Onity swings to Q2 loss on MSR valuation hits; exits reverse mortgages via FAR sale

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 5, 2025 · ~2 min read

Key Changes

• high

  Net loss of $13M in Q2 2026 vs. $20M net income in Q2 2025, driven by $140M MSR valuation losses (up 111% YoY) as interest-rate hedges underperformed and financing costs rose 30%.

  MD&A: Net Income & MSR Valuation verify on EDGAR →
• high

  Sold $5.6B reverse mortgage portfolio to FAR on June 30, 2026, exiting originations for five years while retaining three-year subservicing contract; total assets fell 25% to $12.4B.

  Notes: HECM Portfolio Sale view on EDGAR →
• high

  Rithm deboarding accelerated: transferred $23B subservicing UPB in Q2 2026 after October 2025 termination notice; Rithm now 2% of total UPB vs. 11% a year ago.

  Notes: Rithm Deboarding view on EDGAR →