BuybackJun 2, 2026, 06:52 AM
Onity Group Authorizes $20M Share Buyback; Gets Regulatory Nod for Asset Sale
AI Summary
Onity Group Inc. announced regulatory approval for the sale of its reverse mortgage servicing portfolio and certain origination assets to Finance of America Reverse LLC. The transaction involves approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.1 billion, and is expected to yield $70-$80 million in net proceeds. Concurrently, the Board authorized a new share repurchase program for up to $20 million of common stock, aiming to enhance shareholder value.
Key Highlights
- Received regulatory approval for the sale of reverse mortgage servicing portfolio and origination assets.
- Sale includes approximately 20,000 Ginnie Mae HECM loans with $5.1 billion unpaid principal balance.
- Expected net proceeds from the asset sale are $70 million to $80 million.
- Onity will become subservicer for the sold MSRs under a three-year agreement.
- Board authorized a share repurchase program for up to $20.0 million of common stock.
- Repurchase program will continue through June 2027, with repurchased shares retired and canceled.
Price Impact
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