The parent company of top 10 reverse mortgage lender Liberty Reverse Mortgage has completed its shareholder-approved rebranding initiative, transforming the former Ocwen Financial Corp. into The Onity Group.
The initiative has also transitioned the company’s New York Stock Exchange (NYSE) ticker symbol to “ONIT” as of the market opening on Monday.
“Today marks the start of a new era for our company and signifies our transformation, growth and expansion into a balanced and diversified business,” Glen Messina, Onity Group CEO, said in a statement. “We are proud of what we have built – a strong servicing platform with industry-leading cost and operational performance, multi-channel originations and asset management capabilities, and a technology-enabled global platform.”
Company leaders previously described the move as an expression of the attitude they want to evoke from their product offerings. Messina added that this is a central element to the entire rebranding initiative.
“We now have a brand identity that reflects our company, our people, and our commitment to delivering results,” he said. “Our new name, derived from the phrase ‘on it;’ our tagline, ‘we get it done;’ and our vibrant, energetic visual identity collectively stand for a company that takes action, follows through on its commitments and is relentless in creating success for its customers and stakeholders. Onity represents who we are today, and I am excited for what the future holds.”
The company initially announced its intention to rebrand in April, stemming from what Messina called the steady growth of its mortgage servicing and subservicing portfolios, a common point of emphasis in the company’s recent earnings presentations. The rebranding was contingent on approval from the company’s shareholders, which it received at the end of May to clear the way for Monday’s transition.
Other major brands under the company’s umbrella — including PHH Mortgage Corp. and Liberty Reverse Mortgage — will follow suit and be rebranded as Onity Mortgage by this fall.
In the firm’s most recent earnings report, company leaders explained that while they have had to contend with a contraction in reverse mortgage volume — an industrywide issue — the division itself remained profitable.
“Reverse servicing increased its profitable contribution with higher gains on loans held for sale, even as volume contracted,” said Sean O’Neill, Ocwen’s chief financial officer. “Despite rising rates, further depressing seasonally low origination volume, we are pleased to say all of our channels returned to profitability in the quarter.
“Higher margins on lower volumes drove the profitability, with reverse origination seeing the largest improvement. Lower profits and correspondence were offset by gains in reverse and bringing consumer direct back to break-even,” he said.
According to Home Equity Conversion Mortgage (HECM) endorsement data compiled by Reverse Market Insight (RMI), Liberty is the fourth-largest reverse mortgage lender in the country. It endorsed 1,338 HECMs over the 12-month period ending in May 2024, exhibiting a notable increase between March and April. In May, the lender’s volume was down slightly by 11 loans compared to the prior month.
According to first-quarter 2024 HECM-backed Securities (HMBS) issuer league tables compiled by New View Advisors, Liberty/PHH was the third-largest HMBS issuer in the industry with 55 pools and an original aggregate amount of roughly $247.4 million. This gave the company an HMBS issuance market share of 18.7%.
As of late-day trading on Monday, Onity Group’s stock price was down 3.15% to $24.29 per share.