as a reminder, is there anything else that's like sort of on the litigation front or regulatory front or is things kind of fully resolved now? Glen A. Messina Yeah, but as we, our 10-K or 10-Q includes what we, believe are, that the, generally the major litigation matters affecting the company. I think, as look, the mortgage industry is subject to litigation from a number of different directions in the ordinary course of business, we and other market participants, can become involved in all sorts of threatened and pending legal matters. And you know that's no different than anybody else in this industry, the biggest thing out there from the prior administration is the just generally an adverse reaction to consumer fees charged to consumers of any type. We and others have been, defending ourselves in a number of different, pending actions or inquiries, regarding convenience fees. And we believe we've complied with the law in every one of those examples, more recently. Resolved one of those matters with HUD, so pretty much where we stand. Bose George Okay, great, thank you. Operator Thank you. (Operator Instructions). We will move next with Eric Hagen with BTIG. Please go ahead. Your line is open. Eric Hagen Hey thanks good morning, guys. I want to ask about the Rocket Cooper merger and what you think is the impact on the subservicing market specifically how much you see that may be driving lower costs for the industry at large are you guys doing anything differently to source new business as a result of the merger and do you feel like it will even maybe change behavior from any of the other subservices in the market? Glen A. Messina Here, look, we, anytime you see a big transaction like that with Rockets announced acquisition of Mr. Cooper, it's big, it's disruptive, it shakes things up a bit. I think there's been a couple of folks who've been very vocal about how they think about the transaction, and, people generally fall, subservicing clients in particular will generally fall into one or two camps. If people feel threatened by Rocket, they're going to want to think about other opportunities and where else could they go where, they're partnering with a player who potentially is not going to be a threat to their business. And in other cases, people look at Rocket and say, who are, love Rocket and, want to be more closely aligned with them. So I think it's a mixed bag, but generally speaking, Yeah, we're seeing, I would say two key themes emerge, on the sub-servicing side, people either wanting to explore their options, but that's, I would say not just solely related to Rocket Cooper. Over the last 12 months to 18 months, there's been a number of, sub-servicing centric platforms that have changed ownership. And, that creates an opportunity for people to consider alternatives and Yeah, we've been very aggressive in growing our sub-servicing business. Last year we added $46 billion of new subservicing UPB and a record 13 new clients, and we are, attacking the marketplace with passion and energy and trying to continue to grow that side of our business. Eric Hagen All right, good stuff. I always appreciate your complete answers. A lot of your MSRs are flow and, co-issue MSRs. Is there an advantage that you can point to in in this environment being as volatile as it is for being a flow buyer versus, a bulk buyer? Like is there a distinct source of value that you can identify for being in the flow market and being a formidable competitor there versus sourcing MSRs in a different channel. Glen A. Messina Eric, with our originations platform, we have basically have four in three different waters, so to speak. We do the flow, which is our corresponding business. We I'll call delivery agnostics. So to the extent one of our clients wants to deliver to us through the co-issue channels, the, cash channels, CRX, S&P or PIT, we'll do that as well, and we opportunistically tap into the bulk market. So for us, we target a yield, that's a proprietary number. We don't disclose it publicly, and we, like to demonstrate some level of agility and flexibility to emphasize or de-emphasize, those channels where we see the best economics and, having that ability. To lean into the flow market when the flow market is, much more attractive or lean into the, S&P, CRX PIT market when that appears to be more attractive or bulk market if that appears to be more attractive, I think it is a great advantage for the company and gives us flexibility to maximize returns. Eric Hagen Got it. Okay, we're looking at slide 22. We're looking at the, operating efficiency chart that you have there. I mean, is there an objective that you have with respect to the operating efficiency on the servicing side? Or is there or should we kind of like expect that level the Kind of be stable. Sean O'Neil I, I'd say our overall objective, Eric is just to continue to increase, pre-tax income in each segment. We think our current levels are adequate. It can shift as we, if we brought in more special servicing, you would see, possibly it slightly increases until revenue catches up, same thing with big chunks of reverse, but overall. We like the level we're at, always continue to try and drive it slightly better through technology, operations, talent, scale, but we do not have, a stated target that we're trying to attain in a certain period of time. Eric Hagen Alright appreciate you guys thank you. Sean O'Neil Thanks Eric. Glen A. Messina Thanks Eric. Operator Thank you. (Operator Instructions). And there appear to be no further questions at this time. I will turn the call back to Glen Messina for closing remarks. Glen A. Messina Thanks, Nikki, and I'd like to thank our shareholders and key business partners for supporting our business. I'd also like to thank and recognize our Board of Directors and the Onity Global Business team for the hard work and commitment to our success. I look forward to updating everyone on our progress to the next quarterly earnings call. Thank you. Operator And this does conclude today's program. Thank you for your participation. You may disconnect at any time. Sign in to access your portfolio
