Onity Group Inc. (NYSE:ONIT) ("Onity" or the "Company") today announced two important updates regarding its previously announced reverse mortgage transaction and capital allocation plans.

Finance of America Reverse Transaction

On May 28, 2026, Onity received regulatory approval for the sale of the Company's reverse mortgage servicing portfolio and certain reverse originations assets to Finance of America Reverse LLC ("FAR").

As previously disclosed, and after revising the transaction based on discussions with Ginnie Mae, Onity has agreed to sell reverse mortgage servicing rights ("MSRs") comprised of approximately 20,000 Ginnie Mae home equity conversion mortgage loans with an unpaid principal balance of $5.1 billion as of March 31, 2026. Onity will become the subservicer for the reverse MSRs sold to FAR under a three-year subservicing agreement.

Upon closing, FAR also will acquire Onity's pipeline of reverse mortgage loans as of the transaction closing date and the Company will discontinue originating reverse mortgage loans.

The net proceeds from the transaction are expected to be $70 to $80 million, based on book value of the assets as of April 30, 2026.

Glen A. Messina, Onity Group Chair, President and CEO, said "We are pleased to have received regulatory approval for this transaction, an important step toward repositioning our participation in the reverse mortgage market. This strategic transaction will establish a significant subservicing relationship with FAR, a reverse market leader, help simplify our business, and enable increased focus on more substantial growth and earnings opportunities."

The transaction remains subject to customary closing conditions. The Company will provide an update on the anticipated closing date at a later time.

Share Repurchase Program

On June 1, 2026, Onity's Board of Directors authorized a share repurchase program for an aggregate amount of up to $20 million of the Company's issued and outstanding shares of common stock. Under the program, Onity is authorized to repurchase shares through open market purchases. The timing and execution of any share repurchases are subject to market conditions, among other factors, and the Company may modify, discontinue or suspend the repurchase program at any time. Unless Onity amends the share repurchase program or repurchases the full $20 million amount by an earlier date, the share repurchase program will continue through June 2027. No assurances can be given as to the amount of shares, if any, that the Company may repurchase in any given period.

Messina commented, "Our share repurchase program reflects our intent to deploy capital in a disciplined and strategic manner with the goal of delivering meaningful returns to our shareholders. We believe this initiative will enhance long-term shareholder value and underscore our confidence in Onity's future."